If you haven’t seen the movie The Big Short, go see it. Christian Bale (left) plays Michael Burry in Adam McKay’s adaptation of Michael Lewis’s book about the 2008 financial crisis. Burry was one of the hedge fund managers me and my team knew well. He and others helped us to better understand the approaching sub-prime crisis. I wrote about the issue frequently back then.
Nobody knew when it would happen nor the depth of the break, but we were pretty sure it would be big. As it turned out, it was far worse than we anticipated. I never imagined the near collapse of the financial system. I should have gone short the sub-prime trade I was well aware of, or shorted Fannie Mae, or the mortgage lenders or the banks.