The Big Short, Directed By Adam Mckay

937 WordsApr 27, 20164 Pages
Summary 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. Housing/Financial Crisis of 2008 During the housing/financial crisis of 2008, I was in the 10th grade. My parents did not have bank accounts or owned a home, and I did not watch the news, therefore I did not anything about the crisis. Prior to watching the film, I had no clue it occurred. All of the information in the film was new knowledge. A few terms that were new to me were subprime mortgage, collateralized debt obligation (CDO), adjustable rates and credit default swap. A subprime mortgage is a loan that is offered to people who are not necessarily qualified for a loan, which makes them risky mortgages. Since the lenders are taking on this risk, the interest rates are extremely high to somewhat make up for the risk. A CDO is various pieces of assets that are put together and sold to investors. Assets that are included
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