Book Summary — Educational Reference

The Big Short

Michael Lewis — Inside the Doomsday Machine — 2010

Chapter Index

Quick Reference

Burry Scion Capital — read prospectuses

Eisman FrontPoint — moral short

Cornwall $110K → $30M → billions

The Flaw

Correlation assumed ≈ 0

Actual correlation ≈ 1

The Machine

BBB bonds → CDO → 80% AAA

CDS on CDOs = synthetic exposure

Glossary

Key Methods Summary

The Big Short — Book Summary & Insights — Based on Michael Lewis's account

Educational reference only. Not financial advice.