What Does George Soros See About The U.S Stock Market Book Review – The Greatest Trade Ever by Gregory Zuckerman

You are searching about What Does George Soros See About The U.S Stock Market, today we will share with you article about What Does George Soros See About The U.S Stock Market was compiled and edited by our team from many sources on the internet. Hope this article on the topic What Does George Soros See About The U.S Stock Market is useful to you.

Book Review – The Greatest Trade Ever by Gregory Zuckerman

I recently finished a book called The Greatest Trade Ever, written by Wall Street Journal columnist Greg Zuckerman. The book describes some real-life stories of investors like John Paulson, who made billions during the 2007 subprime crisis by betting against mortgage-backed securities. Using instruments such as CDS (credit default swaps), Paulson received large payments from banks when the CDS issuer defaulted. Even legendary investor George Soros asked John Paulson for a tutorial after the young man made his firm 20 billion in the worst financial downturn since the Great Depression. The book talks a lot about how Paulson decided to bet against a mortgage that most people thought was very safe. It also describes the pressure Paulson faced from his clients and investors who doubted the CDS deal.

I believe that the deal itself is undoubtedly the “biggest”. However, that doesn’t mean Paulson was the greatest or smartest guy at the time. In fact, many people, though not most, noticed the mortgage-backed securities bubble in late 2006, including those who were lending money to unqualified borrowers. I know you are not convinced because no one will throw away their money if they know they will lose it all. A common explanation would be that “people are greedy”. This is true, but not complete. The fact that people were conservative is the explanation for all this! These financial professionals, even if they successfully predicted the crisis, are unlikely to bet on the market. The reason is that they had jobs that would prevent them from making rational decisions. There were many traders and investors in the market who were constantly fighting for customers. Suppose you were a trader selling mortgage-backed securities to your clients in 2005, you are unlikely to do something that will cause you to lose your clients by stopping the sale of securities that are growing every day.

Again, suppose you were a fund manager in 2005, you would hardly choose to risk your client’s money by betting against real estate as it rises. So, whether on the buy or sell side, you were doomed. Even if you were among the few who decided to take a chance, any increase in housing prices would put you in a difficult situation. Frequent calls from your customers asking you to clear your positions, guilt from your boss and laughter from your competitors. As someone who spent all of their savings to graduate from business school and worked like a dog for years, you don’t want to lose your job on Wall Street. Also, the tools used in the Paulson trade were brand new and few people had heard of them at the time. No one would want to try tools they are not familiar with. Therefore, hardly anyone can successfully get rich in the crisis. This was not only because people wanted to make money, but also because people wanted to survive by protecting themselves from any possible bad outcomes. Conservatism is the highest human nature.

The entire book can be considered a good biography of what happened during the crisis, but it lacks the author’s understanding and analysis of the crisis. But nevertheless, this is a book worth reading for those interested in what happened during the financial crisis.

More details: http://stockmania-outsidethemarket.blogspot.com/

Video about What Does George Soros See About The U.S Stock Market

You can see more content about What Does George Soros See About The U.S Stock Market on our youtube channel: Click Here

Question about What Does George Soros See About The U.S Stock Market

If you have any questions about What Does George Soros See About The U.S Stock Market, please let us know, all your questions or suggestions will help us improve in the following articles!

The article What Does George Soros See About The U.S Stock Market was compiled by me and my team from many sources. If you find the article What Does George Soros See About The U.S Stock Market helpful to you, please support the team Like or Share!

Rate Articles What Does George Soros See About The U.S Stock Market

Rate: 4-5 stars
Ratings: 9664
Views: 69573284

Search keywords What Does George Soros See About The U.S Stock Market

What Does George Soros See About The U.S Stock Market
way What Does George Soros See About The U.S Stock Market
tutorial What Does George Soros See About The U.S Stock Market
What Does George Soros See About The U.S Stock Market free
#Book #Review #Greatest #Trade #Gregory #Zuckerman

Source: https://ezinearticles.com/?Book-Review—The-Greatest-Trade-Ever-by-Gregory-Zuckerman&id=4389607

Related Posts

default-image-feature

What Does A Well-Stocked Refrigerator Keep In It For Beverages New Zealand Maids (Part two of two: R&R in Sydney)

You are searching about What Does A Well-Stocked Refrigerator Keep In It For Beverages, today we will share with you article about What Does A Well-Stocked Refrigerator…

default-image-feature

What Do You Get Back.For Claiming A.Loss In Stocks Annuities 101

You are searching about What Do You Get Back.For Claiming A.Loss In Stocks, today we will share with you article about What Do You Get Back.For Claiming…

default-image-feature

What Do I.Get Taxed When I Sell My Stock Shares Australian Wholesalers – Do You Really Need An ABN To Buy From Wholesalers In Australia?

You are searching about What Do I.Get Taxed When I Sell My Stock Shares, today we will share with you article about What Do I.Get Taxed When…

default-image-feature

What Are The Trading Hours For The U.S Stock Mark When Is the Best Time to Trade in Binary Options?

You are searching about What Are The Trading Hours For The U.S Stock Mark, today we will share with you article about What Are The Trading Hours…

default-image-feature

What Are So.Come Of The Best Stocks To Invest In Best Discount Broker for Beginners: An Overview of Top 5 Platforms and What They Offer

You are searching about What Are So.Come Of The Best Stocks To Invest In, today we will share with you article about What Are So.Come Of The…

default-image-feature

Was A Jury Used In Stock-Purchase Agreement Lawsuit For Facebook The Arizona Employment Protection Act and the Employment-At-Will Relationship

You are searching about Was A Jury Used In Stock-Purchase Agreement Lawsuit For Facebook, today we will share with you article about Was A Jury Used In…