Book review: A Colossal Failure of Common Sense

Another book I read on my trip to China is Lawrence McDonald‘s A Colossal Failure of Common Sense: The Inside Story of the Collapse of Lehman Brothers.

I find the banking industry fascinating, and this book is really cool. It is an inside story and combines a lot of interviews with the key players in the collapse of this big financial firm.
The story proceeds in chronological order, and provides a nice background and history of the firm. It describes what it’s like to get a job at such a firm, work with analysts and more senior traders, and learn on the job.
It was surprising how much learning on the job there is, especially since much of it is done by betting with other people’s money.
The author delves into politics here and there, which is not that interesting, and doesn’t add much to the book.
So overall, this was a decent book, but not amazing.