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The Housing Market: The Big Short By Michael Lewis

488 Words2 Pages
The housing market was highly inflated due to complex financing schemes that in many cases were fraudulent. The Big Short – Based on the adaptation by similar name by Michael Lewis provides us an explanation of what led to the financial crisis of 2007-2008 and gives us a glimpse of few market analysts who predicted the downfall of the U.S housing market and the credit bubble whilst profiting from the same.
A bond is a debt security, which is usually issued by a government or corporation — to make regular interest payments on borrowed money, and, eventually, to pay back the borrowed principal. For generations, financial markets have traded bonds. These bonds have a rating ranging from C (riskiest) to AAA (Safest). The bonds were also good
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