TheBigShortInsidethedoomsdaymachineAlsobyMichaelLewisHomeGameLiar'sPokerTheMoneyCulturePacificRiftLosersTheNewNewThingNextMoneyballCoachTheBlindSideEDITEDBYMICHAELLEWISPanicTheBigShortINSIDETHEDOOMSDAYMACHINEMichaelLewisW.W.NORTON&COMPANYNEWYORKLONDONCopyright(c)2010byMichaelLewisAllrightsreservedForinformationaboutpermissiontoreproduceselectionsfromthisbook,writetoPermissions,W.W.Norton&Company,Inc.,500FifthAvenue,NewYork,NY10110ISBN:978-0-393-07819-0W.W.Norton&Company,Inc.500FifthAvenue,NewYork,N.Y.10110www.wwnorton.comW.W.Norton&CompanyLtd.CastleHouse,75/76WellsStreet,LondonW1T3QTForMichaelKinsleyTowhomIstilloweanarticleThemostdifficultsubjectscanbeexplainedtothemostslow-wittedmanifhehasnotformedanyideaofthemalready;butthesimplestthingcannotbemadecleartothemostintelligentmanifheisfirmlypersuadedthatheknowsalready,withoutashadowofdoubt,whatislaidbeforehim.--LeoTolstoy,1897ContentsProloguePoltergeistChapter1ASecretOriginStoryChapter2IntheLandoftheBlindChapter3"HowCanaGuyWhoCan'tSpeakEnglishLie?"Chapter4HowtoHarvestaMigrantWorkerChapter5AccidentalCapitalistsChapter6Spider-ManatTheVenetianChapter7TheGreatTreasureHuntChapter8TheLongQuietChapter9ADeathofInterestChapter10TwoMeninaBoatEpilogueEverythingIsCorrelatedAcknowledgmentsPROLOGUEPoltergeistThewillingnessofaWallStreetinvestmentbanktopaymehundredsofthousandsofdollarstodispenseinvestmentadvicetogrown-upsremainsamysterytometothisday.Iwastwenty-fouryearsold,withnoexperienceof,orparticularinterestin,guessingwhichstocksandbondswouldriseandwhichwouldfall.WallStreet'sessentialfunctionwastoallocatecapital:todecidewhoshouldgetitandwhoshouldnot.BelievemewhenItellyouthatIhadn'tthefirstclue.I'dnevertakenanaccountingcourse,neverrunabusiness,neverevenhadsavingsofmyowntomanage.I'dstumbledintoajobatSalomonBrothersin1985,andstumbledout,richer,in1988,andeventhoughIwroteabookabouttheexperience,thewholethingstillstrikesmeastotallypreposterous--whichisonereasonthemoneywassoeasytowalkawayfrom.Ifiguredthesituationwasunsustainable.Soon...
