Must read...by the author of liar's poker

This is a must read piece. It is a little long, but well worth it. It is penned by Michael Lewis, the guy who wrote "Liar's Poker", and frankly it is really excellent. I won't spoil the punch line, but you pretty much know where his story is going once he gets started. Even so, the whole article is still compelling.

There are some great one liners in the piece: I liked this one...

“The single greatest line I ever wrote as an analyst,” says Eisman, “was after Lomas said they were hedged.” He recited the line from memory: “ ‘The Lomas Financial Corp. is a perfectly hedged financial institution: It loses money in every conceivable interest-rate environment.’ I enjoyed writing that sentence more than any sentence I ever wrote.” A few months after he’d delivered that line in his report, Lomas Financial returned to bankruptcy.

HT: Newmark's Door.