Scribd Logo
Upload

Welcome to Scribd!

  • 45 views

    John Abner T. Renolla Bsba FM 4A

    Uploaded by

    Reb Ren
    The document provides a summary of the movie "The Big Short". It discusses how the movie illustrates the fraudulent activities and greed that contributed to the 2008 financial crisis. It focuses on several people who were able to predict the crisis and profit from it. The movie effectively explains complex financial terms and instruments like CDOs, MBS, and credit default swaps that amplified losses across the global economy when the U.S. housing bubble burst. It also draws a metaphor comparing a rising housing market to a player winning at blackjack, and the housing market collapse to a player losing, creating cascading losses throughout the economy.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    John Abner T. Renolla Bsba FM 4A

    Uploaded by

    Reb Ren
    45 views2 pages
    The document provides a summary of the movie "The Big Short". It discusses how the movie illustrates the fraudulent activities and greed that contributed to the 2008 financial crisis. It focuses on several people who were able to predict the crisis and profit from it. The movie effectively explains complex financial terms and instruments like CDOs, MBS, and credit default swaps that amplified losses across the global economy when the U.S. housing bubble burst. It also draws a metaphor comparing a rising housing market to a player winning at blackjack, and the housing market collapse to a player losing, creating cascading losses throughout the economy.

    Original Description:

    reflection on capital budgeting

    Original Title

    ladea reflection

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides a summary of the movie "The Big Short". It discusses how the movie illustrates the fraudulent activities and greed that contributed to the 2008 financial crisis. It focuses on several people who were able to predict the crisis and profit from it. The movie effectively explains complex financial terms and instruments like CDOs, MBS, and credit default swaps that amplified losses across the global economy when the U.S. housing bubble burst. It also draws a metaphor comparing a rising housing market to a player winning at blackjack, and the housing market collapse to a player losing, creating cascading losses throughout the economy.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    45 views2 pages

    John Abner T. Renolla Bsba FM 4A

    Uploaded by

    Reb Ren
    The document provides a summary of the movie "The Big Short". It discusses how the movie illustrates the fraudulent activities and greed that contributed to the 2008 financial crisis. It focuses on several people who were able to predict the crisis and profit from it. The movie effectively explains complex financial terms and instruments like CDOs, MBS, and credit default swaps that amplified losses across the global economy when the U.S. housing bubble burst. It also draws a metaphor comparing a rising housing market to a player winning at blackjack, and the housing market collapse to a player losing, creating cascading losses throughout the economy.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    John Abner T.

    Renolla

    BSBA FM 4A

    The Big short is a movie or a story based on Michael Lewis’s best-selling book of the

    same name. The Big Short is sure an old movie, but this is the first time I watched this movie in

    which gives a lot of lesson about the scheme and the greediness of the people working in

    mortgage loans this is a movie that represents the investment scheme in the Wall Street. Wall

    Street is a street located in the lower Manhattan section of New York City that is the home of the

    New York Stock Exchange or NYSE. The Big Short focuses in particular on a few exceptional

    people who were able to foresee, forecast or predict the crisis in advance and make profit from it.

    Mike Burry is the first who recognizes that the U.S. housing market is virtually an asset bubble

    inflated by high-risk loans as stated in the movie. At the same time, Jared Vennett accidentally

    find out Burry’s aim to start or to set up the credit default swap against the Housing markets or

    the mortgage loans as Burry saw what will happen to the said investment and the two investors

    Charlie Geller and Jamie Shipley ask for the investment advice of retired banker Ben Rickert

    after they found a paper in JPMorgan Chase written by jared Vennett. 

    In the movie, it also focuses about the fraudulent activities and greediness of each banker

    involved in the crisis in which they were quick to offer loans to people without making sure they

    could pay them back. In my opinion, I would say that what the bankers did in the movie will

    really pull the economy down not just the economy but also the global economy as well, as they

    does not tell the truth to their investors. The customers do not know that they are getting fish that
    may be rotten. Bourdain saying this is similar to what Wall Street did with risky mortgages as

    securities. They sold these securities to banks around the world, saying they were fine products.

    The Good part of the movie is the explanation of financial terminologies, the effect of the

    financial crisis. In this movie they used stylistic approach to define such terms from the CDO

    (Collateralized Debt Obligations), Tranches, credit default swaps and Mortgage Backed

    Securities (MBS) that contributes to the downfall of the global economy. In addition, the film

    also explain how complex the synthetic CDO is and its origin in a scene which Selena Gomez

    plays black jack. It explains how side bets of Selena’s card Increases greatly when she is

    winning. I think it is a metaphor for a rising housing market. However, when Gomez loses a

    game or a card it represents that the housing market falls, those increasing large side bets creates

    a domino effect that creates larger losses at the economy.

    You might also like