Customer Quote by Michael Lewis
““By early 2005 all the big Wall Street investment banks were deep into the subprime game. Bear Stearns, Merrill Lynch, Goldman Sachs, and Morgan Stanley all had what they termed “shelves” for their subprime wares, with strange names like HEAT and SAIL and GSAMP, that made it a bit more difficult for the general audience to see that these subprime bonds were being underwritten by Wall Street’s biggest names.””
About This Quote
Source Book: The Big Short, 2010
Wall Street banks hid risky subprime assets behind innocuous names, obscuring danger from investors.
In simple terms: Banks used euphemisms to mask risky loans.
Key Takeaway
Scrutinize financial jargon for hidden risk.
Themes
finance
deception
risk
Mood
cautious
critical
Type
informative
warning
When to use this quote
- investing
- regulatory review
- public education
Key Concepts
securitization
market opacity
Questions to Reflect On
- What safeguards could expose hidden risks earlier?
- How does language shape perception of danger?
A Different Perspective
Complex financial language can still mislead even after exposure.
![“Crucial decisions are made, today as thousands of years ago, in terms of the intuitive guesses and preferences of a few men in positions of authority...[it is] quite likely that the fate of entire societies may be sealed by a series of avoidable mistakes committed by their leaders.” quote by Michael Lewis](https://sms4smile.com/quotes/img-quotes/a59/michael-lewis-705_decision-making_crucial-decisions-are-made-today-as-thou_16888.jpg)
