The Big Short
I am currently reading The Big Short. I did see the movie with my wife a while back. I find this book very interesting. It is a fantastic study in how stupid the masses can be. In this case, it was an entire industry that we would expect to have sufficient financial knowledge that dropped the ball. Very well-written book. Steve Eisman, Michael Burrey, and Greg Lippman sound like real characters. They remind me of a handful of engineers I have worked with in the aerospace industry...a mix of autism, bravado and rebellion. The book has me laughing out loud regularly.
I'm a young engineer that will be taking the PE exam this fall and applying for licensure. In the mean time, I'm studying for the the Series 65 exam this summer. I found that stability was in engineering but the money was in finance. Thankfully I work for a small power company and get to do both roles, regularly getting major projects from the CTO and CFO. Currently I'm managing a fiber to the home infrastructure and business plan; turned out that my background and passion in technology and finance made me the ideal candidate for running the project (which really pissed off some people with 20+ years of experience over me). Glad to learn that I'm not the only oddball engineer that doesn't hate finance.
I finished reading "The Big Short" earlier this year. Like you, I was trying hard not laugh out loud while reading in my weekend coffeeshop. I saw a lot of similarities between myself (engineering-types) and the main characters. The autism of Burrey, the crusading/offending Eiseman, and the ego of Lippman. I believe it was Lippman that said in the book (or author Michael Lewis) that the terms used in the industry were essentially made up to sound sophisticated and that only the finance guys knew what it all was, instilling a false sense of confidence in the "experts". It made me realize the true value in being a contrarian and needing to do your own verification, never accepting conventional wisdom ("housing always goes up", "you need to buy a house now", etc.), and how tough it is to go against the room. Everyone will ridicule you and call you names until you're the last one standing cause you held on to your own convictions. It was a great book to read, I thought it was well written, and had some great life lessons (don't be afraid to come out and ask "how are you going to f*ck me on this deal?").
Don't stop there...integrate as much knowledge as you can...you will blow away your competition.
even spel gud. -- j
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really good ones ... and I love goading him on! -- j
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th' payunt. . stank up th' playce to. -- j
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we're ready for 'em! -- j
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I have a son with autism. Just in the last day or so I was reading the passage in the book where Burrey talks about referencing his therapist's description of Asperger's and it really smashed me like a brick. It sounded a lot like me. A lot. I don't think I'm on the spectrum but, man, could I relate looking back on my life. Was talking to my wife about it just last night.
Do you have the Series 7 yet? Think about it, if not. It's not too bad. Just be sure to get your options basics down.
I could write a book on this but I'll keep it short. In latching firmly onto research and basic facts, and then bucking the system, my life has been one hell of a ride. I've seen things that'd blow minds. Keep your tenacity. It's key.
I do not have the Series 7, as that requires a FINRA institution to sponsor me. However, the Series 65 allows me to become an Investment Advisor and eventual set up various fund, including a hedge fund. That does not require a sponsorship; but the recent trend towards index funds could kill the fee structure. Which why I focus on pay for performance.
I, for one, would very interested in a book about a ride you call your life. I am quick to attribute the biggest factor to my early success in all things I'm passionate about, has been in finding good mentors that can share their experiences and lessons. I have one friend my own age, we are studying for the Series 65 together, and he's a friend cause he has achieved more success than me. All of my other friends are 10+ years older and are my mentors. Thank you.
Yeah, the 65...I can't remember if that's mainly mutual funds(?) Mine is the 66, which (if I remember correctly) is a combination of the 66 and 63. It's all a blur anymore. 66, for me, seemed tougher than the PE. The 7 was actually enjoyable, like the EIT. I do picture myself in a hedge fund someday. But, I may be more interested in sitting on the beach with a bottle of wine instead.
I came away still not understanding how everyone dropped the ball. To me the RE boom was obvious, and except for this I have a lousy record of making financial predictions. It's so unclear why the industry didn't see it that when you look at it's like a Rorschach blot in which the viewer see his policy objections: loose monetary policy, home loan regulation/subsidy, corporate governance and exec compensation issues, personal irresponsibility, vague financial industry skullduggery, general income inequality.
Financial mania occur through history, though, even when these things are present. It's like a human mob behavior that comes out under the right conditions.
I like how the characters remind you of engineers. I've always thought Wall St needs engineers: https://www.element14.com/community/c...
Engineers, almost universally, tend to be more conservative regarding financial risk than other people. The financiers who saw the flaw that lead to the Big Short were very knowledgeable of macro economics and/or had a very solid background in science and math. Burrey was a doctor, for example. The accounts of Eiseman offending fellow Wall Street people are absolutely hilarious...I was just sitting in a bagel shop at lunch reading the book and laughing my ass off.
I got my PE license about 10 years ago, although my work does not require licensure. I've wanted to learn to fly a plane for a long time I have an engineering colleague who learned to fly as a teenager.
My father is a banker and knows almost nothing about technology. I've always been into economics, investment, and financial speculation, but I've never worked in it. I think I like keeping it avocation. In high school I spent so much time tinkering with antennas and electronics. Now that I do it for a job, I never do it at home anymore.
i saw the movie, the short of the movie is that it does not go to the root cause and exams the result...either does the movie Assault on Wall Street...
thanks to Ayn Rand and Objectivism, i am able to see the WHOLE picture....