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Is Reading good?
February 13th, 2017 11:54 PM
As someone said that exercising will be good for your health, reading will be good for your brain. And MSN even has an article : Why reading is good for the brain.

If you check my 2017 Book List, I added my books to the list, and I think I will finish more. It is very interesting when the business slows down. A few years ago, when the rate went up, I even completed the insurance training and got the license for the insurance. It was good for me to learn more, but later I decided not to proceed. I think I still need to focus on the mortgage business.

Really appreciate it if you still continue reading my blog. I used to have about 400 readers everyday. And numbers are lower recently. I think there might be two reasons, 1)When the interest rates go up, there are not much interests for the mortgage rates info 2)I think I have not updated my website as frequently as before. I will add more contents to my blogs.

Like previous years, I like to list the books I want to complete each year. This year is a little bit different. For the other years, I just wanted to complete the list, and starting 2nd half of last year, I think I enjoyed the reading now. So this will make the much difference. During my lunch break, I used to play the bridge for about an hour, and now I read books sometimes.

One difference I noticed that I have the dots connected.  For the two financial fiction books, the Big Shorts and Liar's Poker, since one is about the subprime mortgage, and the crisis, etc; and the other one about the Author Michael Lewis' career experience about a trader at Salomon Brothers(acquired by Travelers, Citibank later on). There are some interesting readings about the junk bond tradings and mortgage bond tradings, the start and the fall. And every financial crisis was started by  overleverage. One interesting topic about how the investment banks treat their customers: they just ripped off their clients(See also the link here : Goldman Sachs and the Art of Ripping Your Clients' Faces Off). 

When the author was a "geek", he sold AT&T bonds to his first client: One of the Australia Bank. And the single trade cost the client of $60k loss in one day, and the manager of that bank the job. The author felt very nervous about it, other seniors asked him whether he wanted the client to lose money or the employer to lose the money. And they said that they had to "rip off the clients". Though their clients are those institutions with minimum of more than at least 100M, they will never put the clients' interest the first.  And they also said that the clients "had no memory". They were ripped off, and they would come back. And from the clients' point of view, and the investment banks are the same. 

Two persons were mentioned a lot in the book: Mike Milken and Lewis Ranieri. You can click the links if you are interested. Mike Milken lives in LA, and he once had the bond trading office on Wilshire Blvd, which was in Beverly Hills, and very close to UCLA. 

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Posted by Eric Fang on February 13th, 2017 11:54 PMPost a Comment

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