SNAFU with Ed Helms From Here We Go Again With Kal Penn: Another Economic Crash with Michael Lewis
Dec 5, 2025
Kal Penn chats with Michael Lewis, a bestselling journalist renowned for his insights on finance and the 2008 crisis. They delve into the complexities of subprime mortgages and the moral dilemmas behind them. Lewis reflects on Lehman Brothers’ collapse and the characters involved, highlighting why few were prosecuted. He warns about risks moving into private markets and the shortcomings of post-crisis regulations. They also discuss trust in institutions, where Lewis invests his money, and share rapid-fire trust ratings for various media outlets.
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Friend Who Peddled Subprime Loans
- Kal Penn recounts a college friend who sold subprime mortgages and later shrugged off the harm.
- The friend admitted knowing loans would default but pursued bonuses and new clients anyway.
Risk Disguised By Opaque Mortgage Packaging
- Risk was hidden by packaging risky mortgages into opaque bonds that few could inspect.
- That opacity let originators sell bad loans without feeling the consequences, fueling the bubble.
Traders Watching The City Like Ghosts
- Michael Lewis recounts FrontPoint Partners wandering Manhattan after realizing the system might collapse.
- They sat on St. Patrick's steps, stunned that ordinary people didn't see the impending disaster.
