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The Big Short with it’s all star cast recounts the events of three groups of traders that bet against the housing market in the years before the sub prime mortgage crisis that would eventually result in the failure of key financial institutions.
The Big Short is unique as a high budget Hollywood production that actually takes the time to properly portray the way that finance really worked behind the scenes and uses financial events to progress the plot rather than focusing on wild parties, sports cars and sexy ladies like some other movies that took a very different approach to storytelling.
Similarly to the Wolf of Wall Street, the big short is a move based off a book only the wolf of wall street was an autobiography written by Jordan Belfort himself and The Big Short: Inside The Doomsday Machine, was a standard non-fiction title that described the role of several players in the creation of the credit default market betting against the American housing market.
The Big Short was written by Michael Lewis, a veteran financial journalist and the book really does read like a 320-page financial article, in that it’s very information dense but also very well researched and verified.
For this video we will only be looking at the players that are in the movie, but the book does go into detail on some people that were either entirely cut from the film or merged into other characters to make the movie entertaining to a broader audience.
Unfortunately, in the process of making it appealing as possible to cinema goers the movie did cut out some very important details, and also just straight up got some things wrong.
So, it’s time to lean How Money Works and give you guys the investment banker’s insight into what really happened in the Big Short.
#thebigshort #investing #finance
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Edited By: Andrew Gonzales
Music Courtesy of: Epidemic Sound
Select Footage Courtesy of: Getty Images
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All materials in these videos are for educational purposes only and fall within the guidelines of fair use. No copyright infringement intended. This video does not provide investment or financial advice of any kind.
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@HowMoneyWorks
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@paulsccna2964
Over-all the movie was decent. Also the actors were believable and help tell the story (casting was good). I really enjoyed (the cuts, where the characters, stop and talk (a narrative directly to the audience).The movie does branch off and it starts to get a bit confusing, as the story follows multiple players. It does a good job of explaining, at several points how the banks were selling mortgages back securities. It is unfortunate at the end of the movie, that we learn at the scene over dinner, in which the banker explains how the mortgages are bundled, that we learn the real story, and it would have been better if we had that information in the first 10 mins. Also, to many scenes of people on old cell phones. Some of the scenes seemed like (some part of story was cut out) and we are left with jumping around and then suddenly a scene happens and it is as thought we missed something. Over-all it was good movie. Oddly, the text of the the outcomes at the end, was almost more interesting than the last 20 mins of the movie.
@CineWealth-1
Great
@khalidhamid7448
The same Cathie Wood who is fixed guest on Yahoo Finance
@raukris1307
Is it just me, or, is it that the more I learn about Wall St. the more it all seems like a giant casino just with different games. The people who run it always walk away with billions. The people who operate it walk away with millions and the masses of everyday players (ie John Q. Public) ultimately pays for it all.
@liamhome1664
The whole "he had to talk the institution into the CDS for MBSs is also in the book. I think they might have existed as a tool for insurers working with banks, but certainly not for investment groups, let alone individuals, to walk in and ask for some on very specific MBSs.
@paulfortney4725
Burry is now betting against AI. Smart move…
@abklaass
It seems like a simpler and cleaner solution to shorting the housing market would have been to see who was insuring the default swaps behind the scenes, and short the living hell out of AIG Insurance and buy put options on their stock. If they had done that they probably could have generated some insane returns.
@Technicallyimright
George W Bush was definitely working in the interests of Israel and only Israel.
@mantovani96
Now let’s wait for the AI bubble to pop hahaha
@whengoldenpigsfly
$GME
@Mclem2k24
In conclusion, it was greed
@clayfoster8234
I bet we’d only have to put 1 or 2 CEO’s in prison for 10 years for CEO’s to stop doing illegal things.
@RapidBnnuy
One of the most brilliant lines of this entire movie: "I may have been early, but I'm not wrong." Coming from Michael Burry, that is actually rich. They are the same thing. Being early IS being wrong. In this situation you are literally betting that the market is going to crash, and paying insurance premiums each month that it does not – literally what he was doing. That's insane. What's the craziest thing to me, was that he was smart enough to figure out to insure the bets in case the banks failed to pay them, yet missed two crucial factors. First, that the insurance companies themselves would fail, if the banks were in a position bad enough not to pay it to begin with. Second, that there was so much financial corruption, that they still wouldn't mark his bets properly for weeks after the crash. Not until they were able to secure their own positions to cover them.
@chimkin7873
Burry was willing to sit down with government officials to talk about how he saw the crash coming but nobody ever reached out to him
@ElmerFudd35
What’s crazy is the American homeowner didn’t even realise it was happening until they were living on the streets. Many fled to Mexico in the wake of the crisis. Mexico is still struggling from the high immigration to this day.
@kandeincarlsbad6900
The mortgage brokers were scammers.
@trog6050
This is why looking at what has been going on with median Firsttime homeowner age, median average salary, median home cost it makes me worry same with the ai system.
@igotcha1345
America became a Communist country when they bailed out the banks! Then the banks raised our rates on us! Pure Evil
@shunnieboi
Huh?
@KimmyR3
banking and finance is wild. it's practically betting on a bet, that's betting on another bet, that's already betting another bet. lol
@langerhans
9:21 talking about a 1% default chance while highlighting a 0.17% default chance on the screen… I thought these guys knew that they were talking about
@vetdoc35
Today same thing. Florida is FULL of Salesigns in front of the Houses. .😢😢😢😢
@roca91405
Me in 2000 at 20 years old went to the bank and asked for a mortgage loan, bank said of course we have an special right now and you qualify for it , until 911 happens and me very happy to be a home owner and then started to really struggle to make the mortgage for 6 years I worked and worked and worked and worked to keep my house and in 2007 the bubble popped and I was left tired , in debt and homeless , so yeah the financial system is not made to work for regular people, if made to make themselves happy , never owned a house or anything mayor investments ever since
@deathbox4151
google "social engineering". case closed.
@jchan2299
I thought Lewis was Woody Harrelson in a wig
@PetraDarklander
1:31 So much money and he can't find someone that tells him that his tie is fucked?
@PetraDarklander
It's Capitalism. Make as much money as you can off the backs of the working class. Use that money to elevate yourself above reproach, then do whatever you want. Make a Space Org, Dominate e-commerce, doesn't matter because you can give enough money to (hopefully) the winning team and be in their favor (Elon Musk).
The rich never will atone for their crimes while the working class get pelted at every turn.
Something has to swap in the US, or it will implode.
The rich will get richer and the lower and middle class will get poorer.
@marlo8456
Actually seeing how 'normal' Michael Burry seems, I think casting Christian Bale was a mistake. The way Brad Pitt played his role or casting a lesser known actor who liked more like Burry would have been better. Plus Bale depicted him as a weirdo…which is not how Burry seems to come across in his interviews.