The Big Short tells the story of the lead-up to the financial crisis. It focuses in particular on a few exceptional people who were able to predict the crisis in advance and thus profit from it. Along the way, Lewis also delves into the personalities and actions of people on Wall Street who contributed to the deepening of the crisis. He concludes by tying this crisis back to its roots in the s, and by noting that not much has changed on Wall Street in the years since the crash.
Lewis was inspired, in part, by his personal experience on Wall Street in the s. He had worked for Salomon Brothers in New York and in London, and became disillusioned with Wall Street as a whole because of his negative experiences with the company. He experienced the financial irresponsibility and crisis of the s, and believed that, after this, Wall Street would get its act together. In fact, he wrote a book called Liar's Poker about his experiences on Wall Street in the s, which he believed would warn people against repeating the mistakes he had observed. But when he realized that an even worse financial crisis had been set up for by the irresponsibility he originally observed in the s, he chose to write about this in The Big Short. He wanted to trace how this second crisis had come about, and why only a few people were able to predict it. Whitney is an analyst who correctly predicted that Citigroup had badly mismanaged its affairs, and caused a crash in the stock market.
These elements in the story will be used from the beginning to the end of the novel or short story. These elements are also active and relate to each of the other elements dynamically. The main theme in the short story is about being stuck in the past and particularly about finding it hard to move on with your life, when someone close to you dies.
Will more regulations reduce bad behavior on Wall Street, or will the banks always find new and creative ways to get into trouble? Argue for your position. What is the principal financial instrument used to bet against a bond, and how, briefly, does it work? Housing prices continue to rise, and you are offered a no-credit-check, no-down-payment second mortgage on your small but comfortable house. Insurance giant AIG gets into trouble from one of its products related to investing.