Read All The Devils Are Here: Unmasking the Men Who Bankrupted the World by Bethany McLean Free Online
Book Title: All The Devils Are Here: Unmasking the Men Who Bankrupted the World|
The author of the book: Bethany McLean
ISBN: No data
ISBN 13: No data
Format files: PDF
The size of the: 858 KB
Date of issue: December 2nd 2010
Read full description of the books All The Devils Are Here: Unmasking the Men Who Bankrupted the World:Along with Michael Lewis' "The Big Short" this is a must-read if you want to understand the recent financial crisis. The authors also did "The Smartest Guys in the Room" about the Enron scandal, and I found that book both enlightening and interesting. The story paints a picture of a true financial bubble. Anyway, maybe I finally understand CDOs and derivatives. Maybe.
It's a chilling story, and I found myself horrified many times. The worst was reading about synthetic CDO's, which were like zombie derivatives. They were derivatives of derivatives and allowed investors to either go long (betting the product would increase in value) or short (betting it would go down). Unbelievable.
The biggest thing I learned was "don't trust anyone." These guys were constantly saying, "everything's all right" when they knew or should have known, it wasn't. And, worse yet, none of this stuff was illegal. It just wasn't regulated.
The story jumps around a bit, introducing players and situations in different companies and organizations as it works toward the inevitable crash. Several thoughts from my reading:
1. The whole situation was a "boiled frog" one. It kept building little by little. No one got caught, so they kept doing more and more bad stuff.
2. This was a failure of regulation. Shame on Greenspan, who didn't believe in any regulation, ever. And this is one time Congress should have stepped in, but they were convinced by the financial people that they knew what they were doing. How do you know a financial person is lying? His lips are moving.
3. Bubbles happen. They've been going on since tulips in Holland in the 1700s. This bubble never looks like the last one, so we don't believe they will happen this time. One very important comment was that they happen when "greed overcomes fear." Good point, well illustrated in the book.
4. I kept thinking, "How in the world could the average investor have known what was going to happen?" I do know several people who pulled out just before the crash, but they are in the minority. Most of us lost at least 30% of our savings.
I'm heading toward the finish but wanted to share my thoughts. If you really want to know what happened, this is the book to read. Don't worry; it's really interesting as well as informative.
Read information about the authorBethany McLean is a contributing editor to Vanity Fair magazine, and known for her work on the Enron scandal. She had been an editor at large and columnist for Fortune magazine.
McLean grew up in Hibbing and received her BA in English and mathematics at Williams College in 1992. After college and prior to joining Fortune, she worked as an investment banker for Goldman Sachs.
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