- Diamond and Kashyap's layman analysis is a good place to start
- Zingales, my former professor, also has a pretty good layman analysis
- This one, however, is closest to my heart...
The last few days in Hong Kong we find a bunch of investors crying foul over CDOs they bought from banks that had Lehman as one of the gaurantors. Why didn't the government regulate these financial products? I was lied to! The bank didn't explain the risks! The government should have regulated this shit! I want my money back!
One guy said it best: I can't read. The bank told me these were safe investments with good returns. So I just signed on the dotted line.
Signed away his life savings. As a rule, if you don't read, try not to invest in something that is 20x the risk free returns without knowing the risks.
Why do I have to bail out greedy people?