The Big Short is absolutely one of the best financial movies I’ve watched in a long time. It’s right up there with Glengarry Glen Ross for sales people, and 99 Homes for the real estate crowd. The Big Short features some pretty big name actors and did very well being nominated for five Academy Awards. However, what’s best about this movie is its real look behind the mortgage crisis of 2008. It is an eye opening movie that really makes you think about what goes on behind closed doors at some of these large corporations.
Here’s what I learned from watching it.
The Run Up to 2008 Was Absurd
What was being done behind the scenes at the highest levels was just ridiculous. If more people were aware, the correction certainly wouldn’t have been a surprise to anyone. This is essential to watch for all those who weren’t active in real estate before 2008, so that they know what really happened and know what to be alert to.
Always Be Aware
Always be alert to what is going on in the market. This not only applies to current real estate sales and price trends, but trends in mortgage lending and the secondary market. Throw out the front page news, dig into the data and learn the word on the street yourself.
Buck the Herd
The big gains are made, and preserved, when you go against the herd. You can make money from the herd’s blind stampede mentality. But be careful to buy right, and complete due diligence in order to achieve sustainable gains, and to select and structure sustainable investments. When your uber driver starts talking about venturing into flipping houses then that’s a good sign the masses are heading into that sector.
Always Be Learning
I’ve always been committed to constant self-improvement. This movie helped me get an even better perspective on this and the need to continually educate myself and expand my knowledge on the big economic picture. I am further educating myself specifically on the Federal Reserve, which came in existence to regulate banks. I believe watching what they do is a good indicator of where we are as an economy. They control the interests rates in America, which at this moment are low, allowing for more people to spend and borrow money.
Think for Yourself
This goes beyond due diligence and rushing to join the fad of the moment. Truly think for yourself — outside of the box that some big manipulators want you to be in. Don’t just take being stuck in their sandbox. Think about the whole playground as being open to you, and think long term, not just about what’s for lunch today.
Besides the fact that Steve Carroll can actually play a serious role, there is a lot of powerful insight to glean from watching The Big Short. It really is a must for anyone thinking about any type of investment, especially real estate or mortgages. Check it out and comment on your favorite parts or biggest lessons.
Have you seen this film? If so, what did you think?
Let me know what life-changing movies you’ve watched lately!