1. In 2007, Meredith Whitney announced that what company had so mismanaged its affairs that it would slash its dividend or crash?
(a) Salomon Brothers.
(b) Citigroup.
(c) Gotham Capital.
(d) The Fitch Group.

2. Steve Eisman discovered that what company was fraudulently selling fifteen year mortgages under the guise of thirty year mortgages?
(a) Salomon Brothers.
(b) The Fitch Group.
(c) Household Finance Corporation.
(d) Gotham Capital.

3. Michael Burry could not bet against mortgage bonds in the same way he could other bonds because he could not short houses, only what?
(a) House builders.
(b) Construction workers.
(c) Government buildings.
(d) Commercial buildings.

4. What is the name of the investment group Steve Eisman formed after quitting his job as a bond analyst?
(a) Deutsche Bank.
(b) Cornwall Capital Management.
(c) Scion Capital.
(d) FrontPoint.

5. Where did Michael Burry begin cataloging his investments and their results, which drew interest from Wall Street brokers without Burry's knowledge?
(a) A magazine.
(b) A blog.
(c) A newspaper.
(d) A library.

Short Answer Questions

1. On what date did the head of the International Monetary Fund warn that the world financial system was teetering on the "brink of systemic meltdown"?

2. When did money manager Michael Burry become interested in bonds?

3. Michael Burry worked as a resident in what field in Chapter 2?

4. What did Michael Burry study in college?

5. With whose assistance did Steve Eisman publish a report outlining the bad practices of the subprime mortgage lender in Chapter 1?

(see the answer key)

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