Jericho M.

Lipana
BSLM 2-A

The Big Short Reaction Paper

To be honest I have little interest in movies relating to banks and other business
types of movies, but after watching The Big short film it made me simply care on
something that is not on my interest. As I watched the movie I found out events
that are written in our history, specifically the financial market crash and the
factors that lead to that catastrophic event. The director really did a good job in
making the movie less boring and somehow making the viewers not that
bewildered with marketing terms or business terms and numbers which would
confuse the audience in following every critical scenes in the movie. I can say
that the main actors in the film is very well picked. The performance of Christian
Bale is remarkable in this movie, as is Steve Carell, which is undoubtedly a
phenomenal actor. Steve Carell’s role gave an angry performance, where as his
character in role is merely a hot headed person, but as he learns the greed and
corruption going on in the big banks, his anger intensifies, but for the right
reasons and he played the role really well. Christian Bale’s character in the
movie is someone who knows the statistics, the numbers but has little knowledge
about the people and social interactions. He does weird things, he plays drums
on his knees, walks barefoot in his office but he predicts the financial crash by
just looking at the numbers and he bets on doing the right things to get rich in the
long run. These key prime performance in the movie were the strongest for me,
and the writing is outstanding because the movie covers a very complicated
detail oriented subject that most people would undoubtedly be bored by unless it
was presented in a very entertaining and a captivating but logical way, which it is.
Brad Pitt isn’t that well shown in the movie but is really good in the scenes where
he is in. Though the movie is shown to be somewhat of a comedy slash
documentary type of film, but to be honest it is more like a horror/ documentary
style of film thinking about the events that led to the catastrophic event during the
early 21st century as it was based on a true story where 8 million people became
unemployed and 6 million lost their homes only in the US, which is clearly a
major tragedy written in the history books. Michael Burry predicted that the
housing bubble will explode and lead to the financial crisis yet his clients grow
angry s they stand that the housing is stable and will keep on surging, so Burry
creates the credit default swap which would allow him to short the housing
market. To better understand some parts of the film, I searched some terms
while watching it that would help me understand the movie more. I came across
the word “Subprime mortgages” so basically what happens in maintaining the
repayment schedule. What happens here is that Banks or other financial
institutions convert it into a bond in order for it to be invested and it becomes a
mortgage backed securities. In the film it is clearly shown that it is one of the
major factors that led to the Subprime mortgage crisis. Banks and Hedge funds
made huge amounts of money by selling mortgage backed securities, thus soon
creating a huge demand for the underlying mortgage. Financial institutions lent
out so many mortgages to a huge number of people that couldn’t even afford
them thus leading to so many foreclosures that eventually led to their demise. the
housing bubble exploded because the reason is that it is not healthy for the rapid
increase in the rates in the house market. The fortune of the people betting on it
will lead to the economy loss of the US . In the end it is frustrating in the side of
the investors and financial institution in housing market, they granted a lot of
loans and they are accountable for a lot because at the end they are at a huge
loss. The movie ended forcing them to sell the housing at a low amount because
of the loss they suffered. In order to alleviate the effects of the market crash, the
US government offered emergency loans to banks .For me the reason why the
film is scary is because it is based on a true story.