Sunday, 22 January, 2012

Books I read in 2011 - Part Two

This post is about just one book. "The big short" by Michael Lewis. Its a brilliantly written book explaining something very complex, very simply and with a story. The author looks at the Subprime crisis of 2008-2009 and the subsequent financial crisis in US economy, from the point of view of those few people who managed to understand that there is something unnatural and wrong about subprime loans and its all going to blow up spectacularly. They bet against the system and stood their ground in face of severe disbelief from all quarters. They were proved right and the system collapsed.

I was in college when the news broke and what with one thing and another, I didn't pay enough attention to what actually caused the crisis in the first place. I knew the effect but not the cause. And this one book made it all clear for me. If you want to understand how the problem assumed such vast proportions and spread throughout the world, this is the one book you should read.

I am putting up a flowchart of the events that I made after reading the book. Its the original, in the crappy handwriting for authenticity, except for one spelling correction.

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