Inside The Doomsday Machine Analysis

911 Words4 Pages
The best-selling non-fiction book of Michael Lewis entitled The Big Short: Inside the Doomsday Machine is about the creation of the credit and housing market in the year 2000’s and its relationship to the emergence of the well-known financial crisis of the early 21st century. This book describes some of the key elements of credit swap industry that aimed to bet against the bubble mortgage debt obligation and gained profit during the 2007-2010 financial crisis. The book also discussed the opinions of people who have predicted negatively about the hedge fund and how their founders gained from it when the market was destroyed. Aside from those who have gained, Lewis also highlighted the stories of the biggest failure due to the crash of the market. Many readers believe that this book of Lewis has a lot of things to tell about the causes of the recent financial crisis. The author has put all the comprehensive and informative analysis about failure and misconception that led to the enormous…show more content…
Such incident was triggered by greediness with the use of flawed analysis that were conducted on money-making schemes like the hedge fund. Unlike the crisis that was triggered by war, the recent financial crisis appeared all of a sudden while the economic force is totally unprepared. The Wall Street businesses turned the loans by people into financial schemes that are risky and enormous, thus aggravating the conditions of afflicted groups. The high-leveraged trade for the mortgage continuous to cause havoc even if the loan quality became low which allowed the housing bubble to crash. This crash caused panic and worry to the affected investors who were disgraced by the sudden collapse. Lewis ensured in his books that the event that changed the financial history of the world will be deeply understood by his
Show More
Related

  • Michael Lewis 'Inside The Doomsday Machine'

    644 Words  | 3 Pages

    Critical Analysis: The Big Short Throughout the novel The Big Short by Michael Lewis, there are several significant events that take place that represent the meaning behind its title. The subtitle of the novel is “Inside the Doomsday Machine,” which signifies the mortgage-backed security that Lewis discusses. In my opinion, the economic mechanisms discussed seem to be so unclear that most Americans may not know the detailed meaning of them. The author talks about Steve Eisman, a junior analyst

    Read More

More about Inside The Doomsday Machine Analysis

Open Document