Long but well-told explanation by Michael Lewis of the mass cognitive dissonance that led to the current financial crisis. Lewis wrote the book Liar's Poker, about his experiences as a trader during the '80s financial madness. He thought the insanity had ended but now says current events make that period seem quaint. Junk bond shenanigans again--but this time in connection with even more dubious financial instruments based on home lending. What--house prices wouldn't keep going up forever? Who knew?
[hat tip backspin]