How we cite our quotes: (Chapter.Paragraph)
Quote #1
Now he couldn't help but wonder who exactly was on the other side of his trades—what madman would be selling him so much insurance on bonds he had handpicked to explode? (2.65)
Having done his research on the subprime market, Michael Burry is confident that someone is about to owe him a whole bunch of money. But who? This questions comes up a lot throughout The Big Short, and the difficulty our heroes have finding an answer only illustrates the confusing nature of the financial market. Strap yourselves in, folks.
Quote #2
In exchange for a few million bucks a year, this insurance company was taking the very real risk that $20 billion would simply go poof. (3.27)
Here's what makes this even worse: AIG has no idea they're doing it. They're completely ignorant. This is our first real indication that the subprime market is fueled as much by shortsightedness and insufficient analysis as it is by out-and-out fraud.
Quote #3
They were constrained, however, by a boss with an imperfect understanding of the nuances of his own business, and whose judgment was clouded by his insecurities. (4.7)
This is another running theme in The Big Short: the angry, emotionally volatile boss. In many ways, these guys play a big role in the subprime crisis, with their lack of knowledge leading them to take insane risks with their companies' money. To make things worse, many of these guys squash the opinions of anyone who tries to disagree with them.