A Colossal Failure of Common Sense by Lawrence G. McDonald offers a powerful insider account of the destruction of Lehman Brothers during the 2008 financial crisis. McDonald’s journey from modest beginnings to Wall Street success brings a human element to a story often told through data and headlines. His early exposure to sales, trading, and hustle, combined with his father’s wisdom that “it’s not about where you start but where you finish,” lays the groundwork for a career that leads directly into one of the most devastating collapses in financial history.
IMcDonald brings the trading floor to life, unpacking how the housing market crash, toxic mortgage-backed securities, and unchecked risk spiraled into chaos. Through real conversations and quotes from industry veterans, the book explores how greed, pride, and ignorance at the highest levels ignored clear signs of disaster. From ghost banks and credit default swaps to subprime debt and corporate bonds, McDonald explains complex financial instruments in digestible terms.
Beyond technical insight, the book also warns against groupthink, detachment in leadership, and the danger of “positive feedback loops” in both markets and institutions. The story captures the psychological tension inside Lehman as warning signs were ignored and top talent walked away in protest. Through compelling storytelling, sharp financial analysis, and memorable quotes, McDonald delivers more than a cautionary tale—it’s a wake-up call.
This book isn’t just for finance nerds. It’s for anyone interested in leadership, risk management, market psychology, or how ambition can outpace common sense. A Colossal Failure of Common Sense is part memoir, part market exposé, and fully essential reading.
