The Big Short is based upon a nonfictional movie that portrayed the financial crisis between 2007 and 2008. The film not only looks at the events leading to the financial crash, but also examines those who predicted the outcome. A few well-known actors are featured in the film, including Ryan Gosling and Steve Carell. Christian Bale and Brad Pitt also star. The Big Short is the story of four outsiders working in finance. They predict the crash of the stock market, also known as the collapse of the housing bubble. The Big Short exposes Wall Street’s fraud. These firms provided loans to individuals, but they didn’t guarantee that they would get paid back. They don’t know what’s happening around them. The financial system broke when house prices began to drop and people stopped making mortgage payments. There are many ways to approach the scenes and how the housing market crashed. However, it was the catalyst for the Great Recession.
Jared Vennett, also known by Ryan Gosling as Wall Street trader, is cocky. Although he works alongside Mark Baum, he is only interested in making his part of the profits and not about working with him. Jared Vennett investigates Burry’s credit default swap goal. Jared also manages hedge funds. Burry works with Jared to invest in the swap markets. He also watches the CDO and the collateralized loan obligations. CDO puts market risks at risk. Michael says that the housing bubble will cause the economic collapse. Vennett, who learned his analysis from Burry and a banker who sold Burry an earlier swap, understands Burry’s. Vennett used his analytical skills to solve the problems in finance. He was able to verify Burry’s theory. He decided to trade swaps in the market. Vennett made $47 million from selling swaps. He was also the manager of the hedge funds. Michael sees the U.S. housing market as a similar bubble that is inflated by high-risk loans. This causes economic collapse. Michael then devises a way, such as the creditdefault swap, to shorten housing markets. His clients and he start to fight. They get angry. The bank claimed that housing was stable and the market was still rising, which was not true. People began to fear that Burry was taking away their money and started to ask for their money back. He placed a moratorium against withdrawals to stop them from trying to recover their money. He was able to make $100 million for him and $700 million for the investors. He achieved 500% returns to his investors.
Mark Baum is also known by the name Steve Carell in The Big Short. Baum is a blunt and angry manager of hedge funds. He is fed up with Wall Street’s unfairness and wants to end it all. He is determined to get rid of all fake traders. He has been brought in to solve the housing bubble. He does not believe in the Wall Street’s negative portrayals of injustice. Baum is only fair because of his brother’s suicide. He is willing to do whatever it takes for people to be able to enjoy the rights that they have, provided that it is legal. Mark bought swaps from Vennett because of his respect for business models. Baum sees the fraud in Vennett’s companies and realizes how dishonest and conflicting they can be. Then, he purchases loans and waits until the very last minute to make them available for sale. He then spends $1 billion on loans and explains to his bank why they won’t be held responsible for the crisis. In fact, they caused the crisis. Ben Rickert, also known as Brad Pitt and Ben Hockett, is the actor who plays Brad Pitt. He is a trader with Deutsche Bank. Rickert is approached by Charlie Geller, a Charlie Geller investor, and Jamie Shipley, a Jamie Shipley investor. Rickert likes things to be precise and is not always happy. He has a quick temper. Geller, Shipley and Rickert found Vennett’s paper. They brought the Rickert to help. Geller, Shipley and others are hostile to the housing market and make bets. Rickert is furious that they made a profit from the collapse of the U.S. economic system. These two men are making a lot of money, but they don’t realize the risks they’re taking and the impact it has on banks. Shipley and Geller sought to sue rating agencies for misinforming mortgages. This crisis resulted from many different factors. Burry’s actions of corruption over his employees was the key crisis in the film. He suggested the credit default Swap, which places bets on the market to make money. He is very upset by this. He refused to let them sell the property. His bet is accepted by banks, but monthly fees must be paid. He is perceived as a waste of capital by his clients. Market collapses when there are no withdrawal restrictions. Another crisis is when the four main characters in the movie see it coming before it happens. The business world is “to short”. This means to wager that an investment’s value will fall. This prediction was confirmed by the four men. These four men sold securities that were involved in the bubble housing and ended up making a lot more money than everyone else. Wall Street sold all these mortgages to banks by putting them in one basket. Although all the items in the basket were safe, the bank did not have to return any money. The bankers loan money to people who are not financially stable, which increases the risk in the basket. This movie shows how Wall Street bankers were obsessed with making money and lending money to people that weren’t financially stable. Selena was gambling. Half the people believed she would win while half thought her lose. Correct bettors knew that mortgage securities would fail. They did make money. These bankers caused the crisis and were never punished.
The banks could have avoided the crisis by not lending money to people and not ensuring that they get their money back. This would have never happened if bankers were smart. It is possible that this could have been avoided, but the bankers were determined to keep the money. Smarter people would know where and how to spend their money. A regulator that regulates things like loans and hedge funds would have been a great thing to prevent the crisis. They had too much control over the matter and not enough attention to it. Additionally, more people would be aware that new financial products are not yet available.