The Big Short is a film that is based in part on a documentary about the financial crisis from 2007-2008. This film not only covers the events that led to the financial crises, but also the men who predicted the consequences. A few well-known actors are featured in the film, including Ryan Gosling and Steve Carell. Christian Bale and Brad Pitt also star. The Big Short is the story of four outsiders working in finance. They predict the crash of the stock market, also known as the collapse of the housing bubble. The Big Short exposes Wall Street’s fraud. These firms provided loans to individuals, but they didn’t guarantee that they would get paid back. They don’t know what’s happening around their home. The financial system broke when house prices began to drop and people stopped making mortgage payments. There are many ways to approach the scenes and how the housing market crashed. However, it was the catalyst for the Great Recession.
Jared Vennett, also known by Ryan Gosling as Wall Street trader, is cocky. Although he works alongside Mark Baum, he is only interested in making his part of the profits and not about working with him. Jared Vennett covers Burry’s goal for the creditdefault swap. Jared also manages hedge funds. Burry works with Jared to invest in the swap markets. He is also an observer of collateralized debt obligations (CDO). CDO puts market risks at risk. Michael says that the housing bubble will cause the economic collapse. Vennett, who learned his analysis from Burry and a banker who sold Burry an earlier swap, understands Burry’s. Vennett used his analytical skills to solve the problems in finance. He was able to verify Burry’s theory. He decided to trade swaps in the market. Vennett made $47 million by selling swaps. He was also the manager of the hedge funds. Michael sees the U.S. housing market as a similar bubble that is inflated by high-risk loans. This causes economic collapse. Michael then uses a credit default swap to shorten his housing market. His clients and he start to fight. They get angry. The bank claimed that housing was stable and that the market was still growing, which wasn’t true. People began to feel worried that Burry was taking them out of their money. He placed a moratorium against withdrawals to stop them from trying to recover their money. He was able to make $100 million for him and $700 million for the investors. He achieved 500% returns to his investors.
Mark Baum is also known by the name Steve Carell from the movie The Big Short. Baum is a blunt and angry manager of hedge funds. He is fed up with Wall Street’s unfairness and wants to end it all. He wants to end all fake traders, and money. He has been brought in to solve the housing bubble. He does not believe in the Wall Street’s negative portrayals of injustice. Baum is only fair because of his brother’s suicide. He is willing to do whatever it takes for people to be able to enjoy the rights that they have, provided it is legal. Mark bought swaps from Vennett because of his respect for business models. Baum recognizes that many frauds and conflicts are caused by company’s. He says this will cause a total collapse of the economy. He decides then to borrow money and wait until last minute to get rid of them. He then spends $1 billion on loans and explains to his bank why they won’t be held responsible for the crisis. They created the crisis. Ben Rickert is also known in real life as Brad Pitt. He is a trader for Deutsche Bank in the film. Rickert is sought by Charlie Geller (as well as Jamie Shipley), two investors. Rickert is not always happy. He prefers things done perfectly. He has a quick temper. Geller, Shipley and Rickert found Vennett’s paper. They brought the Rickert to help. Geller, Shipley and others are hostile to the housing market and make bets. Rickert is furious that they made a profit from the collapse of the U.S. economic system. These two men are making a lot of money, but they don’t realize the risks they are taking or the impact it has on banks. Shipley and Geller sought to sue rating agencies for misinforming mortgages. This crisis resulted from many things. Burry’s mismanagement of his people was one of the major crises in the movie. Burry suggested the credit default Swap, which places bets on the market to make money. This angers many people. He refused to let them sell the property. His bet is accepted by banks, but monthly fees must be paid. He is perceived as a waste of capital by his clients. Market collapses when there are no withdrawal restrictions. Another crisis is when the four main characters in the movie see it coming before it happens. “To short” in business means to bet that a company’s investment value will decline. This prediction was confirmed by the four men. These four men sell short securities related to the housing bubble. Eventually, they make a lot more money as everyone else loses their money. Wall Street sold all these mortgages to banks by putting them in one basket. Although all the items in the basket were safe, the bank did not have to return any money. The bankers loan money to people who are not financially stable, which increases the risk in the basket. This whole movie exposes Wall Street’s fraud. They didn’t care about how much they would profit from the things they did, and they were quick lend loans to people even though they couldn’t repay them. Selena was playing gambling, and half of those who bet on her would win. Half thought she would lose. Correct bettors knew that mortgage securities would fail. They made money, however. These bankers caused the crisis and were never punished.
The banks should not have just loaned money to people without ensuring they receive the money back. This would have prevented the crisis. This would have never happened if bankers were smart. It is possible that this could have been avoided, but the bankers were determined to keep the money. Smarter people would know where and how to spend their money. A regulator that regulates things like loans and hedge funds would have been a great thing to prevent the crisis. Too much emphasis was placed on the issue and too little on the brokers. Additionally, more people would be aware that new financial products are not yet available.
