Just finished this. It was absolute kino. Do you know anything else like it?

I watched it x14 times, this is one of my favorite movies.
>t. Yuro investment bank employee

Structured finance isn’t a complicated concept but you should have a strong knowledge in basic finance in order to grasp some concepts.
I think that the movie tried to give a vague idea on the opaque pricing and complexity of those products.

not complicated at all

basically these complicated financial instruments amount to nothing more than gambling on previous gambles creating huge bubbles and no real value to the economy; this would normally be okay, except lots of shitty people didn't follow common sense rules at the very base level of the markets these gambles were being made on, turning them all toxic; this would normally cause a small recession, but smart shitty people didn't do their job of warning the vast majority of dumbass corpos that make up the financial market that shit was fucked; so everybody kept dancing like nothing was wrong because whatever, shit is so radioactive anyway the world economy would collapse so governments (aka taxpayer money) will bail everyone out; some autist did the math, put on the big short and forced the markets back to reality

Two hours of white men in suits talking about housing mortgage bonds or whatever they called it. Real epic stuff right there.

It was cool seeing Christian Bale playing Pantera's 'By Demons be Driven', albeit badly.

In English doc

It was kino unless you're a brainlet

It is. It displays how real power plays out in the world. The realistic reach of both individuals and systems, how each really affects the world. You come out of the movie a more informed and grounded person. Better equipped to deal with modern life. As long as you don't lap it up like propaganda, your worldview has been refined. Much better than all the capeshit and mcdonald's arthouse that serves only to corrupt and arrest your brain and emotions to the level that of a toddler.

but HOW did it start

Clinton pushing for lenders (Fannie & Freddie) to give loans to people who couldn’t afford them. In the name of ‘equality’

Some of it is stupid like the Margot Robbie scene and the third-wall breaking, but overall its really good. It just shows you very explicitly how the gears of finance work and how emotion and mania are really were the chief drivers of the market.

Even today there is still a lot of money to be made out there if you understand what drives people and know how to find undervalued or overvalued assets.

Lenders gave people money who had no conceivable way of paying it back. That's the simplest explanation.

>1980s Financial deregulation kicks in
>Fast forward to 1990s.
>Clinton repeals Glass Steagall act and allows universal banking.
>Economy is booming, no one really cares about regulation, regulators fall asleep.
>Greenspan (FED chair for 20 yrs) is strong supporter of the “markets fix themselves” doctrine, no one is concerned until shit hits the fan.
>The whole banking industry favors the “originate to distribute” model (basically mortgage loans are repackaged in tradable securities)
>Low interest rate environment
>2/28A mortgaging (2 yrs fixed interest rate, 28 yrs variable)
>Price speculation on real estate
Basically a combination of multiple factors

watch Vice and The Wolf of Wall Street

financial instrument = contract that says if something X happens than party Y has to do Z to party W

gambling = financial instrument can either be fulfilled or not, that is the core gamble i.e. when you take a mortgage you can pay it off or not

gambling on gambling = you take individual financial instruments and put them in packets, it's a way of giving scale and liquidity to the whole economy, that way say a retirement fund could buy a stake in receiving the mortgage payments of an entire housing project, which was perceived as a pretty safe investment, it's still a gamble, but what are the odds of every single person in the housing project defaulting on their mortgages?; the problem is, the more complex this shit becomes, the more difficult it becomes to do your due dilligence to gauge the real risk of the gamble you're making, which is why there are companies that are supposed to do it for you, except in this case they were also shitters

common sense rules = not giving out mortgages of $500k USD homes to janitors

smart shitty people = credit rating agencies, portfolio managers, housing market specialists

vast majority of dumbass corpos = everyone involved in selling these gambles on gambles to other dumbass corpos and the general public, circulating them to the entire economy

successfully shorting = you promise you'll fulfill a future contract at current prices, expecting prices to drop in the meantime, so when it comes time to fulfill the contract you have to buy off the market (at current depreciated prices) and get payed at yesterday's prices (inflated ones), big money is made

deregulation

the financial market not only has no real incentive to police themselves and keep themselves in line (financial players are rarely in a net-negative position in the long-term even with all the recessions), but they are virtually incapable of policing themselves, as their entire energies are put towards frauding/outinnovating regulations to make good short-term money

They literally stop the progression of the movie so some celebrity like Margot Robbie or Selena Gomez can explain it to you like a baby.

Boiler Room, Wall Street

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oh cmon, now, you know who was behind it all

That's Spotlight, not The Big Short.

The collective IQ of Televison & FIlm dropped 20 points on this day

good opportunity to learn

based retard

Hope you niggas are ready for financial crash 2: central bank boogaloo

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I felt big brain watching the movie

t. finance major

yeah the end of the film it says the faggots in charge only put bandaids on the probleb and changed the name of the bonds for something else

I also predict a new 'dot com bubble' in partnership with a housing crash

We're not even close to another tech bubble

P/E ratio of the nasdaq is like 30 or something, during the tech bubble it was 100, the Nasdaq would have to be at 24,000 for it to be another bubble, I wish that would happen then I could buy TQQQ and FNGU and retire early

The next bubble is government debt

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Fair enough. Are you from /biz/?

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Honestly one of my favorite movies, it's phenominal I watch it like once a year and love it more
Spotlight is similar story wise but obviosuly much more somber and serious
Moneyball has a similar tone and is enjoyable Thank You For Smoking

>paul bettany steals the show as usual
That's a weird way to spell Jeremy Irons.

youtube.com/watch?v=Hhy7JUinlu0

They literally pause the movie a dozen fucking times and have a narrator spoonfeed it to you using brainlet analogies.

How fucking dumb does a person have to be to still not understand what's happening?

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>That's a weird way to spell Jeremy Irons.
What accent is he attempting?

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His normal accent.

PE ratio's disregard capital structure and a lot of firms are geared to the fucking teeth.

Things like U.S. car loans or major city housing prices are surely blowing up

These are the people that would get NINJA loans

Cope

tech industry in 2000
>dude you can buy dog food online

tech industry in 2019
>literally everybody uses google, facebook, amazon, ect and they generate hundreds of billions a year in cashflow

Not economics, finance. Tired of people conflating everything money related to economics when economics actually deals with money very little.

>tfw people end up teaching brainlets economics they could have learned from the movie instead of answering the question

I'm not sure what this comment implies.
But U.S. government debt won't be the next bubble. the US can infinitely print dollaroos because it's a world wide currency. Inflation doesn't really matter for USD, it's very much salvagable from a Fed/IMF point of view.

Perhaps other government debt. But basically, western economy is dependent on the US, and they're safe

Margin Call and Wall Street
Blue horseshoe loves Anacott steel

What's up, bro?

t. Accounting major

I'm not him, but he's implying that the tech industries of 2000 and 2019 are not comparable due to userbase.

Whether the tech industry as a whole is going to act as a catalyst for the next financial crisis is irrelevant though, and I do believe he's right that it won't be the catalyst. But since there exists about a hundred different vulnerable catalysts in the US, Europe and China which could all trigger an international crisis, it doesn't really matter where it begins. The tech sector is still going to get hit hard by the domino effect.

Remember that the catalyst of the 2008 crisis was the banking system of Iceland, of all fucking places.

This is your answer OP. Margin Call and The Big Short should always be watched back to back.

Im this poster who originally asserted there will be a tech bubble.
I don't know who the other posters you were arguing with are. My reasoning behind me thinking there will be a tech bubble is because certain companies mainly Uber and Netflix are extremely overvalued and still don't make a profit. So if a recession happened they would be fucked

except social media is like 50% bots, 40% making a living out of selling likes and 10% being cultivated by intel agencies trying to undermine nation-states

i want newfags
(reddit space)
OUT

The real life guy who was played by Steve Carell said that there won't be another mortgage/banking crash. Atleast not in the magnitute of 2008.

There were considerable changes in regulation since then. Nowhere near band aid fix.

wasn't lehman brothers the catalyst?
those companies are investor-backed. They get their funding because of futures prospects. It might be severely overvalued, but if funding stops, the companies just fade away. It's not a bubble burst.

If I were to guess for the next bubble - years of bullish markets/investor behavior just needs to be corrected. I like to think markets will just adjust when it becomes clear fundamental value differs too much from market value. It will be some sort of crash, but current policies keep a lot of big industries from actually *collapsing*

We will soon have a decline in all industries, it's just bearish behavior following up on the bullish behavior. we'll be spared a crash until the next time 2bh. This time markets will simply adjust

Greed, Republican deregulation and the Republican authored Clinton signed repeal of Glass-Steagall.

In essence, conservative economic principles.

>This time markets will simply adjust
:(

currency is essentially a commodity nowadays, and while its a special case with its own rules, it is very much subject to economic analysis

movie is certainly about financials though, not trying to disagree there

This was my first post, so I haven't really been arguing with anyone.

While I agree that both Uber, Netflix and companies like them are symptoms of financial disease, like the other guy pointed out, the tech sector as a whole is in a relatively healthy financial spot. Or in other words, the financial health of the mega corporations is relatively healthy. Retarded services that runs at billion dollar annual losses are essentially just future acquirement-objects for these mega corporations. While it isn't bad for investors, it sure as fuck is bad for our financial system.

>wasn't lehman brothers the catalyst?
Nope, the first domino fell in an Icelandic bank. Lehman and everyone else was just another domino waiting to fall.

Forgot to hit the reply button;

>wasn't lehman brothers the catalyst?

Having a macroeconomic understanding helps to understand the big picture of what was going on in the movie, but that's generally not what people are struggling with. It's the financial fluff and all its jargon that confuses people and that's the real meat of the movie.

To understand the movie, you need to understand finance. To understand the situation, you need to understand economics, macro specifically. Just tired of people equating all money matters under the umbrella of "economics" when economics has very little to do with money at all. Economics is about choices and the effects they have.

economist.com/media/pdf/meltdown-iceland-boyes-e.pdf

You can read a short summary here on how Iceland became the catalyst. That's the thing about black swans. You never know when or where they'll appear. And by the time they have appeared, it's already too late.

is that the one with jerrime irons-that wwas the best

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Bjork caused the crash and the japs did 9/11

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