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.