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This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.
Short Answer Questions
1. By what year had Steve Eisman gathered a group of investors around himself filled with people who believed as he did that no one on Wall Street knew what they were doing, as described in Chapter 1?
2. What does CDO stand for?
3. What is a collection of one hundred different mortgage bonds, usually the riskiest that are combined to create a new group of bonds that could take the low rated bonds and reclassify them at a higher rate?
4. In Chapter 5, Ledley and Mai bought multi-million dollar triple-A CDOs rather than the triple-B CDOs who had purchased?
5. On what date did the head of the International Monetary Fund warn that the world financial system was teetering on the "brink of systemic meltdown"?
Short Essay Questions
1. How did Charlie Ledley enter the bond market in Chapter 5?
2. Discuss Steve Eisman's work with mortgage bonds. How were mortgage bonds divided?
3. How does the author describe his impressions of Wall Street when he began working there in Chapter 1?
4. Who was the only person at AIG FP to investigate the company's CDSs in Chapter 4? What did he discover?
5. What led Steve Eisman to open his own hedge fund?
6. With whom did Charley Ledley work in New York? What individual did he meet from Berkeley, California in Chapter 5?
7. What patterns did Steve Eisman's team discover in mortgage trading in Chapter 4?
8. What drew Mike Burry to an interest in CDSs?
9. What intrigued Steve Eisman about CDSs in Chapter 3?
10. How did Charlie Ledley's first investment pay out? What was the company's worth?
Essay Topics
Write an essay for ONE of the following topics:
Essay Topic 1
Discuss the differences between stock trading and bond trading. How are bonds more difficult to determine the value of?
Essay Topic 2
Discuss the role that Merrill Lynch played in the mortgage crisis of 2008. What actions did the company take which led directly or indirectly to the failings of banks?
Essay Topic 3
Describe FICO and the role of rating systems in the mortgage crisis. From whom did Eisman make the discoveries about the ratings companies?
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This section contains 926 words (approx. 4 pages at 300 words per page) |
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