Essay On The Big Short Movie

The movie takes place in the early 1990’s, when Jordan Belfort partners with Donny Azoff to start his brokerage firm, Stratford-Oakmont. After the introduction given by Jordan, we follow his life from the time that he is 22 years old when he had just started on wall street, all the way to the time of his arrest. Throughout the movie, you can see Jordan’s narcissistic personality aid him in his rise to the top and eventually lead to his fall.

After the optimistic forecast from the realstate that the houses value were going to increase, many institutions started to make adjustments to take profit from this trend. In some cases, prime mortgages were allowed for subprime borrowers to take. This might look like a great idea to financial institutions because the house values were rising: if a people (who in the first place couldn’t afford a house) stop paying their mortgages then the bank could sell the house for a value greater than the one at the moment of default. Everything was going well, so how is it that the crisis unfolded? Well, these institutions wanted to make more profit

They never realized that they were using their home as collateral or that the documents were applications to secure equity loans, line of credits, and modifications. It was proven that many could not read or write. Nevertheless, the banks were able to move forward with the foreclosures and the victims lost their home to either the bank or the contractors. Despite the clear demonstration of criminal activity, no arrests were made and very few consequences directed toward those licensed to uphold the highest standards and to protect the consumer. The fraud and abuse was so widespread throughout the entire real estate industry. Mortgage and real estate brokers, roofers, contractors, surveyors, inspectors, and bankers; there was definitely enough blame to go around.

The Divide by Matt Taibbi In The Divide, it covers the major differences between the very high wealthy and the lower class. HSBC is the first thing that the book starts discussing. The company admitted to stealing around seven billion dollars.

The Big Short is based on a real life story that is about the 2008 financial crisis which was a result of housing bubble. Sadly, unethical choices made by bankers, financial institutions and rating agencies led to a crisis that hurt the World economy badly. The main ethical business dilemma is that many people were aware of the potential risks; however, they preferred to avoid the truth, and play stupid. There are many dilemmas throughout the movie that support this finding.

Hello Carlos, Brendan, Blaine, good presentation on the Dodd-Frank Bill. It’s good to know that our legislatives is taking an active role to prevent another crisis similar to the “Great Recession”. I didn’t have a good understanding of CDOs, collateralized debt obligation of mortgages and loans, and Swaps, however, after the discussion and comment from professor Thosar, I had a new appreciation for how the Dodd-Frank Bill is trying to protect us, the consumers. Also, I believe the oversight council was a key point to oversee all the activities from the various agencies.

Lewis starts by discussing Eisman, who was a main who did his research. He predicted many failures within the market before the subprime debacle. He had Daniel help him to catch on to the subprime market deteriorating, and Lippmann helped him to discover the value in short selling the credit default swaps. The original intelligence and keen observation of the usefulness of this technique would be Michael Burry. He convinced Sachs and Deutsch to bring credit default swaps into the subprime market.

Loans that have been securitized by banks were readily sold to Fannie Mae and Freddie Mac in large pools where it has become obvious that Freddie Mac and Fannie Mae were turning a blind eye as to the quality of the mortgages they were purchasing. This became evident with the complete breakdown of the mortgage industry even though regulations were in place to serve the public Fannie Mae and Freddie Mac was supposed to be watchdogs for the industry but any and played a vital role in contributing to what is become known as the great recession. It is important to mention that very little has still been done to these institutions and they are still buying the same low quality paper that got them into trouble in the first place.

Moody’s did not necessarily commit any crime. However, their rating of mortgage-backed securities is what caused the interest of investors to decrease and the demand for more securities to increase.

Another reason nobody believed Michael Burry and Steve Eisman was because of the fraudulent economic activity taking place in the rating agencies. The biggest criminal act performed by the rating agencies was misjudgements in their ratings of CDOs or collateralized debt obligations (Weisberg). The CDOs were structured obligations, with several tranches of differing risk characteristics. The senior tranche had first claim on the mortgage interest and principal paid by the subprime mortgages in the mortgage pool backing each CDO issue (Poole). However, CDOs now are being used to take a bunch of BBB and BB loans that didn't sell and repackaging them and turning it into a whole other mortgage bond at 95% AAA rated by the rating agencies. This is

Michael Lewis puts together one of the best analysis of the transgressions and missed signals that occurred in the most recent financial crisis in his book The Big Short. The Big Short tells the story of a handful of investors that foresaw and used the 2008 financial crisis to make fortunes off of its collapse. Throughout the book, time goes back and forth as Lewis changes between the main characters and their experiences within the financial crisis.

The film the Big Short, directed by Adam McKay is about the financial/housing crisis of 2008. The film explains how the history of the housing market, how the crisis began, and introduced all of the people and companies involved. The most important aspect of the movie was that the crisis was foreseen, but nothing was done to prevent it. The three main characters are Michael Burry, Jared Vennett, and Mark Baum. Burry was the first to recognize the faulty practices of the housing market, and bet against the market. His actions caught the attention of Vennett and Baum, which led them to investigate the housing market, and bet against it as well.

Critics charged that they made complex however inconsistent models to ascertain the likelihood of default for individual mortgages too for the securitized items made by packaging these mortgages. Raters esteemed a large portion of these organized items best level AAA material amid the lodging blast,causing strong downsize them when the housing bubble

Good Will Hunting is the graceful tale of a young gentleman’s struggle to find out where he belongs in the world, by first finding out who he himself is. In this film, Matt Damon takes on the role of a disturbed genius that has a keen understanding of the deepness of human character. The film is a voyage through the mind of Will Hunting as he is required to undergo psychotherapy as an alternative to serving jail time. With the assistance of a psychologist, played by Robin Williams, Will learns about himself and recognizes his individual worth in the world by comprehending what is most important to him in his own life. This motion picture serves as a source of superb example for film technique. Gus Van Sant’s directing ability joined with

Another key event described in “The Big Short,” was when American International Group found a way to insure subprime mortgage loans while being able to bury these risks on its balance sheet. This was made possible by the fact that AIG was a triple-A-rated corporation with an enormous