17min chapter

The Security Analysis Podcast cover image

The Big Short

The Security Analysis Podcast

CHAPTER

The Mortgage Bond Collapse

This chapter examines the shift from traditional partnerships to corporate structures on Wall Street and its impact on financial risk management, particularly surrounding mortgage bonds. It tells the story of key players who misjudged these investments, leading to the catastrophic financial crisis of 2008, and critiques the reckless profit-driven culture that emerged. Through personal narratives, it highlights the unconventional approaches taken by some individuals in confronting a flawed banking system, emphasizing the manipulation of credit ratings that obscured the true risks of mortgage bonds.

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