I'm 40 minutes into this and so far I've only seen white men in suits talking about finance things I have no idea what means.
>subprime mortgage bonds
>shorting housing bonds
>65% AAA rated bonds
What the actual fuck.
And then the movie is made in that obnoxious and quirky kind of way to make it seem like this is really funny and exciting. Does it get any more interesting or can I just turn it off?
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this film literally breaks it all down for retards like you and you still dont get it?
Don't bother. Poor spic retards buy a bunch of houses they know they can't afford and slimy kikes make money off them. White people are blamed.
it's not meant for brainlets
>you still dont get it?
>it's not meant for brainlets
What's there to get?
You literally ask "omg what the fuck is subprime mortgage bonds" when you have actual brainlets in the film like selena gomez explaining it to you like you're a 5 year old.
>pausing mid movie to shitpost on Yea Forums
Is this a meme or do you guys seriously do this?
I always do it.
I only do it when the movie is shit. I need to know if I should waste another 90 minutes on this.
>Poor spic retards
literally overwhelmingly white people
this destroyed white people
it is going to destroy white people again in a few years
you're a degenerate nigger and you should kill yourself. Seriously just do it shill.
I torrented this shit and cut it off right after that guy says " I love my job. I love my job."
I'm a CPA.
There hasnt been a single movie i havent done this for except if im stuck somewhere without /teevee/
Yes it is, the movie literally stops and explains everything for you in a fun and engaging way.
Looks like a good airplane movie or something to have on in the background with company over and you phase in and out of watching. Turn it off if you’re by yourself. Watch No Country For Old Men instead.
It's literally spoonfeeding you everything you need to know. It's tailor made for brainlets.
I have bad news, you might be a brainlet
How am I supposed to keep track of everything when I didn't know anything about mortgage bonds in the first place? I already forgot what Margot Robbie and that chef explained.
What don't you get that some finance niggers gambled on the mortgage market and cause the crash in 2008?
I enjoyed the part where they fail to mention the government mandated the banks give those loans.
Big if true
Give me a quick rundown
I could rattle off terms from my profession and you would have no idea what the fuck I'm talking about either
I only pause my movies to play blackjack with Harry Dean Stanton.
Clinton did it to secure the poor vote by forcing banks to give loans to people to buy houses they could not pay for.
It's simple. A collateralized debt obligation (CDO) is a type of structured asset-backed security (ABS). Originally developed as instruments for the corporate debt markets, after 2002 CDOs became vehicles for refinancing mortgage-backed securities (MBS). Like other private label securities backed by assets, a CDO can be thought of as a promise to pay investors in a prescribed sequence, based on the cash flow the CDO collects from the pool of bonds or other assets it owns. Distinctively, CDO credit risk is typically assessed based on a PD derived from ratings on those bonds or assets. The CDO is "sliced" into "tranches", which "catch" the cash flow of interest and principal payments in sequence based on seniority. If some loans default and the cash collected by the CDO is insufficient to pay all of its investors, those in the lowest, most "junior" tranches suffer losses first. The last to lose payment from default are the safest, most senior tranches. Consequently, coupon payments (and interest rates) vary by tranche with the safest/most senior tranches receiving the lowest rates and the lowest tranches receiving the highest rates to compensate for higher default risk. As an example, a CDO might issue the following tranches in order of safeness: Senior AAA (sometimes known as "super senior"); Junior AAA; AA; A; BBB; Residual.
Both Democrats and Republicans, in both Congress and the Executive Branch, wanted to increase homeownership ("""The American Dream""") among poor people. Therefore, they pressured Fannie Mae and banks to buy more poor-person mortgages. (Fannie Mae got ever-increasing quotas for poor-person mortgages written into the law. The banks were threatened with more regulation, so they did pretty much the same thing, but they technically weren't forced to make more poor-person mortgages.) In turn, Fannie Mae and banks pressured mortgage originators to create more poor-person mortgages.
This was a BAD THING because the mortgage originators ALREADY were making as many high-quality poor-person mortgages as they could. Therefore, when the government imposed ever-increasing quotas for poor-person mortgages on Fannie Mae, the only way it could get those extra mortgages was by pressuring mortgage originators to make shit-quality mortgages.
Eventually, these shit-quality poor-person mortgages failed, ruining the housing market even for the responsible poor people who had high-quality mortgages.
try it. I'd bet money you're a tradesman of some type.
Dude you are fucking retarded if you cant understand the elementary way they explain it all. The most annoying part of the movie was that it catered to smoothbrains like you.
I really liked it. But I'm a finance major, so you're probably just not as into the subject matter as I was.
to be fair, the housing market was already ruined before that point by housing costs spiraling far out of control. Which is what the actions you're describing were an attempt to correct. As there is no good reason for a 1500 square foot shitbox on a 1/10th acre lot to cost $300,000, and as early as the 90s that was considered an affordable home.
>Do you know how the CDOs first came into being? They were A-grade mortgage-backed securities once; taken by the dark powers. Devalued and collateralized, a ruined and terrible form of tranche.
>these shit-quality poor-person mortgages failed
What does that mean, "failed"
I work in REO in the DC area. Statistically black and latinos were much more likely to default and lose their homes due to these idiotic mortgages. I see the names of the defaulters for my work
Meaning the mortgage was not paid and the homeowners defaulted and lost the home
I'm missing something, clearly. So poor people get affordable-ish mortgages to get homes, then stop paying and lose their homes. So how does this affect the ones that did pay?
I LOVED THE BIG SHORT!!!
People paying their mortgage were not affected by non-payers. The overall economy was effected when bad mortgages were bundled and I think sold as securities (which I don't know anything about). These mortgages affected normal people by radically inflating housing prices
This film was MADE for retards like you, and your adhd-riddled brain still can't stay focused for more than an hour, fucking child.
okay, people who didn't pay got fucked.
people who did pay were fine.
new people who hadn't started paying couldn't afford new house prices and continued to live with mom and dad?
so who got fucked that didn't deserve to get fucked that I should be upset about?
>so who got fucked that didn't deserve to get fucked that I should be upset about?
Anyone with investments in mutual funds, be it through pension or anything else.
IMO they should have told the viewer why nobody was worried about CDOs. They're packages of mortgages from different states, nobody expected the housing market to crash everywhere at once
How did michael burry buy credit default swaps when he didn't have the underlying bond?
Swaps are derivatives that are generally positions used for hedging, no underlying asset needed.
Housing has been thought of as expensive as early as Nixon, who was the first president to tackle 'affordable housing'. And that's just houses, not including rent control. Every attempt to make housing cheaper results in either less housing and/or higher prices.
>I already forgot what Margot Robbie and that chef explained.
In this case, friend, the situation is pretty self-explanatory, isn't it?
No Fannie Mae and Freddie Mac were created bc POC couldn’t buy homes.
Black people have no business owning homes.
Take a finance and/or an accounting course and suddenly it makes a lot more sense and is actually enjoyable. It's not really enjoyable or truly understandable if you're financially illiterate, but it is if you are.
they did though. no one was worried because the accreditation rankings were corrupt.
or was that something different.
Based Clinton in 1996.
take a look at all those fucking words
It is litterally explaining jewish tricks. Pay attention retard
People who were invested in the securities the mortgages were bubdled into. many of these had risk ratings much worse then what was shown.
The whole "too big to fail" mindset of Goverenment interference in the markets is what actually causes bubbles in the first place and leads to banks giving loans they never would have. Ironically if regulations werent so tight around housing, most people could easily afford some sort of domicile. Fractional reserve meme money also causes hyperinflation and fucks with everything. Basically you'red Jewed to the core no matter what, especially as the party that's meant to be into the whole fiscal responsibility also hardcore push the whole sticking their cock into markets thing.
Wrong
It's fucked from cia niggers moving the market out of equillibrium at every possible chance. Literally doing nothing would actually allow it to relax, rather than actively doing everthing you can to fuck it up.
it's a terrible movie and steve carell needs to stay in comedies
>watched two weeks ago
>still don't know what the fuck happened
so let me get it straight, some eccentric guy finds out that housing loans are shitty and predicts the financial crisis, shorts it, and makes shitloads, but apparently wall street did it on purpose?
I talk to people about this movie, and nobody remembers the explanations. They just remember woman in bathtub talking about uhhhh finance
ADMIT IT! This movie showed that type of fun exposition to be a total failure in getting people to remember things!
Yep. The book goes into more greater (dryer) detail but that's basically the gist of it.
>poor spic retards
Literally white whores also buy them. Nobody blames "white people" in the movie, /pol/tard. They blame the irresponsible fucks in charge.
>I don't understand, therefore, bad movie.
>And then the movie is made in that obnoxious and quirky kind of way to make it seem like this is really funny and exciting.
It was funny and exciting, though.
here, read motherfucker
en.wikipedia.org
>apparently wall street did it on purpose?
no, the idiots on Wall Street can't look farther than the next closing bell.
literally disgusting
They took 10 minutes to explain this at the start.
You understand thousands of teenagers watched this and completely understood it. It's partly responsible for the rise in underage trading subcultures on the internet.
The swap works by trading one clash flow for another. I assume he was just paying standard interest rates.
>and my tax
Nice dubs Terry
It was a comedy
So why wasn't it funny?
>Literally doing nothing would actually allow it to relax, rather than actively doing everthing you can to fuck it up.
but then how is some suit in NY supposed to make money?
Still confused. To my understanding credit default swaps are essentially insurance premiums if an underlying asset defaults, for example a bond. Let's say a company purchases a bond and are worried the bond seller might not pay the principal at the maturity date, they would buy credit swaps as an insurance blanket while still holding the underlying asset (bond). I'm just confused how Michael Burry can insure an asset he doesn't have control of.
Just to clarify if I understand the big picture. Banks issue mortgage loans to homebuyers. Instead of holding these mortgages they decided to sell them to investment bankers on Wall Street. Wall Street groups them all together called CDO's and sells them to various investors in various tranches depending on the risk.
The new generation of would-be homeowners and their moms and dads seem pretty fucked in this scenario desu
You don't need to hold the underlying to buy a CDS if there's a seller.
To put it simply Burry purchased insurance on the mortgage CDO's. Why wouldn't he be allowed to purchase this? It's up to the broker to decide if they want to write a contract or not, and from what you've seen in the movie they thought Burry was an idiot.
Debt collection agencies buy debt at a reduced rate (in theory getting a good deal) because their organization is set up to collect on debt in mass. This benefits the bank because it must be cheaper than having an in house team (which they do to some degree).
The CDO's are more complex than the film makes out but that's the gist of it. The debt is pooled and the institutions holding the assets began writing derivative contracts like crazy.
That's what I'm trying to understand, the specifics of parties involved in the CDS contract. What were the specifics of the contract? Upfront payments? When Burry made premium payments to Goldman Sachs did they take that money and pay someone else?
They were given mortgages that they were unable to afford, on a massive scale nationwide. Eventually they went into default and lost their homes because the agencies that were supposed to figure out whether people should get loans in the first place said fuck it and gave them out like candy.
>not being able to watch a movie for over 40 minutes without posting on Yea Forums
Just accept that you're a brainlet and stick to Transormers and capeshit.
like another nigger pointed out, the "problem" is if housing becomes cheaper, there will be fewer profit seeking entities building houses, which would cause existing houses to increase in value due to scarcity, which would create more house builders expecting that new higher price point for their shitboxes, etc.
Which means the problem is capitalism itself, and the housing bubble was, fundamentally, capitalism itself failing as a result of regulatory bodies attempting to make a capitalistic enterprise more fair to more people. So the lesson is attempting to lessen the inherent predatory nature of capitalism makes it more predatory and causes it to implode.
I want to prone bone margot. Fuck her little ass
I had multiple people try to sell me subprime mortgages before the collapse. Literally sell, like it was a fucking toaster or something. The common phrasing was, from multiple people working at different banks, "the payments will adjust to your lifestyle." If you're poor, you've had life smack the shit out of you a huge number of times so the idea being sold is that, when life fucks you up again, you won't lose the house because the payments will "adjust" to your now shittier life. So they were selling subprime loans as a safety net rather than delayed financial suicide.
Watch the superior Marchin Call instead
you're pretty dumb, aren't you?
I can't stand being away from Yea Forums more than an hour
OP, since you're such a brainlet, you should stick to brainlet movies like PeeWee's Big Adventure.
Big brain movies aren't for everyone.
from my understanding GS & co were profiting both from holding the CDOs and collecting the insurance premium.
holy shit OP really is a fucking moron huh?
Yeah, a movie about the financial crisis is some really smart stuff.
For me, it's Margin Call
I'm getting the impression that none of you attended an elite prep school or ivy league university.
Still studying finance or got a job yet?
OP I am in fucking awe of your skills.
>Richard Severin Fuld Jr. (born April 26, 1946) is an American banker best known as the final Chairman and Chief Executive Officer of Lehman Brothers. Fuld had held this position since the firm's 1994 spinoff from American Express until 2008. Lehman Brothers filed for bankruptcy protection under Chapter 11 on September 15, 2008,[5] and subsequently announced a sale of major operations to parties including Barclays Bank and Nomura Securities.
>Fuld was nicknamed the "Gorilla" on Wall Street for his competitiveness.[6] Condé Nast Portfolio ranked Fuld number one on their Worst American CEOs of All Time list, stating he was "belligerent and unrepentant".[7] Fuld was also named in Time magazine's list of "25 People to Blame for the Financial Crisis".[8] Furthermore, CNN named Fuld as one of the 'Ten Most Wanted: Culprits' of the 2008 financial collapse in the United States.[9]
>Fuld was born to a Jewish family in New York City, the son of Richard Severin Fuld Sr. and Elizabeth Schwab.[10]
Why wasn't Fuld mentioned in the movie if he had so much of an impact?
>screenwriter
>kino
>post-production
feel dumb yet?
bank gud
gubamint bad
ooga booga
The government eventually used public money to make the bankers richer. And that money came from your moms and dads to put it simple.
Looks like the thread is getting filled with Mises fanboys
im french i remember when this was first released under the name " la grande casse "that can be translated in english as " the big breakage". so i watched it in movie theater and bcs of the casting and the title everyone was expecting an action film ... half of the theater was emptied in the first 30 min, we were about 10 ppl to finish the film.
ps: i also didn't understand anything
I'm a brainlet, who paid Ryan Gosling character at the end actually? His bank or Steve Carrell's firm?
So are inherently fuck by capitalism if didn't win the birth lottery? I really don't like the other options.
His bank.
I like watching this movie because it makes me feel like a badass rich stock trader who prints millions of dollars per year in his basement
What surprised me the most is how many people got off with a slap on the wrist. These people fucked your country much more than any terrorist and you reward them by giving them more money.
He didn’t really has anything to do with what the movie was talking about. Sure he overleveraged his bank and that’s dumb but there’s another movie based on that (Too Big to Fail) and another pretty obviously based on it (Margin Call)
Welcome to the layercake son
these dubs
Few guys managed to win tons of money because they saw the crisis coming. Jews got fucked but government quickly used public money to save them (still letting few like lehman brothers collapsing)
Your mom and dad and pretty much the rest of the world get fucked with tax increases or job's pay stagnating or pension freezing.
And at the end, jews are starting again with their bullshit and another bubble is about to collapse repeating the cycle once again.
>Poor spic retards buy a bunch of houses
oh man so much misinformation
his bank, he gets stone-cold commission cash for starting the trade with Frontpoint (Carrell's firm). That's why he talks to vinny about how, at first, he's gouging him, and his whole spiel about the sundae, since Frontpoint has to pay a premium on a monthly(?) basis for the CDS
You... you really don't believe this, do you? If true, then you are dumber than those "spic retards".
Failing to even try to comprehend the basic mechanisms behind the most important event of the XXI century that so far has caused a major eruption of socio-politico-economical shifting globally, only proves that you're a mental lowlife.
What about second bailout?
the fact you wrote that post out, looked at it, and said "yep, das gud" then hit submit indicates the main thing fucking you is the fact you're retarded.
The Big Short is absolute Kino though, you have shit taste OP, as always.
Its not just this movie
>The Wolf Of Wall Street: Jordan Belfort (frauds over 100 millions ; Belfort was born in 1962 in the Bronx[3] borough of New York City to a Jewish family.[6][7][8]): played by Leonardo DiCaprio (goy)
>Boiler Room: Michael Brantley based on Jordan Belfort (see above): played by Tom Everett Scott (goy)
>The Big Short: Mark Baum based on Steve Eisman (Jewish, emerged from the financial crisis of 2008 with millions in the bank), Jared Vennett based on Greg Lippmann (Jewish): played by Steve Carell (goy) and Ryan Gosling (goy)
>Wall Street: Gordon Gekko based on Michael Milken (Milken was born into a middle-class Jewish[10][11][12][13][14]) and Ivan Boesky (Boesky was born to a Jewish family[1][2] ; both sentenced for insider trading): played by Michael Douglas (g... Jewish?!)
>Margin Call: John Tuld based on Richard S. Fuld (Fuld was born to a Jewish family in New York City[10] ; filed for bankruptcy while pocketing 500 million for himself), Lehman Brothers chairman (Henry Lehman,[13] the son of a Jewish cattle merchant): played by Jeremy Irons (goy)
>Too Big to Fail: Richard Fuld (see above): played by James Woods (goy) ; Ben Bernanke (Jewish[8]): played by Paul Giamatti (goy)
>Billionaire Boys Club: Ron Levin (stole 4 millions dollars from a Ponzi Scheme group ; third son of a Russian-Jewish immigrant): played by Kevin Spacey (goy)
>Mad Men: Don Draper based on Albert Lasker (Lasker was born to a Jewish family[1] ; considered to be the "father of modern advertising", helped sell American Tobacco's Lucky Strike brand to women by promoting it as a weight-loss method): played by Jon Hamm (goy)
>The Wizard of Lies: Bernie Madoff (born in Queens, New York, to Jewish parents ; largest Ponzi Scheme in history: 65 billion): played by Robert De Niro (goy)
>The Smartest Guys In The Room (doc): Andrew Stuart Fastow (chief financial officer of Enron Corporation ; He grew up in New Providence, New Jersey, the son of middle class Jewish[5][6][7])
Its part of why the US is so fucked right now. Its not particularly supposed to entertaining more than enlightening. Ignoring shit like this makes you dumb slave.
Quick reminder we're about to relive this again. But worse.
its just going to be the full scale collapse of capitalism. the housing bubble was just a foreshock.
did you just write out something claiming a number of the most successful/desired actors working weren't Ashkenazim?
>people get mortgage loans for their houses
>mortgage loans are handled by individual regional banks
>large banks figure out how they can "handle" the loans and make tons of money
>start packaging housing mortgage loans together in huge chunks
>if debtors fail to pay back their housing loans and default, the rest of the loans cover the losses
>the more senior parts of the loan chunks are less affected by the losses due to being the primary investors of the chunks
>loans are packaged into housing bonds based on how risky the loans are for defaulting
>many large banks invest heavily in individual chunks of varying rating risk
>tons of other organizations also invest as more junior partners
>a high demand for loans is created from this
>risky loans increase in number due to the "pure profit" from them for the banks
>banks start betting on the actual housing loan chunks to make even more money
>people see this is very unstable and start shorting the bonds that these banks have
>amount of people defaulting loans increases substantially with more risky loans being pushed heavily
>housing bonds market is propped up before collapse through questionable means
>housing bonds market collapses after huge amount of defaulted loans
>those shorting the bonds make tons of money because the bonds plummet in value
>banks lose billions of dollars, others connected directly/indirectly to housing market investments lose millions to billions
>government bails out banks and other companies involved to prevent second depression
>executives of banks act like nothing really happened to their assets afterwards
>doing more or less the same thing today (but it is more secured)
this is pretty much what happened
If you still don't understand, you will be working for other people the rest of your life
you're always working for other people yo
>I'm 40 minutes into this and so far I've only seen white men in suits talking about finance things I have no idea what means.
The film goes to lengths to explain it all clearly and simply. You are confirmed for brainlet sub-60 IQ kys
How old are you? Maybe you are just young or female. If youre an adult and dont understand it then thats bad and youre probably a socialist or not white
It's explained in the film dumb dumb.
they got off without criminal charges because there's no laws for what they did. the people who got the loans signed off on the crazy interest rates on things they clearly couldn't afford.
usury is illegal yo.
I watched this movie the day after doing MDMA and I didn't retain a word.