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The Big Short

The Security Analysis Podcast

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Blind Spots and Bold Bets

This chapter examines the banking industry's practices during the housing boom, particularly the originate-and-sell model and the systemic issues it created. It contrasts the myopic mindset of financial traders and underwriters with the innovative strategies of contrarian investors who identified market discrepancies. The discussion emphasizes the failures of credit rating agencies and the significance of outsider perspectives in navigating a flawed financial landscape.

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