Michael Lewis on Subprime

They helped distract outsiders from the truly profane event: the growing misalignment of interests between the people who trafficked in financial risk and the wider culture.

The number of financial articles that make you laugh out loud are very few and far between. But the Michael Lewis piece on Subprime mortgages is fantastic, especially if you've read Liar's Poker. The interview at the end -- with Gutfruend -- had me literally on the edge of my seat.

His main point -- that most financial companies don't understand what they are peddling, and the CEOs don't understand the risks, is something to keep in mind.

Even better, it reminds you to ask again and again to get someone to explain to you what they are doing in a way you can understand. Otherwise, it's alchemy.