Want to easily and fully understand the Mortgage Meltdown? Then Read This

I just read The Big Short by Michael Lewis. That dude can write. His story telling is second to none. Everyone of our generation should really read this. Plus, it's fun as well. Anytime a bunch of Wall Street guys get together, the story is entertaining if nothing else. The rating agencies especially come off poorly. One of the more interesting aspects centers around people who made decisions without fully understanding the risk involved (read AIG).

My take is that the bottom line is when someone is willing to buy a product, people will sell it. In this case, people were willing to buy a product that represented assuming risk in anticipation of future cash flow. People should be selling mortgage on a million dollar house paid by someone on minimum wage if someone will buy it. In my mind, the people supplying the demand for these products are the suckers.

Of course that statement only holds in a true free market. Unfortunately, our government disagrees and bailed them out. Funny, that leaves the tab with us. Meanwhile, AIG execs are still getting paid. That sucker label gets moved to you and me.

So definitely go pick this one up and discover why we should all be pissed as drunk Irish boxers that we're stuck with the tab. Everything is clearly explained and some people could foresee this as early as 2003-2004. I highly recommend it. Great job Michael Lewis.

Want to easily and fully understand the Mortgage Meltdown? Then Read This