Book Review: The Greatest Trade Ever, Gregory Zuckerman

The Greatest Trade Ever - Paul Johnson, Gregory ZuckermanThe Greatest Trade Ever: How one man Bet against the markets and made $20 billion, is a book that speaks of John Paulson, as a softspoken man who works as a hedge fund manager and is fond of taking a bus ride to work. John Paulson was never seen as risk taker. The book, The Greatest Trade ever is the story that depicts John Paulson’s brilliance at how he got to know that the US sub prime housing bubble was soon going to burst. By cracking this John Paulson managed to bring a profit of $15 billion for the fund he was managing while personally raking in over $4 billion for himself.

The reader would be left impressed as the author follows John Paulson’s investment strategy starting 2005 through the global financial meltdown in 2008. As one reads along, it becomes clear the madness that did characterized the US financial markets and how investors were fooled into believing that property prices would keep rising.

John Paulson et al were able to make money off this and it was largely due to their more realistic approach about property prices than the rest of us in the financial world. The book, The Greatest Trade Ever is a tale of folly and wizardry, personal brilliance versus institutional stupidity.

It was Gregory Zuckerman who brought the limelight to Paul Johnson while writing about the amazing trade involving the sub prime mortgage lending whic made Paul an overnight billionaire. The author, Zuckerman takes the reader through Wall Street’s heart of darkness, the $1 trillion subprime mortgage market which only a few handful of cunning and brave hedge fund managers, could dare short.

Paulson’s brilliant trade of the century was narrated and recorded in this book; it does also provide a much anticipated and enjoyable journey, through the analytical and emotional ride that made up the financial markets prior the Great Recession.
Reading through this book, you discover that banks not only pack harmful investments that resulting in a downward spiral of the markets, but also in the development of interests that could be hedged against it in a cost-effective manner.

The Greatest Trade Ever refers to many instances wherein banks are shown to have messed with their customers, even when they (the banks) paid for such professional advice.

Generally, we saw the absence of critical thinking and uncertainty planning at the banks that were meshed in this. One could find a lot of people here as experts who come from an investment background. It is cumbersome when trying to digest an institution’s financial position; this is merely due to the handling of investment models into huge Excel spreadsheets and macros.

About the Author – Gregory Zuckerman

Gregory Zuckerman an experienced and a knowledgeable author, who is also a senior writer at the WSJ (Wall Street Journal), where he held the position of a reporter for twelve years. Gregory is widely associated with the “Heard on the Street” column, which is about hedge funds and investing amongst other topics. A a two-time winner of the Gerald Loeb award, Zuckerman appears on CNBC twice a week to discuss complex trades.

Out Review on The Greatest Trade Ever

Having said this, the book is a must-read for anyone who’s fascinated by financial madness. It delves into concise details about just how the subprime crisis bubble was blown out of proportion by the banks. All in all though, it is still an informative and compelling read.

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