The Big Short & Cannabis (w/ Danny Moses) | The Larry McDonald Show | Real Vision™

TL;DR

Michael Lewis and Steve Eisman's connection led to collaboration and insights that shaped their respective careers in finance and writing, resulting in influential books like "Liar's Poker," "The Big Short," and "Flash Boys."

Transcript

For the viewer watching us right now, that life changing moment, that moment when you had that connection with Michael Lewis, the author of Liar's Poker and The Big Short, how did that change your life? And what was the genesis of that relationship? So he had contacted Meredith Whitney sometime in 2008. And he had asked Meredith, "Hey, Meredith, wh... Read More

Key Insights

• 📔 The collaboration between Steve Eisman and Michael Lewis resulted in their influential books "The Big Short" and "Flash Boys."
• 💳 Eisman's unique viewpoint as a trader with knowledge in both equity and credit aspects offered valuable insights to Lewis.
• 💳 Credit often leads equities, and observing credit movements can provide valuable indicators.
• ♿ The banking relationship for Canadian cannabis companies gives them an advantage over US cannabis companies regarding access to capital and institutional ownership.

Questions & Answers

Q: How did the relationship between Michael Lewis and Steve Eisman change their lives?

Lewis reached out to Eisman and others to understand the financial crisis, leading to collaboration and insights that propelled both their careers and resulted in influential books.

Q: How did Eisman and Lewis collaborate during the writing process?

Eisman and Lewis spent a couple of months together, with Lewis asking pertinent questions and gaining insights into the financial industry. Eisman's unique viewpoint as a trader with knowledge in both equity and credit aspects proved valuable.

Q: What did Eisman suggest as the topic for Lewis' next book?

Eisman introduced Lewis to Brad Katsuyama and Ronan Ryan, who started IEX, a stock exchange. Eisman felt that high-frequency trading should be the focus of Lewis' next book.

Q: What was unique about Eisman's perspective on the financial industry?

Eisman had a rare vantage point as an equity long-short fund manager, allowing him to see the impact of fixed income on investments in real-time. He could observe how credit movements impacted equity positions and vice versa.

Summary & Key Takeaways

• Michael Lewis contacted Meredith Whitney in 2008 to find people who understood the financial crisis, leading to a meeting with Steve Eisman and others.

• Lewis collaborated with Eisman and others, gathering information and insights for his book "The Big Short", published in 2010.

• Later, Eisman suggested a new topic to Lewis, resulting in the book "Flash Boys" and their continued collaboration.