Financial Book Review: “The Big Short” by Michael Lewis

The Postgrad Agenda is no literature review blog, but something about Michael Lewis’ thorough account of our nation’s financial decline has compelled me to publish a short review on it. If you have ever been interested in the cause or mechanisms behind our economic collapse, this is your story. I initially picked up the book because I wanted more clarity surrounding why this country is in financial shambles. To understand the destruction, you’ve got to understand the beast! I had been doing a lot of blog and article reading on the topic, and I also watched the Academy Award-winning documentary “Inside Job,” which I highly recommend to anyone who feels they are more visual learners. “The Big Short” has undoubtedly served as the most comprehensive written history of the downfall that I have encountered yet.

In it, you meet an animated cast of (real) characters who were all a part of the interconnected web that was pre-decline Wall Street. These people are presented in such a manner that this whole book truly reads like an intense fictional story with twists and turns (unfortunately for millions and millions of U.S. citizens, every bit of it is true). Lewis walks you through the process from the very beginnings of the markets that crashed, not just the beginning of our problems. He makes a valiant effort to explain very complex financials ideas and instruments in layman’s terms. More often than not he succeeds in doing this, though the latter parts of the book may lose some readers who have less background knowledge of the system. Ironically, it is stressed repeatedly that the very instruments responsible for the decline are not even widely understood within the industry! Nonetheless, Lewis does a great job at making the book read in a conversational style; it steers far clear of a textbook explanation.

Though I haven’t read volumes of related books to compare to, I highly suggest that anyone interested in understanding the disaster that changed our country pick up this book. If I can guarantee one thing to you, it’s that you will close the book having learned not just one, not two, but many things about those responsible for our present-day economy. Talk about good dinner conversation!

New Year’s in Europe: A Recap

I’ve returned from my 10-day adventure abroad and I can say with confidence that it did not fall short of expectation. I could write a 10-post series on the trip, but I thought I’d spare the details and recap the highlights. So here goes:

New Town Hall (Munich, Germany)

I flew in Munich, Germany on an overnight flight (neighbored by the dreaded “crying child”) and met my group in the airport. We spent the first day on a walking tour and getting situated in our hotel. Day two was New Year’s Eve, and we spent it doing more touring. At night, myself and a few others headed to the city center to kick-off 2011. Though the night started off fairly orderly, as the hours went by, the streets descended into absolute chaos. Fireworks were shot recklessly into crowds and even directly at people (two in my group were hit in the face and body with them). The scene bore an uncanny resemblance to the New Year’s I spent in Amsterdam just two years prior. You can check out a quick clip of the Munich mayhem here (no sound, sorry). After midnight, we checked out a few clubs and made our way back to the hotel.

Innsbruck, Austria

The following morning we headed for Venice (it would be my second time there), but stopped in Innsbruck, Austria, on the way. Innsbruck had my favorite scenery of all the places I’ve ever visited. There is something surreal about being surrounded by snow-capped mountains that feel as if they’re an arm’s length away. I’m not sure that anyone could imagine what that was like without actually experiencing it themselves. Though we only spent an afternoon there, it was the most memorable afternoon I had.

Our Gondalier in Venice

Once we arrived in Venice, we settled into the hotel for the night (it was already late). A water-taxi the next morning would take us to the city where we spent the day on a guided tour, “getting lost,” and testing the waters on a gondola. Just as the two previous times I’ve been in Italy, and one previous time in Venice, I find that either Italians have very limited tolerance for Americans, or it’s in their culture to brush off good customer service. I myself am Italian, so this was quite discouraging. Nonetheless, it was a great experience to be back.

Juliet's Balcony

On the way to Lucerne, Switzerland, we made a quick stop in Verona, Italy, to see Juliet’s balcony, along with all of the letters people leave her (a bigger tourist attraction than I anticipated). Switzerland was a beautiful country with very nice people, but it was a great way to break the wallet. Everything was outrageously expensive (around $5-6 American for a slice of pizza). Unfortunately, I had saved most of my shopping for Switzerland, so I exceeded my budget a bit, and though I don’t like to make exceptions, I figured this trip was a fair one.

Heidelberg Castle, Germany

We finished the trip in Heidelberg and Frankfurt of Germany. Both cities are rich in history (though Frankfurt was all reconstructed post-WWII). I spent these last few days a bit ill, so I have less to say about them, though there was still plenty to see. The highlights of these cities were Heidelberg’s Castle, and Frankfurt’s pedestrian area (packed with shoppers even on the rainiest of days).

The trip was a wonderful experience, and though it will be my last time traveling to Europe for quite some time, I will look to this trip and my last one as reminders of the great experiences I’ve had as a young adult. And now, as I get myself into graduate school, find a job, and settle down, perhaps they will also serve as motivation to find time to travel once I have a stable life!