Quotes from Michael Lewis

When you borrow a lot of money to create a false prosperity, you import the future into the present. It isn't the actual future so much as some grotesque silicone version of it. Leverage buys you a glimpse of a prosperity you haven't really earned.

He wondered, often, what it would look like if and when the shit in question hit the fan: The stock market at bottom was rigged. The icon of global capitalism was a fraud.

The market might have learned a simple lesson: Don't make loans to people who can't repay them. Instead it learned a complicated one: You can keep on making these loans, just don't keep them on your books. Make the loans, then sell them off to the fixed income departments of big Wall Street investment banks

people express their fondness for a thing by thinking up lots of different ways to say it.

The very first day, we said, 'There's going to come a time when we're going to make a fortune shorting this stuff. It's going to blow up. We just don't know how or when.

Steve's fun to take to any Wall Street meeting," said Vinny. "Because he'll say 'explain that to me' thirty different times. Or 'could you explain that more, in English?' Because once you do that, there's a few things you learn. For a start, you figure out if they even know what they're talking about. And a lot of times they don't!

This was tricky. They had, right now, at home, boxes of letters addressed to Michael from college football coaches and boosters and just people who wanted to get to know the future star. They had a personal letter from Congressman Harold Ford Jr., who seemed to want to become Michael's friend, and a stack of letters from a football coach at the University of Alabama, who seemed prepared to offer his hand in marriage.

The people in a position to resolve the financial crisis were, of course, the very same people who had failed to foresee it:

As a rule, any loan that had been turned into an acronym or abbreviation could more clearly be called a "subprime loan," but the bond market didn't want to be clear.

An investor who went from the stock market to the bond market was like a small, furry creature raised on an island without predators removed to a pit full of pythons.

It took us weeks to really grasp it because it was so weird," said Charlie. "But the more we looked at what a CDO really was, the more we were like, Holy shit, that's just fucking crazy. That's fraud. Maybe you can't prove it in a court of law. But it's fraud." It

From the social point of view the slow and possibly fraudulent unraveling of a multi-trillion-dollar U.S. bond market was a catastrophe. From the hedge fund trading point of view it was the opportunity of a lifetime.

Because his memory is so selective, he has no scars from prior experience," said Vinny.

The effect on James of being ignored by the people who stood to benefit the most from his work was to distance himself even further from those people.

The main effect of turning a partnership into a corporation was to transfer the financial risk to the shareholders. "When things go wrong it's their problem

Greg Lippmann was now blasting Vinny and Danny with all sorts of negative information about the housing market, and, for the first time, Vinny and Danny began to hide the information from Eisman. "We were worried he'd come out of his office and shout, 'Do a trillion!'" said Danny. In

We always asked the same question," says Eisman. "'Where are the ratings agencies in all this?' And I'd always get the same reaction. It was a physical reaction because they didn't want to say it. It was a smirk.

Lippmann had rented a private room in some restaurant and invited Eisman and his partners to what they assumed was something other than a free meal. "Even when he had an honest agenda, there was always something underneath the honest agenda," said Vinny.

How do you make poor people feel wealthy when wages are stagnant? You give them cheap loans.

This wasn't Fitch or even S&P. This was Moody's. The aristocrats of the rating business, 20 percent owned by Warren Buffett. And its CEO was being told he was either a fool or a crook, by Vincent Daniel, from Queens. By

Pope Benedict XVI was the first to predict the crisis in the global financial system… Italian Finance Minister Giulio Tremonti said. "The prediction that an undisciplined economy would collapse by its own rules can be found" in an article written by Cardinal Joseph Ratzinger

Once, he got himself invited to a meeting with the CEO of Bank of America, Ken Lewis. "I was sitting there listening to him. I had an epiphany. I said to myself, 'Oh my God, he's dumb!' A lightbulb went off. The guy running one of the biggest banks in the world is dumb!

In my entire life I never saw a sell-side guy come in and say, 'Short my market

That was Eisman's logic: the logic of Wall Street's pecking order. Goldman Sachs was the big kid who ran the games in this neighborhood. Merrill Lynch was the little fat kid assigned the least pleasant roles, just happy to be a part of things.