Real Causes of the Financial Crisis

February 21, 2011

Yesterday’s Washington Post has an amusing article by Michael Lewis (author of Liar’s Poker, Moneyball, The Big Short, and others) on the true causes of the financial crisis.  It’s short, but entertaining; here’s an excerpt to give you the flavor:

Government policies have emboldened ordinary Americans to borrow money they never intended to repay, just like rich people do, and cowed the financial elite into lending it to them. You can’t forget to bear-proof the garbage cans and expect the bears won’t notice.

I’ve been a fan of Lewis’s writing since I read his first book, Liar’s Poker; it was the first honest inside account of what Wall Street is like that I ever read, and still one of very few.


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