Paulson’s Rise to Fame and Fortune
His prominence and fortune were made in 2007 when he earned almost $4 billion by using credit default swaps to effectively bet against the U.S. subprime mortgage lending market. In 2010, Paulson earned $4.9 billion.
Investing Strategies in Recessions
Blue-chip stocks are attractive to investors during recessions because they typically pay dividends, providing them with a tangible return in the form of income. Blue-chip stocks in recession-resistant industries tend to be especially stable.
Key Figures in "The Big Short"
- Who is Wing Chau?
Wing Chau is an investment advisor and bond manager whose role as a CDO manager was depicted in The Big Short. Learn why his position was controversial and how he contributed to the 2008 financial crisis. - How Did Jared Vennett Profit?
Jared Vennett was also a salesperson who earned large fees for selling swaps to firms seeking to hedge against or profit from underlying mortgage bonds failing. - Jamie Shipley’s Success Story
Charles Ledley and Jamie Mai, who started Cornwall Capital in a shed in Berkeley, California, made millions by betting against the housing market.