Not as good as Too Big To Fail, The Greatest Trade Ever is still an interesting and detailed account of how John Paulson pulled off the biggest gain in financial history in 2007 - 2008 for his hedge fund by betting against subprime mortgages through short-selling and investment in CDS. The book also compares his trade with other short-sellers who spotted the real estate bubble in around 2005 but could never make as much money as the Paulson Fund did.
Maybe the CDO, CDS and other derivative products are too complex, I still don't understand why the others didn't make it while Paulson made a US$15 billion profit in exiting his fund's positions in late 2007. I know timing is crucial, but don't understand exactly how he timed it.
Still enjoyable though....Continua