The Big Short #3

Having little knowledge about Wall Street prior to reading this book, my best answer for "why did the stock market crash?" would be: It's common for the economy to go through cycles. If I had spent the time to think through that answer, I would have quickly realized that the economy isn't mother nature. It's a complex system of capital and investors that have control over what they do with their money. After reading through the book for several chapters having basically no idea what was going on, I decided to highlight the words and phrases that I didn't understand. I realized that the business vocabulary is very small. After quickly learning terms like, hedge fund, allocate...the book became much easier to understand. I quickly picked up on the point of the book (finally...). Part of the reason for the meltdown of the stock market was the face that America was living on paper wealth and not material wealth. Most manufacturers are based outside the U.S. therefore making the U.S. a huge buyer and less of a seller. A lot of big companies in  America were based around Americans' wealth and how to organize it. This is why President Obama is making such a big deal over getting people jobs. Our main goal should be to create our own wealth, instead of living off the paper wealth from past generations.