Though Boomerang is a collection of articles that appeared in a magazine, however the book is a great read. Fun to read, funny and yet very profound. It probably provides a great lesson to laymen on the 2008 crisis.
Narrative on 2008 crisis has focused around the sub-prime and the housing market in the US. However as Mr. Lewis says “The lights are out and you can do whatever you want to do and nobody will ever know”. “The machine that enabled Greece to borrow and spend at will was analogous to the machine created to launder the credit from sub-prime crisis.” So it is obvious that the easy liquidity of the 2000s and the central banks keeping interest rates low (their own version of utopia) led to the financial crisis.
A very interesting chapter was on Germany…….how did the smart people who were creating liquidity….answers are clear — investing in things that you do not understand, making bets based on word of people (like credit rating agencies or agencies telling you about liabilities of countries) who were either incompetent/ lying/ of making errors of judgements, etc.