The Big Short!

[ShadowBoxer]

As the Christmas holiday begins to wind down I would have to say that going to see The Big Short with my family was the high point of the break. To anyone on this forum that might want to know how the housing crisis of 2008 happened: you have to see this movie! To everyone else: go see it anyway. The story is not only true but very relevant (because the banks are still doing the stuff that they were doing in this film), the cast is amazing (Steve Carell and Ryan Gosling were especially entertaining), and you will not find a more palatable way to learn about the ins and outs of the mortgage/housing market.

There is a lot of cussing in this movie and there is one scene were Carell’s character interviews a stripper in a club as part of his research into the Miami housing market (I’m not kidding. It renders something that is normally extremely risque rather comical), so if that kind of stuff bothers you then maybe you shouldn’t see it. Otherwise I highly recommend The Big Short!

 

[7_Sorrows]

thanks for the review. I am wanting to see this movie as I lived in one of the worse hit markets during the crisis.

 

[didymus]

As the Christmas holiday begins to wind down I would have to say that going to see The Big Short with my family was the high point of the break. To anyone on this forum that might want to know how the housing crisis of 2008 happened: you have to see this movie! To everyone else: go see it anyway. The story is not only true but very relevant (because the banks are still doing the stuff that they were doing in this film), the cast is amazing (Steve Carell and Ryan Gosling were especially entertaining), and you will not find a more palatable way to learn about the ins and outs of the mortgage/housing market.

There is a lot of cussing in this movie and there is one scene were Carell’s character interviews a stripper in a club as part of his research into the Miami housing market (I’m not kidding. It renders something that is normally extremely risque rather comical), so if that kind of stuff bothers you then maybe you shouldn’t see it. Otherwise I highly recommend The Big Short!

I read the book & plan on seeing the movie. I’ve loved Michael Lewis’s books since Liar’s Poker.
I long for the good old days when banking was a boring profession and CEOs weren’t rewarded for every quarter they raised the stock price even if it blew up the economy ten quarters down the road.

 

[7_Sorrows]

I read the book & plan on seeing the movie. I’ve loved Michael Lewis’s books since Liar’s Poker.
I long for the good old days when banking was a boring profession and CEOs weren’t rewarded for every quarter they raised the stock price even if it blew up the economy ten quarters down the road.

I didn’t know there was a book too.

 

[didymus]

I didn’t know there was a book too.

He has written several books:

Flash Boys: A Wall Street Revolt. 2014. ISBN 978-0-393-24466-3.

Boomerang: Travels in the New Third World. 2011. ISBN 0-393-08181-8.
The Big Short: Inside the Doomsday Machine. 2010. ISBN 0-393-07223-1.
Home Game: An Accidental Guide to Fatherhood. 2009. ISBN 0-393-06901-X.
Panic: The Story of Modern Financial Insanity. 2009. ISBN 0-393-06514-6.
Michael Lewis, ed. (2008). The Real Price of Everything: Rediscovering the Six Classics of Economics. New York: Sterling. ISBN 1-4027-4790-X.
The Blind Side: Evolution of a Game. 2006. ISBN 0-393-06123-X.
Coach: Lessons on the Game of Life. 2005. ISBN 0-393-06091-8.
Moneyball: The Art of Winning an Unfair Game. 2003. ISBN 0-393-05765-8.
Next: The Future Just Happened. 2001. ISBN 0-393-02037-1.
The New New Thing: A Silicon Valley Story. 2000. ISBN 0-393-04813-6.
Trail Fever. New York: A. A. Knopf. 1997. ISBN 0-679-44660-5.
The Money Culture. 1991. ISBN 0-393-03037-7.
Pacific Rift. Knoxville, Tennessee: Whittle Direct Books. 1991. ISBN 0-9624745-6-8.
Liar’s Poker: Rising through the Wreckage on Wall Street. 1989. ISBN 0-393-02750-3.

The Blind Side was made into a movie, I haven’t seen it but it sounds like it was more about the Sandra Bullock character than Michael Oher whose life stroy the book was about.

 

[7_Sorrows]

He has written several books:

Boomerang: Travels in the New Third World. 2011. ISBN 0-393-08181-8.
The Big Short: Inside the Doomsday Machine. 2010. ISBN 0-393-07223-1.
Home Game: An Accidental Guide to Fatherhood. 2009. ISBN 0-393-06901-X.
Panic: The Story of Modern Financial Insanity. 2009. ISBN 0-393-06514-6.
Michael Lewis, ed. (2008). The Real Price of Everything: Rediscovering the Six Classics of Economics. New York: Sterling. ISBN 1-4027-4790-X.
The Blind Side: Evolution of a Game. 2006. ISBN 0-393-06123-X.
Coach: Lessons on the Game of Life. 2005. ISBN 0-393-06091-8.
Moneyball: The Art of Winning an Unfair Game. 2003. ISBN 0-393-05765-8.
Next: The Future Just Happened. 2001. ISBN 0-393-02037-1.
The New New Thing: A Silicon Valley Story. 2000. ISBN 0-393-04813-6.
Trail Fever. New York: A. A. Knopf. 1997. ISBN 0-679-44660-5.
The Money Culture. 1991. ISBN 0-393-03037-7.
Pacific Rift. Knoxville, Tennessee: Whittle Direct Books. 1991. ISBN 0-9624745-6-8.
Liar’s Poker: Rising through the Wreckage on Wall Street. 1989. ISBN 0-393-02750-3.

The Blind Side was made into a movie, I haven’t seen it but it sounds like it was more about the Sandra Bullock character than Michael Oher whose life stroy the book was about.

I saw The Blind Side. The movie was kind of corny. A vehicle for Sandra Bullock to shine in. I might go see The Big Short this weekend.

 

[dedo]

We were at it yesterday, but had to leave 45 minutes before the ending because of a fire alarm.

What we saw was good, and worth going back to see even if we have to see the first 2/3 of the movie over again.

 

[7_Sorrows]

We were at it yesterday, but had to leave 45 minutes before the ending because of a fire alarm.

What we saw was good, and worth going back to see even if we have to see the first 2/3 of the movie over again.

did they give you a free pass to return?

 

[dedo]

did they give you a free pass to return?

They had a long, slow moving line for passes.

It was a half price day, so we did not bother.

 

[7_Sorrows]

They had a long, slow moving line for passes.

It was a half price day, so we did not bother.

I don’t blame you.

I did get to see it. it had a good cast. I was trying to follow along with the terminology of the banking and mortgage business as well as the credit rating places. For people not in the business it is hard to grasp all that was being discussed and happening. I couldn’t understand why they were betting against the mortgages or economy. Some of that went over my head. I understood why it happened. I live in one of the states that was hit hard by the real estate collapse. I had built up a lot of equity between 1989 and 2007. I lost it all. I still have my house but it has been rented since 2008. it has been a nightmare. over 6 million people lost their homes. Greed - pure greed!

 

[dedo]

I am sorry that happened to you.

We went back and saw the movie again to the end. It was excellent.

I may even see it again.

I wonder what people’s thoughts are on the “credit default swaps” that the doctor running the hedge fund requested to be created to bet against the mortgage industry.

In one scene, the actors noted that the capital in bets in different forms on the housing bonds
was many times the value of the bonds. This created a huge amplifier on the effects of the bonds collapse. Of course, the mortgages and the bonds should never have been allowed in the first place.

Clearly the doctor and the few hedge / investment fund managers that “saw it coming” made the right call in terms of profits for their shareholders.

But did they make the problem worse, and is there a message in that?

 

[7_Sorrows]

I am sorry that happened to you.

We went back and saw the movie again to the end. It was excellent.

I may even see it again.

I wonder what people’s thoughts are on the “credit default swaps” that the doctor running the hedge fund requested to be created to bet against the mortgage industry.

In one scene, the actors noted that the capital in bets in different forms on the housing bonds
was many times the value of the bonds. This created a huge amplifier on the effects of the bonds collapse. Of course, the mortgages and the bonds should never have been allowed in the first place.

Clearly the doctor and the few hedge / investment fund managers that “saw it coming” made the right call in terms of profits for their shareholders.

But did they make the problem worse, and is there a message in that?

I was concerned about that too. they made off with a lot of money. I wish they would have worked harder to inform the public of the crisis about to happen.

 

[dedo]

I was concerned about that too. they made off with a lot of money. I wish they would have worked harder to inform the public of the crisis about to happen.

Yes. It would have been nice if that had been their goal.

factcheck.org/2008/10/who-caused-the-economic-crisis/

This is an article from factcheck.org analyzing the source of the problem, and possible solutions.

Apparently, the GAO recommended improved regulation of the housing industry in 2005 that was opposed by both parties. That was probably the very last chance to prevent the disaster.

 

[7_Sorrows]

Yes. It would have been nice if that had been their goal.

factcheck.org/2008/10/who-caused-the-economic-crisis/

This is an article from factcheck.org analyzing the source of the problem, and possible solutions.

Apparently, the GAO recommended improved regulation of the housing industry in 2005 that was opposed by both parties. That was probably the very last chance to prevent the disaster.

I do agree real estate agents and brokers played a part. how can one blame the homeowners? they took advantage of a good housing market then sold and bought homes marked too high and ended up upside down in their loans. they were victims of these crooks!

 

[dedo]

I do agree real estate agents and brokers played a part. how can one blame the homeowners? they took advantage of a good housing market then sold and bought homes marked too high and ended up upside down in their loans. they were victims of these crooks!

My main focus is how this could have been prevented, and is there a lesson that applies to other areas of life / society.

I identified with the Michael Burry character because he found that the time he spent learning medicine and finance left him impaired in other areas, especially in dealing with others in some settings. His comment re: “Even when he tried to compliment someone, it just comes out wrong.” – is something I understand.

I am also interested in bubbles in other areas besides finance. A lot of systems work that way.

I got more out of the movie the second viewing than I did the first 2/3 viewing. So I will likely see it again.

 

[7_Sorrows]

Yes. It would have been nice if that had been their goal.

factcheck.org/2008/10/who-caused-the-economic-crisis/

This is an article from factcheck.org analyzing the source of the problem, and possible solutions.

Apparently, the GAO recommended improved regulation of the housing industry in 2005 that was opposed by both parties. That was probably the very last chance to prevent the disaster.

My main focus is how this could have been prevented, and is there a lesson that applies to other areas of life / society.

I identified with the Michael Burry character because he found that the time he spent learning medicine and finance left him impaired in other areas, especially in dealing with others in some settings. His comment re: “Even when he tried to compliment someone, it just comes out wrong.” – is something I understand.

I am also interested in bubbles in other areas besides finance. A lot of systems work that way.

I got more out of the movie the second viewing than I did the first 2/3 viewing. So I will likely see it again.

I hope I can see it again because I would like my son and daughter-in-law to see this movie as they bought their first house 3 years ago.

 

[dedo]

Here is a link to a description of Michael Burry’s history of teaching himself to be a financial genius, and the books he thought were the most important:

valuewalk.com/2015/12/learning-from-michael-burry/

The books are definitely on my reading list, and may be helpful to you and your children.

Seeing “The Big Short” and “13 Hours” again are on our fun list for this week.

 

[7_Sorrows]

Here is a link to a description of Michael Burry’s history of teaching himself to be a financial genius, and the books he thought were the most important:

valuewalk.com/2015/12/learning-from-michael-burry/

The books are definitely on my reading list, and may be helpful to you and your children.

Seeing “The Big Short” and “13 Hours” again are on our fun list for this week.

I just saw 13 Hours yesterday. I really liked it. I would like to see both again. They were both excellent movies. 13 Hours really impressed me.