It helps that Lewis is himself a Wall Street expat, a witness to the birth of the modern financial industry at Salomon Brothers in the 1980s, as he detailed in his first book, Liar's Poker. One of the best scenes in the whole movie. As he looks at the crash through those who saw it coming, Lewis digs into the nitty-gritties of the mind-numbingly complex array of derivatives, shadow markets, and side bets that laid the financial system low with his customary verbal dexterity and ability to turn esoteric detail and dry machinations into compelling narratives. Chris asked if Steve Eisman had met Michael Burry, Charlie Ledley or Jamie Mai. Bocconi University - Department of Finance; European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) Three levels of dog shit lower than shit. Chris asked if Mr. Eisman had those kinds of discussions with Deutsche Bank and Goldman Sachs and if they recognized it was dog shit. Mr. Eisman said no, and that FrontPoint was in the minority. Compare Standard and Premium Digital here. Firms create a CDO I think what happened was [that they] created CDOs and found it hard to sell it to investors. Danny didnt know Wing Chau, but when he heard that he was the end buyer of subprime CDOs, he knew exactly who he was: the sucker. In 2008 it was the entire financial system that was at risk. 5 0 obj 2003 . Irresponsible lenders lured people with insufficient income into variable rate mortgages they would be unable to afford when the rates jumped. All that stuff should clear centrally.. Chris asked if he knew people at Paulson & Co., and Mr. Eisman said the January 2007 Las Vegas conference was the only time he met people from Paulson. He said that he did not specifically recall. Just Short-Term Pain, Sages Say, NGO Study IDs Vanguard, BlackRock as Big Climate-Change Villains. The people who created rating agency models [ask them]: why did you have these assumptions and why didnt you change them? I dont think the rating agencies understood they were creating incentives to create that product. Anchorage | Beijing | Boise | Costa Mesa | Dallas | Denver | Des Moines | Hong Kong | London | Minneapolis | Missoula | New York | Palo Alto | Phoenix| Salt Lake City | Seattle | Shanghai | Toronto | Vancouver | Washington, DC | Wilmington. Kim asked if Mr. Eisman had a view of the quality of mortgage research and fixed income research. So now and then he lays it out in easy-to-grasp vernacular: "Looking for bad bonds inside a CDO was like fishing for crap in a Port-O-Let: The question wasn't whether you'd catch some but how quickly you'd be satisfied you'd caught enough." steve eisman vegas conference 2007. penn township hanover, pa map . This creates an insatiable demand for yield, he said, and the thing that has the most yield is subprime. That terrible, terrible 2007 vintage [Corrected] - Financial Times Please reddit help me find this video! And it wasnt such a concern [because] youd only have cash up to your last mark So on the day you want to unwind the trade, your only trade was the cash up to last mark. Cornhole Capital. Mr. Eisman said, I couldnt say thats the big moment. He continued to say that one of my favorite shorts was the rating agencies.
