- Title: The Big Short
- Duration: 123 min
- Country: Estados Unidos
- Director: Adam Mckay
- Script: Adam Mckay, Charles Randolph(Book: Michael Lewis)
- Year: 2015
- Synopsis: Three separate but parallel stories of the U.S mortgage housing crisis of 2005 are told. Michael Burry, an eccentric ex-physician turned one-eyed Scion Capital hedge fund manager, has traded traditional office attire for shorts, bare feet and a Supercuts haircut. He believes that the US housing market is built on a bubble that will burst within the next few years. Autonomy within the company allows Burry to do largely as he pleases, so Burry proceeds to bet against the housing market with the banks, who are more than happy to accept his proposal for something that has never happened in American history. The banks believe that Burry is a crackpot and therefore are confident in that they will win the deal. Jared Vennett with Deutschebank gets wind of what Burry is doing and, as an investor believes he too can cash in on Burry's beliefs.
'Banking and Finance' in the film
"The
Big Short" is a movie with the subject of "Banking
Management" because through with housing bubble is created
financial instruments CDO with a very high percentage subprime
mortgages (which are mortgages with high risks of default to paid)
and the abuse of these financial instruments by banks they made them
fall into bankruptcy, by increasing unpaid mortgages.
We
want to highlight the following scenes
Start
of mortgage rates:
In
this scene appears Lewis Ranieri, who will be the father of mortgage
titles, explaining to a major pension fund company, a new financial
instruments through the union of thousands of mortgages
Subprime:
In
this scene appears "Michael Burry" who discovers as there
are numerous bonds that are with a high percentage of subprime
mortgages and deduces that from 2007 the bonds were worthless, we are
also explained that this was because the banks needed more Mortgages
and as they all had the requirements,the banks assumed mortgages with
high risks, faced with this situation "Michael Burry"
decides to sell short mortgage securities, in other words to bet
against the mortgage market
Credit
rate agency:
In
this scene, Mark Baum (although in real life refers to Steven Eisman)
goes to the rating agency because he does not understand how CDO
products do not degrade in their rating when the delay in payment on
mortgages is on the rise, and discovers how agencies do not
Have Rigor and simply qualify the CDOs as banks want
CDO:
In
this scene Greg Lippmann a brilliant Deutsche Bank intermediary on
Wall Street explains how the CDOs have been formed and they will
become junk bonds, and offers you to use this information for a great
business opportunity.
Synthetic
CDO:
In
this scene we are explained in detail that it is a synthetic CDO, so
Steven Esiman (Mark Baum in this film) realizes the serious financial
situation and sees that in a short time the crisis will explode
Personal commentary
This is a very interesting film from diferent points of view: on how to engage the viewer and, at the same time, on how to deal with complex financial issues. The film succeeds in blending realistic approach with a a great sense of entertainment. 'The
big short' makes us perfectly understand the difficulties of the origin
of the crisis. Definitely, it is a remarkable film, with clear ideas, which gets
what it looks for.
I think that The Big Short is a great movie because of the way it explains the plot. When the story is running and a technical term appears, an indent is made and that term is explained. An example of this is when CDOs are explained and subprime mortgages are defined. I think this is a big point in favour because he uses the right vocabulary and explains the term to those who did not know it.
ReplyDeleteThe Big Short is an interesting and educational film for anybody interested in the 2008 Housing Market Crash.
ReplyDeleteThe story is so complicated, because it requires some understanding of how the housing system worked at the time, which apparently most of the people running the system at the time didn’t even have, so the film ends up teaching the audience how the crash happened.
That sounds boring, but the film does a brilliant job by connecting all the informational pieces with humor. The film accomplishes the very hard task of making the mess understandable.
To sum up, The Big Short is a funny, intelligent, well-acted, and interesting view of the few men able to make money when everybody else was losing money. Everybody should watch this film, because it tells the ever important story of how ignorance caused a worldwide meltdown, and we’re apt to do it again if we don’t learn from our mistakes.
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ReplyDeleteIn my opinion, the Big Short is one of the best financial content films of these years, which is educational for all those who see it.
ReplyDeleteSince, it allows us to obtain knowledge about the outbreak of the real state bubble in the United States in 2008, which is considered the beginning of the great economic crisis that continues today with all its consequences.This is because to differences of other financial films like "Margin Call", it explains in detail the most technical terms can be complicated for the viewer.
In summary, it is a film that I would recommend from which we can learn excellent lessons for both people who have financial knowledge and not.