The Big Short: Inside the Doomsday Machine (book)

"The Big Short: Inside the Doomsday Machine" by Michael Lewis explores how a small group of investors predicted and profited from the 2008 financial crisis. The book explains complex financial instruments like mortgage-backed securities and credit default swaps in accessible terms, illustrating how widespread overconfidence, risky lending, and lax regulation created a bubble. These investors identified the flaw in the system, placed bets against the housing market, and profited when the market collapsed. The narrative highlights greed, misjudgment, and systemic flaws that contributed to the economic disaster, offering insights into the inner workings of modern finance and its potential fragility.