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'Moneyball' Author Explores Dark Side of Cheap Credit

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    Michael Lewis on 'Fox & Friends'

  • Duration 3:24
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-- the world following the onset of the global economic crisis to see how it impacted different nations.

What He found was the dark side of cheap credit and a world -- problems that many reflect that reflect many of America's current problems.

Michael Lewis is back with us the author of -- -- the same guy the big short the blind side liars poker his new book is called boomerang.

And you travel around to the travels in the Third World Michael.

A man walked up -- you rewrite the last book it's -- -- one.

I I walked up to him and I said I said what happens next He was He there is a hedge fund manager in Dallas and Kyle -- And He He He didn't write about the sub prime crisis -- -- lot of money off the collapse of the sub prime market He said that's enough.

What happens next is that these debts that everybody is accumulated and have now been nationalized and take -- my governments are -- governments to become less credible and governments are gonna start -- -- Gotta put him off until it started happening.

And it began to happen let's first stop Iceland what did Iceland do wrong -- crashed its economy starts incredible story it's nation of 300000.

People so you're -- barriers are about Peoria Illinois.

And they took their three little bags and it turned him in the three big global -- they by the time they were done they own a 140 billion dollars in assets.

And they thought they turn themselves from a nation of people who.

Fish for a living successfully back to a nation of hedge fund managers and investment bankers.

And they didn't know what they were doing they told is on the story that we were you know -- genetically pre is us taking risk and -- being financial people.

But they did they didn't know what they're doing it and -- big big bankrupted the country so much so many times over that it's preposterous is not as if there's any hope they're gonna pay it back.

Unbelievable Ireland is gonna pay it back but that was once the success of violent the miracle violent it fell apart in 2007.

Yes as -- -- Yet no it's this this story to me is so if you think of this in this country as well that effectively would happen is.

-- -- -- -- huge sums of money in the dark room -- different cultures.

And they decide what they wanted to do -- it was it's a story of temptation and different cultures wanted to do different things with the money.

Pick icelanders they would they really what they really wanted to stop -- -- -- the cal -- the Irish.

They turned they turned Ireland in the most one of the most spectacularly violent -- violence.

They just they went in they win the inside and they build.

You can -- -- Ireland now that they're ghost towns that are brand -- and -- -- and -- -- politicians have agreed that they pay all the money back so it's gonna be tough sledding for Ireland.

I want to get -- you see the video this morning -- happening in -- I didn't.

But watch this together and describe what's happening here.

For us this is on a lot of us -- aware of how how much -- affects us here in America what do they do wrong.

Well they had a dysfunctional and bloated government already they treated the government as it as a source of patriots both all the political parties did before this all this happened.

And people went to the government basically to steal from a and they didn't pay their taxes on the other side.

It the and they didn't have a vibrant private sector when the money came in when -- when the money was.

Do is -- that was put there and kept them but they wanted to do was blow their government in demolish -- I mean really you're in a crazy way.

And they they've -- accumulated debts that they -- they clearly can't repay the question is what happens when they don't repay them is gonna happen.

And how does that ripple through the world.

And it gets -- -- at least perfectly into -- gonna talk about we get back Germany.

Who did it right in his -- set -- bail everybody out.

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