Michael Burry has been finding opportunities in farmland, gold, and small technology firms. Mr. Burry, who closed his Scion Capital hedge fund in 2008, is now managing his personal investments and looking for opportunities that are not correlated with moves in the overall market. Michael Lewis profiled Mr. Burry and several other investors in The Big Short, a book covering the sub-prime mortgage lending bubble. Read this article for more details.
If you are already cynical about the motives and practices of professional investors in the major Wall Street banks, chances are that you are not even half as cynical as Michael Lewis. In The Big Short, Mr. Lewis spins a tale that places very unlikely characters at the center of the subprime bubble. All of the individuals were either completely unknown or relatively small players, but they shared in common an insight into the bubble that resulted in spectacular profits. This book reads almost like a novel, at least for those who have a basic understanding of credit default swaps, collateralized debt obligations, and related terminology and concepts. Read this book review for more details.
Perhaps no other government policymaker has suffered as much reputational damage due to the housing collapse as former Federal Reserve Chairman Alan Greenspan. Mr. Greenspan has defended his record in recent months and recently published a paper outlining his views regarding the housing bubble and subsequent crash. In Mr. Greenspan’s view, Fed policy actions had little to do with the crash. Read this article for more details and a link to Michael Burry’s recent New York Times op-ed article.