ONE’S WEAKNESS COULD BE OTHER’S STRENGTH
“The Big Short” is an adaptation of Michael Lewis’s best-seller of the same name. The movie narrates a handful of the main players in the creation of the credit-default swap (CDS) market who attempted to bet against the collateralized debt obligation (CDO) bubble and thus ended up obtaining a financial advantage from the global catastrophe of 2007–08. The movie primarily focuses on the eccentric nature of the type of person who bets against the market or goes against the grain.
Adam McKay, the director of “The Big Short” realizes the fact that financial jargons and the chronology of the financial calamity is highly complex and intricate for conventional audience to grasp in a two-hour movie. Thus, he utilizes a effortless, yet aesthetic approach for describing the tools, from, credit-default swaps, subprime mortgages and tranches to collateralized debt obligations (CDOs) and mortgage-backed securities (MBS) that caused the global economy to take a downward plunge.
The story introduces itself by unfolding the work of hedge fund manager Michael Burry (played by Christian Bale), who identifies that
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Hedge fund manager Mark Baum (Steve Carrell), pertaining to his skepticism in the system, unites with Burry in investing in the credit default swap market. Extreme greed, conflict of interest and deceptive activities in the market induces him to bet against the market and simultaneously exposes him to great unease over the repercussions of housing market crisis. He identifies that defectively structured loan packages known as collateralized debt obligations (CDOs) have been rated AAA’s and are intensifying the mortgage dilemma. Baum awaits the last minute sell and leaves with his fund value reaching at USD 1 billion. Jared Vennett on the other side, makes USD 47 million in
Jake Clawson Ethical Communication Assignment 2/13/2014. JPMorgan Chase, Bailouts, and Ethics “Too big to fail” is a theory that suggests some financial institutions are so large and so powerful that their failure would be disastrous to the local and global economy, and therefore must be assisted by the government when struggles arise. Supporters of this idea argue that there are some institutions that are so important that they should be the recipients of beneficial financial and economic policies from government. On the other hand, opponents express that one of the main problems that may arise is moral hazard, where a firm that receives gains from these advantageous policies will seek to profit by it, purposely taking positions that are high-risk, high-return, because they are able to leverage these risks based on their given policy. Critics see the theory as counter-productive, and that banks and financial institutions should be left to fail if their risk management is not effective.
Many people today would consider the 2008, United States financial crisis a simple “malfunction” or “mistake”, but it was nothing close to that. Contrary to what many believe, renowned economists and financial advisors regarded the financial crisis of 2007 and 2008 to be the most devastating crisis since the Great Depression of the 1930’s. To make matters worse, the decline in the economy expanded nationwide, resulting in the recession of 2007 to 2009 (Brue). David Einhorn, CEO of GreenHorn Capital, even goes as far as to say "What strikes me the most about the recent credit market crisis is how fast the world is trying to go back to business as usual. In my view, the crisis wasn't an accident. We didn't get unlucky. The crisis came because there have been a lot of bad practices and a lot of bad ideas". The 2007 financial crisis was composed of the fall of many major financial institutions, an unknown increase in mortgage loan defaults, and the derived freezing up of credit availability (Brue). It was the result from risky mortgage loans and falling estate values (Brue) . Additionally, the financial crisis of 2007 was the result of underestimation of risk by faulty insurance securities made to protect holders of mortgage-back securities from risk of default and holders of mortgage-backed securities (Brue). Even to present day, America stills suffers from the aftermaths of the financial crisis.
The Sound of a Voice by David Henry Hwang is a play that tells the story of two people embroiled in a love affair that is marked by secrets, emotional distance, dishonesty, and ultimately, tragedy. The two characters, a Japanese man and woman who are probably both in their fifties, fall in love but do not even reveal their names to each other. The nine acts of The Sound of a Voice are set entirely in the woman's home.
The years 2008 shined a light on a group of people who were considered high society. When the stock market crashed in September 2008, the world shines a spotlight on the financial corporation. Words such as hedge fund manager and financial instrument such as credit default swaps are not words not known to everyday citizens. The economic downturn forced society to ask question not normally asked.
In the movie A Beautiful Mind, the description of schizophrenia is shown in many accurate ways. The Diagnostic and Statistical Manual of Mental Disorders (DSM) states that the symptoms of this disease are delusions, hallucinations, disorganized speech, or unorganized or catatonic behavior. People with schizophrenia are also socially withdrawn and awkward when in contact with other people. These traits of the sickness are shown in detail throughout the movie by way of the character John Nash’s struggle with the disease. Nash is a very intelligent professor but believes he is working with the government to foil a Soviet attack plot. Nash eventually goes onto win a Nobel Prize for one of his theories. The movie shows the effects of schizophrenia on not only one man, but also on the friends and family of the ill individual. Treatment is discussed but not to any great length due to him ignoring the doctor’s orders on medication. Overall the movie shows some very prevalent traits of the disease in great detail during certain parts of the film.
Antisocial personality disorder is a personality disorder marked by a general pattern of disregard for a violation of other people’s rights. Explanations of antisocial personality disorder come from the psychodynamic, behavioral, cognitive, and biological models. As with many other personality disorders, psychodynamic theorists propose that this disorder starts with an absence of parental love during infancy leading to a lack of basic trust. In this view, the children that develop this disorder respond to early inadequacies by becoming emotionally distant, and they bond with others through use of power and destructiveness. Behavioral theorists have suggested that antisocial symptoms may be learned through modeling, or imitation. As evidence, they point to the higher rate of antisocial personality disorder found among the parents of people with this disorder. Other behaviorists suggest that some parent’s unintentionally teach antisocial behavior by regularly awarding a child’s aggressive behavior. The cognitive view says that people with this disorder hold attitudes that trivialize the importance of other people’s needs. Cognitive theorists also believe that these people have a genuine difficulty recognizing a point of view other than their own. Finally studies show that biological factors may play an important role in developing antisocial disorder. Researchers have found that antisocial people, particularly those with high impulse and aggression, display lower serotonin activity and has been linked this same activity with other studies as well.
In this presentation, I’m going to explain how the key roles worked together to create the 2008 financial crisis.
On September 11th, 2001 at the World Trade Center 2,749 people were killed when hijacked American Airlines Flight 11 and United Airlines Flight 175 were crashed into the north and south towers. 412 of them were rescue workers who came to help. 147of them were passengers or crew members on the two flights. 102 Minutes by Jim Dwyer and Kevin Flynn, the title referring to the time between when the first airplane hit the north tower and the south tower collapsed, tells the stories of what is happening inside the Twin Towers on September 11th and the fight for survival under unimaginable conditions.
Michael Lewis is the author of “The Big Short: Inside the Doomsday Machine” and Lewis’ main theme, or the main point, that he is trying to get across is how the 2008 financial crisis came to be, who saw it coming, and how people reacted. Lewis has experience with Wall Street and has worked for Salomon Brothers when he was younger. Today, Lewis is an American non-fiction author and financial journalist. There were three things I highly enjoyed “The Big Short”: the character development, themes, and personalization.
One main idea of this book was that with the right mindset anything is possible. This is proven in the book when Louie is in the concentration camp and has to hold up a large piece of wood while having the Japanese guards stare at him. This shows that he had the mindset that he could outlast the guards and that he could overcome any obstacles in life.
He is one of the few that understands Burry’s plan and quickly acts on it. By a simple misplaced phone call, Vennett is introduced to Mark Baum who is played by Steve Carrell. Baum is Front Point hedge fund manager. Vennett’s witty pitch to Baum and his team is a comedic where he explains on why the housing market will crash. According to WIKI, “Vennett explains that the market collapse is being further perpetuated by the packaging of subprime loans into collateralized debt obligations (CDOs) large enough to be considered AAA
Unbroken by Lauren Hillenbrand is written about the perspective of a young Olympic runner named Louis Zamperini. He is from Torrance, California. Life for him was normal until the he was called into service for his country. It was then when one of his most unforgettable experiences developed.
The "subprime crises" was one of the most significant financial events since the Great Depression and definitely left a mark upon the country as we remain upon a steady path towards recovering fully. The financial crisis of 2008, became a defining moment within the infrastructure of the US financial system and its need for restructuring. One of the main moments that alerted the global economy of our declining state was the bankruptcy of Lehman Brothers on Sunday, September 14, 2008 and after this the economy began spreading as companies and individuals were struggling to find a way around this crisis. (Murphy, 2008) The US banking sector was first hit with a crisis amongst liquidity and declining world stock markets as well. The subprime mortgage crisis was characterized by a decrease within the housing market due to excessive individuals and corporate debt along with risky lending and borrowing practices. Over time, the market apparently began displaying more weaknesses as the global financial system was being affected. With this being said, this brings into question about who is actually to assume blame for this financial fiasco. It is extremely hard to just assign blame to one individual party as there were many different factors at work here. This paper will analyze how the stakeholders created a financial disaster and did nothing to prevent it as the credit rating agencies created an amount of turmoil due to their unethical decisions and costly mistakes.
Eight years ago, the world economy crashed. Jobs were lost, families misplaced, hundreds of thousands of people left shocked and confused as they watched the security of their world fall to pieces around them. In, “The Big Short,” a film directed by Adam McKay and based on the book written by Michael Lewis, viewers get an inside perspective on how the financial crisis of 2008 really happened. Viewers learn the truth about the unethical actions and irrational justifications made by those who unwittingly set the world up for failure. Two main ethically tied decisions are brought into question when watching the film: how could anyone conscionably make the decision to mislead investors by misrepresenting mortgage backed securities (MBS), and why
Morgenson, G. (2005, September 17). Clues to a Hedge Fund's Collapse. In The New York Times. Retrieved November 1, 2013