NAME : SRI WASTIKA WULANDARI

NIM : B1031201081
CLASS : ACCOUNTING B (MORNING)

The Big Short (2015)

This film tells about the financial / financial crisis that occurred in the United States. Starring
Brad Ptt, Christian Bale, Ryan Gosling, Steve Carell, and Jonah Hill. This film is a comedy
drama based on a true story. This film teaches us about the challenges we will face in making
ends meet. This film tells the story of four men with crazy but brilliant ideas when there is a
world economic crisis.

It is said that Wall Street is using the Subprime Mortgage Bonds system, which is a system that
causes many losses and mortgage bonds. They began analyzing the market with the aim of
buying CDS from a well-known investment bank on Wall Street. Hedge fund manager at Scion
Asset Management, dr. Michael Burry discovered the fact that the home loan business in the
United States is unstable. He found the fact that the credit payment records were late or not even
paid. Based on his data and research, he predicts that the stock market will crash in 2008 if the
situation continues.

Michael Burry thought at that time the credit system would only be a ticking time bomb, which
would immediately explode. Wall Street and the United States government are not aware of this
and consider that the stock market is in good health. From the staff's research records, the home
loan is very easy to give to the applicant by the bank. Even though all of that will be at risk of
default. Because the applicant's data is tricked, credit can still go down. As a result, many vacant
houses were abandoned by their occupants because they were unable to pay.

This gave Michael Burry an opportunity to make a breakthrough investment, by visiting a giant
investment institution that issued a lot of property credit funds, and persuading his directors to
sell a kind of ownership bond, namely Credit Default Swap (CDS), which might compete with
housing loans. The directors were surprised that their finances had been very good. Credit is
running smoothly.

The CDS bonds that Michael bought, chose the bad ones. Bonds are similar to insurance, which
routinely pay preemi monthly to stay safe. When the sector worsens, they pay more insurance
premiums. Conversely, the worse the economy, the higher the value of the CDS bonds. In 2008,
Michael's prediction actually happened, these markets collapsed and made the American
financial crisis collapse, the Lehman Brothers financial institution that has been around for more
than 100 years was forced to go bankrupt. Things were really messy, but Michael and his friends
as well as the few who bought CDS, benefited tremendously from their short positions.

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