The Doomsday Machine

Decent Essays

The Big Short- Inside the Doomsday Machine was a very informative and interesting book written by Michael Lewis. This book was written about the genius foresight that a group of people had about the market at the time. The market that these men decided to researched and ultimately bet against was the housing market. Due to a lack of regulations this market was not stable and due to greed and other factors such as negligence this market ultimately crashed. This market took many years and poor judgment on the part of many to reach the situation it did and the subsequent crash of 2008 had world wide effects. I believe that the book was able to provide a great view into this financial world and was able to explain how something terrible like this was able to occur. The book looks into the lives of a few people who were not your typical investors or money managers and did what many people of the time neglected to do was to read the bond prospectuses and project where the market was headed. These group of financial investors were able to sort through the tranches and truly evaluate the bonds for what they actually were. From this part of the book I learned not only …show more content…

In the case of the housing market collapse, all this accumulated debt had to be covered by the government to cover the banks which were determined to be “to big to fail”. After it was all said and done the people who put the market in this situation walked away with a huge bonus. This debt is now passed onto the general population again to repay for generations to come. History is said to repeat itself and new policies can be yet again put into place to make this situation possible. This is because Wall Street is driven by greed and they will do whatever they can to make a profit for themselves and their companies without any remorse for what they do obtaining

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