I had no idea that people on Wall Street knew so little about what they did. Really, you’d think that people making this much money doing something would understand the basic underpinnings of their industry, but sadly no.

If you want to enjoy a nice long read about the Hydrogen bomb that just fell on Wall Street then give this a read. It’s very well written.

Here’s my favorite quote from the piece:

He called Standard & Poor’s and asked what would happen to default rates if real estate prices fell. The man at S&P couldn’t say; its model for home prices had no ability to accept a negative number. “They were just assuming home prices would keep going up,” Eisman says.

Oh, and you might want to jump over to the Wikipedia and read up on how short selling works before you get into the article. Honetly, I enjoyed the hell out of this and still only have a fuage understanding of what he’s talking about. But the part where the stock market fell down and went “boom”. That part I got.