“Financial Crisis is not over” – Michael Lewis

Michael Lewis is the author of an excellent book on the financial crisis entitled “The Big Short”. Here he was interviewed by Bloomberg last week and suggests that there is still concerns over the robustness of financial markets and adds his thoughts on the Irish economy. Stories of Bank of Ireland employees chasing Polish workers back to their homeland to collect parking fines – the Poles had left their cars at the airport carpark when they returned to Poland. Some useful economic jargon in the interview also.

In finance, short selling (also known as shorting or going short) is the practice of selling assets, usually securities, that have been borrowed from a third party (usually a broker). The short seller borrows shares and immediately sells them. He then waits, hoping for the stock price to decrease, when the seller can profit by purchasing the shares to return to the lender.

The Big Short: Inside the Doomsday Machine
The Big Short is a 2010 non-fiction book by Michael Lewis about the build-up of the housing and credit bubble during the 2000s. It describes several of the key players in the creation of the credit default swap market that sought to bet against the bubble and thus ended up profiting from the financial crisis of 2007–2010. The book also highlights the eccentric nature of the type of person who bets against the market or goes against the grain. The work follows people who believed the bubble was going to burst, like Meredith Whitney, who predicted the demise of Citigroup and Bear Stearns; Steve Eisman, an anti-social hedge fund manager; Greg Lippmann, a Deutsche Bank trader that created the first CDS market by matching buyers and sellers; the founders of Cornwall Capital, who started a hedge fund in their garage with $100,000 and built it into $120 million when the market crashed; and Dr. Michael Burry, an ex-neurologist who created Scion Capital despite suffering from blindness in one eye and Asperger syndrome. Wikipedia

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