What are your take aways from "The Big Short"

5 Replies

This was a very creative,  insightful and tragic movie. I'm interested to learn from those who have seen it, what impact this movie had on them. 

For myself it is the fact that only one trader was convicted and went to jail out of the thousands of Jr. and Senior executives at the banks and securities firms who caused this calamity. Make no mistake, Wall Street set the  underwriting guidelines for  the lenders to  follow. Our Department of Justice,  under the leadership of Special Prosecutor Lenny Breuer  and FBI, failed to bring to justice these greedy, self serving people. 

AND  guess   where Lenny Breuer now works? He's back in private practive representing the very same companies he could have prosecuted with a nice 4 million a year salary. That's the way it works now in Washington. The fats cats are on a free ride...............so be prepared for their greed to cause more havok one day when we least expect it. 

Ive not seen the movie, but Ive read the book. Im not one to thing Washington is corrupt....just dysfunctional.  Who is going to turn down a huge salary like that after coming from government service? Hardly anyone. You take a lower salary to work in the public sector, you develop an expertise then that the private sector is willing to pay for.  It is just good business sense. That's just life here in DC.

The biggest point I got out of the movie is that there is always someone betting against all odds. It may be a genius who has analyzed the markets for years, or it might be 2 kids right out of college who caught wind of an idea.

Either way, there is opportunity anytime that you go against the grain. At the very least you will learn a hard lesson from those decisions.

Also, the lack of banker jail time is ridiculous but thats what happens when we elect the same congress that has a 9% approval rating.

Originally posted by @Scott Raley :

This was a very creative,  insightful and tragic movie. I'm interested to learn from those who have seen it, what impact this movie had on them. 

For myself it is the fact that only one trader was convicted and went to jail out of the thousands of Jr. and Senior executives at the banks and securities firms who caused this calamity.

They were 50% off the problem. No one put a gun to stupid peoples heads to force them to borrow money they couldn't afford to repay.

I do agree to some extent with your comment Scott Carder. Let me start by stating, I'm a huge believer in personal responsibility. But the financial melt down  began on Wall Street and the halls of Congress. Many of the worst loans; negative amortized, balloon payment loans, etc were presented as viable  loans to people who could not afford them. Many borrowers  were sold on the promise that real estate values would  continue to go up and that they could then refi into  better loans in the not too distant future.  If someone is willing to lend you money to buy a house (the american dream) with poor credit,  little or no money down, and no verification of income,  alot of people will grab at that opportunity.  I call it preditory lending fueled by greed on Wall Street and orchistrated by a government asleep at the wheel who eased lending guidelines in the name of "fair opportunity". Not everyone can afford to buy a house and alot  people were buying houses they had no business buying. 

These poor quality loans proved to be the sunami that  everyone around the world felt the affects of. Roughly 5 trillion dollars of wealth were wiped away. Our National Debt stood at 9 Trillion in 2008 and it now stands at 18 Trillion. The taxpayer and the little guy once again get the shaft , while Wall Street laughs all the way to the bank