The Big Short ' Is A Financial Crisis Movie Directed By Adam Mckay

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“The big short” is a financial crisis movie directed by Adam McKay and released in 2015. It bases on a truth story that some smart investors bet against the United State mortgage market in 2006 to 2008. Michael Burry, an eccentric hedge fund manager, discovered with his own research that the United State housing market was a bubble about to burst within in a couple years. He started to bet against the United State mortgage backed securities market by convincing some large banks to create a credit default swap market, which was kind of a bond insurance police, and he invested about $1,3 billion in the credit default swap market. If he was right about the market collapse, his fund would bust up very high and make a hug profit. On the other hand, his fund would be gone if the market stay stable.
Through Michael Burry’s idea and action, the banker Jared Vennett who worked at Deutschebank quickly learned and understood that Burry’s predictions was likely true, and he made himself an opportunity of earning fees on selling those credit default swap to the firms, which the firms could earn profit when the underlying mortgage bonds fail. He came to Mark Baum office and tried to convince him to buy credit default swaps. His explanation about the market collapse would being more perpetuated by the packaging of subprime loans into collateralized debt obligations (CDOs). Through Vennett’s convincing, Mark Baum and his associated started to investigate the Miami housing market. He first

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