The Big Short movie

Discussion in 'Community Chat' started by jack, Sep 22, 2015.

  1. jack

    jack Administrator Staff Member

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    https://www.youtube.com/watch?v=LWr8hbUkG9s

    I never knew they were making a movie out of MH's book.. And what a cast at that!

    Very much so looking forward to this.
     
  2. Computater707

    Computater707 Well-Known Member

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    Scheduled USA release Dec 23 2015. I have enjoyed MH's books since Liars Poker as he has documented the lurching from one financial crisis to the next.

    I wonder if its release will seem to predict the next financial bubble burst. like The China Syndrome movie came out just before the Three Mile Island nuclear accident.
     
  3. rod178

    rod178 Well-Known Member

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    The Big Short is a great read. Probably best that it is read before watching the movie.

    The book reinforced my opinion that our 'Leaders' are just as clueless as the hoi polloi

    Suppose we are all destined to stumble from one disaster to the next, with a select few benefiting from the 'rigged' rackets.
    .
     
  4. sqa

    sqa Village Scribe

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    Credit where it's due, that last part of the trailer where the Stripper owns 5 houses & a condo is pretty accurate to parts of the country at the top of the bubble. At the same time, the housing bubble was really confined to 5 States, but it caused dislocations in price across the world. Fascinating that.


    As for the Bankers and those at the "top", the problem with the alt-news people is they overthink the skills of "The Powers That Be". (TPTB) They're really competent at the "means to Power" and watching their own six, but they're no more competent at extensive planning or complex tasks than than your local plumbing company owner. In fact, the owners of your local trade companies are probably better than those that run the big companies & banks. They just have extensive experience in how to use corruption for their own greed. (While they, generally, are pretty "smart" in the book sense, that rarely translates to general skill. But it does produce a lot of money.)

    So the stupidity of a lot of banks should be a given. The government was going to bail them out of they got too far afield. And when the Bush Administration didn't, it broke the entire Shadow Banking & Money Markets. So much for those Risk Analysts you pay $200k USD a year for.
     
  5. rod178

    rod178 Well-Known Member

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    The issue was Credit Default Swaps. The housing bubble was the consequence, rather than the cause.
     
  6. sqa

    sqa Village Scribe

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    Well, the real cause was too much debt at too low of rates with assumptions about appreciation that were always nonsensical. It was a good, old Debt-fueled Asset Bubble. And the housing version is the worst of all. The large pile of debt gave room for the insanity that broke out.
     
  7. rod178

    rod178 Well-Known Member

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    All consequences.
    Without Credit Default Swaps there would have not been the vast contagion from the giant Ponzi Scheme that they created.
     
  8. sqa

    sqa Village Scribe

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    It's already too late. :)
     
  9. rod178

    rod178 Well-Known Member

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    Suspect that he (Piper obviously) has a permanent 'issue'.
     
  10. Computater707

    Computater707 Well-Known Member

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    Well I enjoyed the movie. Ever wonder what happened to all that bad paper of Mortgage Backed Securities, etc?

    I often read the geopolitical free reality checks for their take on current events. This article reminded me of the movie. And gave me an answer as to what happened to all that bad paper (and probably lots more)

    https://geopoliticalfutures.com/signs-of-trouble-for-deutsche-bank/

    Here are some quotes

    " The International Monetary Fund (IMF) issued a damning 63-page report on the German banking and insurance sector yesterday. It is a long and thorough report, with the key point buried on page 42: “Deutsche Bank appears to be the most important net contributor to systemic risks in the global banking system.

    In our report, we also noted that the most analogous problem for Germany’s current predicament is Japan in the late 1980s and early 1990s. The first warning of the collapse of the Japanese miracle was the Bank of International Settlements’ warning that Japanese banks would be suspended from international transactions because of low reserves. We cannot help but view yesterday’s events, and particularly the publication of the IMF study, as a similar red flag.

    Then, the U.S. Federal Reserve said that the U.S. subsidiary of Deutsche Bank was one of two banks (the other was Santander) that failed an annual stress test. Deutsche Bank failed the same test last year, and while the Fed noted that the U.S. subsidiary had strengthened its capital position since its previous failure, it said there was still much more work to be done. The markets punished Deutsche Bank, already reeling from Brexit, forcing shares down at one point to their lowest level in 30 years.

    In just the last year, Deutsche Bank has laid off tens of thousands of workers and has seen rating downgrades from both Fitch and Moody’s on its long-term debt and its deposit ratings. Deutsche Bank is also sitting on $41.9 trillion (not a typo) worth of derivatives, an inheritance no doubt from its pre-2008 activities, and perhaps even its post-2008 activities. The crisis is no longer invisible. The IMF, Germany and the markets all see it. "

    This could get interesting could this be the next Brexit domino to fall?
     

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