Buy an essay on Book Report on Michael Lewis’ “The Big Short”

The recent economic recession has had a profound impact on the development of the modern economy and modern society. The negative impact of the economic recession is still relevant and many countries, including the most developed ones, such as the US, still have to cope with negative effects of the economic recession, while many industries still cannot recover after the crisis. In such a situation, the recent economic recession, which was one of the deepest economic recessions in the last century, contributed to the re-evaluation of traditional socio-economic values, concepts and beliefs. In this regard, the book “The Big Short” by Michael Lewis is particularly noteworthy because the book helps to understand complex financial and economic terms and phenomena that provoked the recent economic recession and conveys the essence of the recent economic recession in simple and comprehensible terms understandable to an average reader.
In actuality, the book “The Big Short” is one of the latest works written by Michael Lewis and encouraged by the recent economic recession. At the same time, the theme of the book is not new for the author because he raised the problem of the financial crisis and economic development in his earlier books, such as “Liar’s Poker”. In this respect, it is worth mentioning the fact that the author has preserved his ironic style and critical analysis of the events that occurred in the financial world and in the economy of the US as well as of the entire world. Michael Lewis attempts to re-evaluate traditional economic theories and approaches to business and financial markets because he stands on the ground that the existing financial market and socioeconomic system at large are imperfect and lead to nowhere. At any rate, in the course of his book, Michael Lewis develops the idea that the recent economic recession did not occur spontaneously but it was the natural outcome of the existing socioeconomic system, which is vulnerable to profound economic crisis and turbulence. The author argues that modern financial markets and economic development are driven by greed and fear, which, according to Michael Lewis, become the major cause of economic recession and financial crisis. At this point, it is worth mentioning the fact that greed and fear are quite abstract concepts to explain the recent economic recession but Michael Lewis explains the greed and fear referring to empirical study of the development of the recent economic recession. In this respect, it is possible to refer to studies conducted by other specialists (Latham and Braun, 2008), who place emphasis on the fact that the recent economic recession in the US was provoked by overheating of the housing and mortgage market in the US, when individuals and companies increased the price of real estate to the exorbitant level in the pursuit of higher revenues and when they proved to be incapable to pay off loans they took for purchase of houses the crisis has struck.
In this regard, Michael Lewis refers to the example of outsiders and conducts case studies to show the manifestation of the economic recession and its negative effects on particular companies. He conducts the detailed study of each case, when outsiders operating in the financial market sunk down under the impact of the growing greed and fear. The author reveals the main trend that when the panic strikes, outsiders are the first, who feel the full extent of the financial crisis and whose business is ruined first.
At the same time, Michael Lewis points out an interesting idea that the recent financial crisis did not have the ground in the real economy. Instead, the financial crisis and the following economic recession were provoked by speculations in financial markets mainly. Therefore, the author concludes that the speculation and the strife for wealth and maximization of revenues leads to the unreasonable and ungrounded raise of prices of houses, oil, shares of certain companies and so on that eventually results in the financial crisis and economic recession. To put it in simple words, Michael Lewis concludes that the economic recession is provoked by the pursuit of maximum profits, without the respective investments in the development of the real sector of economy.
In fact, the book “The Bog Short” is written in simple language comprehensible to an average reader. Therefore, the mass audience can perceive the message of the author clearly and understand complex phenomena that take place in the contemporary business environment. In such a way, Michael Lewis explains what has actually happened to the US economy and stresses that the existing socioeconomic system is far from perfect because it is driven by greed and fear.
Thus, taking into account all above mentioned, it is important to place emphasis on the fact that the book “The Big Short” by Michael Lewis focuses on the analysis of the roots and causes of the recent economic recession. The author concludes that the existing socioeconomic system and the greed and fear provoked the economic recession.

 
References
Latham, S. F. and M. R. Braun. (2008). “The Performance Implications of Financial Slack during Economic Recession and Recovery: Observations from the Software Industry.” Journal of Managerial Issues, 20:1, p.30-42.
Lewis, M. (2010). The Big Short. New York: W.W. Norton & Company.