Last night I went to the movies and watched the Big Short. First things first, yes, it’s worth the price of admission. If you read this website you will enjoy it, and that’s not to say the general populace will not enjoy it because they will. The Big Short does a solid job of explaining those Wall Street outcasts who made it big due to the housing crisis of 2008, but most importantly it points out the fraudulent nature of the system.
The best thing this movie executed was explaining complex concepts like mortgage backed securities, CDOs, and ISDA to the audience. It took a very foundational and simple approach to explaining these ideas which is important…because if the fickle audience does not understand what’s going on they will stop listening.
Also important to pull out is the moral dilemma many of the “shorters” find themselves during the film. Is it right to make a bet that the market will expose fraudulent behavior? Is it right to profit off an event that will destroy thousands of jobs…and lives for that matter? I’ll let you see the movie or read the book by Michael Lewis to find out, nonetheless, it’s an interesting dynamic.
Lastly, the criminal behavior by the Wall Street banks and the complicit regulators should make everyone piping hot angry at the system, especially since no substantive reform has been made since the events portrayed within the film. No one went to jail. No new regulations have been put in place. I hope people understand what Wall Street did and respond in kind, by pulling their money out from the custody of too big to fail.
Go see the movie, you won’t regret it. It’s very entertaining and provides a glimpse into the times that have past not too long ago. Will we learn from what happened? We shall see, however, that doesn’t mean we can’t profit off similar crisis in the future.