Aside from This American Life's numerous shows explaining the subprime mortgage crisis, Michael Lewis's The Big Short is the best. Lewis tells the story of our financial armageddon and actually makes it entertaining and mostly understandable. He identifies the main characters of a narrative, makes them heroes, and lets them explain the plot.
Writing about what I learned in The Big Short is much more aggravating than reading it. I now understand the basics of CDOs, credit default swaps, shorting a bond/stock/company, subprime mortgages, hedge funds, and the ratings agencies. And I now have a deeper understanding of the depravity, greed, stupidity and laziness of the human race. Lewis explains that the people in charge of the "too big to fail" firms investing consequential sums of money in the subprime mortgage machine, and most of their employees, had no idea what they were doing with this money. When they finally caught on, they had already failed.
I suppose ignorance is more comforting than evil.
Monday, August 23, 2010
Thursday, August 5, 2010
Buyology: Truth and Lies About Why We Buy and the New Science of Desire by Martin Lindstrom (29)
The continuing deluge of books about human decisions based on emotions, stereotypes and snap judgments have been enlightening and disappointing. Martin Lindstrom compiled studies in Buyology that me doubt human capacity for reason and understanding the world and ourselves. Were the Enlightenment philosophers I idolize delusional?
Buyology is a marketing and branding master's study of the real reasons why people buy the products they buy. He examines advertisements that work, advertising methods and myths that just won't die, and why people say one thing and purchase another.
It is a fast read that looks much longer and more cerebral than it is. Lindstrom's simple style makes reading the brain chemistry explanations easy. It's better researched than a Gladwell, but not quite as entertaining. Maybe the most interesting bit of the book is the evidence that contradicts the idea that most people are capable of knowing themselves and their motivations. I believe in man's ability to resist emotional urges. I think Lindstrom does too, and wrote this book to share tools for overcoming our irrational impulses.
Buyology is a marketing and branding master's study of the real reasons why people buy the products they buy. He examines advertisements that work, advertising methods and myths that just won't die, and why people say one thing and purchase another.
It is a fast read that looks much longer and more cerebral than it is. Lindstrom's simple style makes reading the brain chemistry explanations easy. It's better researched than a Gladwell, but not quite as entertaining. Maybe the most interesting bit of the book is the evidence that contradicts the idea that most people are capable of knowing themselves and their motivations. I believe in man's ability to resist emotional urges. I think Lindstrom does too, and wrote this book to share tools for overcoming our irrational impulses.
Blue Like Jazz by Donald Miller (28)
A lot of memoirs I've read lately have tried to balance guilt and regret with humor. Self-deprecation is easier to take with a spoonful of humor.
Miller doesn't try to alleviate the vulnerability in Blue Like Jazz with jokes. The book is full of his mistakes and he shares some very personal thoughts, but it never feels intrusive or uncomfortable, perhaps because it is so introspective. Miller is really pondering himself, his motivations, and his past. He really cares about knowing what he believes and treating other people with love and respect.
What I like best about Blue Like Jazz is that it reminded me, during a very selfish portion of my life, that I really need to care about the people around me. I need to stop letting little things bother me, show my affection in actions, and really admit my mistakes. Blue Like Jazz is about spiritual mystery and Miller's rise to spiritual, emotional, and social maturity.
Yeah, yeah, I know. I grew up in the church and just got to reading this book two years after college.
Miller doesn't try to alleviate the vulnerability in Blue Like Jazz with jokes. The book is full of his mistakes and he shares some very personal thoughts, but it never feels intrusive or uncomfortable, perhaps because it is so introspective. Miller is really pondering himself, his motivations, and his past. He really cares about knowing what he believes and treating other people with love and respect.
What I like best about Blue Like Jazz is that it reminded me, during a very selfish portion of my life, that I really need to care about the people around me. I need to stop letting little things bother me, show my affection in actions, and really admit my mistakes. Blue Like Jazz is about spiritual mystery and Miller's rise to spiritual, emotional, and social maturity.
Yeah, yeah, I know. I grew up in the church and just got to reading this book two years after college.
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