The Big Short Movie Essay

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The Big Short Movie Critique The movie that I chose was “The Big Short”. This movie depicts the financial crisis in 2008 and how it came about. Michael Burry, played by Christian Bale, noticed that the housing market was very unstable and had a feeling the market would collapse in 2007 due to high-risk subprime loans. These loans were made to many people that should not have been loaned money at such high interest rates. Burry figured that there was a way he could profit from this. He was to create a credit default in order to short the housing market. Many banks were ready to jump on board with him and that these banks were working with bond rating companies to keep their ratings. This allows the banks to sell any bad loans before they lose on them. Burry’s …show more content…

The investors wanted their money back but Burry placed a suspension on any withdrawals. Jared Vennett and Mark Baum, played by Ryan Gosling and Steve Carrell, noticed Burry’s goal to establish the credit default swap and joined him. The housing market finally collapsed and Burry’s value increased by 489% and a profit of more than 2.5 billion dollars. One of the big reasons he was so successful was due to collateralized debt obligations receiving triple A ratings. These CDOs created a huge risk to the market and financial sectors were crushed by it. The first ethical issue that I noticed when watching this film was greed. In class, we talked about egoism versus utilitarianism. Egoism is doing what is in the greatest good for oneself. Burry clearly allows his greed to bring this out in him as he takes advantage of uneducated people when it comes to investing. This would not have happened if he were utilitarianism. He would’ve done what was best for his investors and would not have taken advantage of these people. Another concept that relates

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