Must Read

PrintPrint EmailEmail ShareShare CiteCite


New York Times: Treasure Hunters of the Financial Crisis

Author: Peter Lattman
November 9, 2013


"Much attention has been lavished on the speculators who reaped huge paydays betting against the subprime mortgages that stoked the financial crisis. Doomsayers like the hedge fund manager John Paulson and the cast of characters in "The Big Short," the Michael Lewis book, saw calamity coming, and their contrarian bets delivered when the housing market collapsed.

But what about the big long? During the dark days of late 2008, while other investors dumped their holdings or sat paralyzed on the sidelines, who decided that it was time to put money on the line? Who bought low and then sold high?"

Five years ago, the global financial system was falling apart. Lehman Brothers had imploded. Banks had stopped lending. Foreclosure signs were as common as weeds on the front lawns of suburban homes.

And Bruce A. Karsh saw the buying opportunity of a lifetime.

Mr. Karsh, a low-key money manager from Los Angeles, had spent his career analyzing and trading the debt of companies. With the world economy buckling, the prices of corporate debt had plunged to levels suggesting that much of American industry was hurtling toward bankruptcy.

Full Text of Document

More on This Topic

Foreign Affairs Article

What Caused the Crash?

Author: Athanasios Orphanides

Crises are an inevitable outgrowth of the modern capitalist economy. So argues Martin Wolf, chief economics commentator for the Financial...

Foreign Affairs Article

Can Economists Learn?

Author: Alan S. Blinder

A recent book of essays by top economists suggests that many of the lessons of the 2008 financial crisis were ones that should have been...


How the Fed Flubbed It

Author: Sebastian Mallaby
The Atlantic

CFR Senior Fellow Sebastian Mallaby reviews economic historian Barry Eichengreen's newest book Hall of Mirrors, which argues that history...