The Big Short

Chen Chen 39913943
Pam Lange
DISC 1311
22 August 2012
low-tonedish potatoes versus Wall street elites

As Leo Tolstoy said: The nigh difficult subjects can be explain to the close feebleminded man if he has not formed any melodic theme of them already, but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, with issue a shadow of doubt, what is laid before him. ---------- Leo Tolstoy, 1897 (Epigraph)

I exclusively agree with what he said and the story that the smart guys in Wall Street were defeated by some small potatoes can also confirm that.

People who cant get jobs from Wall Street often are recruited by rating agencies such(prenominal) as Moodys or Standard & Poors, so these guys in Wall Street are really smart. They graduated from Harvard or Princeton University and make millions of dollars per year. As Michael Lewis said: Wall Street bond trading desks, staffed by people making seven figures a year, set out to coax from the brain-dead guys making high five figures the highest possible ratings for the lather possible loans.(Lewis, Michael. The Big Short, Page96). Because the higher ratings the subprime mortgage have, the more cash they can overhear from them.



So they repackaged triple-B-rated subprime mortgage bonds into triple-A-rated CDOs.
The other guys such as Eisman, Michael Burry or Greg Lippmann, are sort of stark naked hands compared with the celebrated CEOs of investment banks such as Goldman Sachs, Citi Bank, Lehman Brothers. They earn less money, get less information about the grocery store and have less experience. For example, Esiman is a market analyst in Oppenheimer (Oppenheimer was among the last of the old-fashioned Wall Street partnerships and survived on the toss out left by Goldman Sachs and Morgan Stanley.) Burry is a one-eyed neckcloth manager in a little capital firm.

fair(a) because they are sort of green hands, Eisman sifted every pool of subprime mortgage loans and finally found out that...If you want to get a full essay, order it on our website: Ordercustompaper.com



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