The Big Short: The Big Short Film Review

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The Big Short is a film, that was released in 2015. The movie highlighted the credit and housing bubble collapse, which occurred in the mid- 2000’s (starting in 2005). In the film, four outsiders, which included a hedge fund specialist, a banker and a Wall Street investor predicted that the housing market would crash in upcoming years and decided to bet against it. Until the collapse, the housing market was seen as one of the most stable parts of the economy, so to bet against it was simply insane. However, these outsiders essentially saw what the big banks and Wall Street investors failed to see, which was that the housing market was prompted up on bad loans.
To summarize the film, Michael Burry (Christian Bale) was an ex- physician, who turned into a hedge fund manager. He had autonomy and freedom within the company to make decisions, so he bet against the housing market. Burry believed that the housing market would crash because it was built off bad loans given out to people who couldn’t afford to keep up with the loan payments, which would eventually cause the housing market to collapse. Burry, knowing this information, made an offer with the banks that if the
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To put it simply, banks gave out mortgages to people who didn’t qualify and couldn’t afford to keep up with the payments, then banks bundled the mortgages into bonds and sold them to top investors and financial institutions that were told were safe and secure investments. The bonds quickly lost their value when they were not getting paid and this caused huge investment losses from the top financial institutions. This quickly turned into a domino effect, which caused the entire economy to suffer big. People in turn lost jobs, houses and money because these big financial institutions went
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