The Big Short by Michael Lewis (Allen Lane, £25)
This book is a remarkable achievement: it is as gripping as a thriller, yet it manages to explain the financial innovation that triggered the 2007-08 financial crisis in straightforward terms. It provides a lucid introduction to the world of subprime mortgages, asset-backed securities and credit default swaps through the eyes of people who understood what was going on—and profited handsomely in consequence. From his first book Liar’s Poker on, Lewis has demonstrated the capacity to illuminate a complex issue with the kind of telling observation that is the hallmark of great non-fiction prose. This is the only book on the financial crisis that you can read on the beach or by the side of a pool. Whether you knew nothing about the industry or a great deal, you’ll find much of interest and much to learn. John Kay is a British economist
This article originally appeared in the August 2010 edition of Prospect.
