Phil Lawler has a lucid analysis of the mechanics of the kind of greedy activity that caused the crash of the investment titans and big corporations. A debt that, thanks to the federal government, has been passed on to taxpayers, who will feel the effects more and more as more and more unpaid IOUs trickle down over the years to come.
In a review of Michael Lewis’ book The Big Short Lawler writes: “Michael Lewis, who began his professional career as a bond trader, offers a much more understandable explanation in The Big Short. Lewis introduces the reader to the complex financial instruments– derivatives, collateralized debt obligations, credit swaps– that fueled an era of artificial wealth and then led to the debacle.” Lewis also credits Pope Benedict who, as far back as 1985, warned about the effects of creating artificial wealth. Full article is here.
