"The Big Short" and "Margin Call" are two powerful movies that delve into the causes

and
consequences of the 2008 financial crisis. While both films have different approaches and
storytelling styles, they share a common theme of exposing the systemic failures and moral
shortcomings of the financial industry. In this reaction paper, I will highlight four specific scenes
from these movies that stood out to me and contributed to my understanding of the events that
led to the crisis.

"The Big Short" is based on the book by Michael Lewis and portrays the crisis from the
perspective of a group of investors who foresaw the impending collapse of the housing market
and bet against the banks and mortgage lenders. The film exposes the greed, corruption, and
recklessness of Wall Street, highlighting the systemic failures that contributed to the crisis. The
movie underscores the importance of transparency and regulation in the financial industry, as
well as the need for structural reforms to prevent similar crises from occurring in the future.

The film portrays the crisis as a product of unchecked capitalism, highlighting the dangers of
prioritizing profit over people. The film also underscores the global interconnectedness of
financial markets and the risks posed by economic globalization. The movie argues that the
crisis was not just the result of the actions of a few bad actors, but rather a systemic failure of
the financial system, which required structural reforms to prevent similar crises in the future.

"Margin Call," on the other hand, is a fictionalized account of a Lehman Brothers-like investment
bank discovering the impending collapse of the market and deciding to sell off its toxic assets
before the rest of the market catches on. The film explores the ethical dilemmas faced by
individuals working in the financial industry and the potential consequences of prioritizing
short-term gains over long-term stability. The movie highlights the importance of regulation and
the need for responsible governance in the financial industry.

The film underscores the importance of ethical decision-making and the potential consequences
of prioritizing short-term gains over long-term stability. The movie argues that the crisis was not
just the result of the actions of a few bad actors, but rather a systemic failure of the financial
system, which required structural reforms to prevent similar crises in the future.

Both films touch upon the economic ideologies and globalization that underpin the financial
system. "The Big Short" critiques neoliberalism, which prioritizes the interests of corporations
and the wealthy over the needs of ordinary citizens. The movie argues that this ideology
contributed to the deregulation of the financial industry and the rise of predatory lending
practices that fueled the crisis. The film also highlights the global interconnectedness of financial
markets and the disastrous consequences of economic globalization gone awry.

In "The Big Short," one of the most poignant scenes is when Mark Baum (played by Steve
Carell) and his team visit a Florida housing development that is filled with foreclosed and
abandoned homes. As Baum walks through the empty streets, he is confronted by the human
cost of the financial industry's greed and recklessness. This scene drives home the point that
the financial crisis was not just an abstract concept or a game of numbers, but rather a real-life

Estela,Paul Henry K.
tragedy that affected millions of people. It also underscores the predatory lending practices that
fueled the crisis and highlight the importance of responsible lending and consumer protection.

Another impactful scene in "The Big Short" is when Baum and his team meet with a rating
agency representative who admits that the agency is complicit in the fraud and deception that
underpins the housing market. The representative explains that the agency is supposed to
provide independent assessments of the risk associated with financial products, but is instead
beholden to the banks that pay for its services. This scene highlights the lack of accountability
and transparency in the financial industry and underscores the need for regulatory reform.

In "Margin Call," one of the most memorable scenes is when Eric Dale (played by Stanley Tucci)
is abruptly laid off from his job as a risk management executive at an investment bank. As he
packs up his belongings, he warns his colleagues about the potential consequences of their
actions, stating that the firm is "selling something that they know has no value." This scene
underscores the ethical dilemmas faced by individuals working in the financial industry and
highlights the importance of speaking up against wrongdoing.

Another powerful scene in "Margin Call" is when John Tuld (played by Jeremy Irons) explains to
his team the reason behind the impending collapse of the market. Tuld argues that the financial
industry is built on faith and trust and that the collapse of the market is inevitable because that
faith and trust have been eroded. This scene highlights the fragility of the financial system and
the potential consequences of prioritizing short-term gains over long-term stability. It also
underscores the need for ethical decision-making and responsible governance in the financial
industry.

Both films provide a nuanced and comprehensive look at the events leading up to the financial
crisis and expose the systemic failures that contributed to its collapse. "The Big Short" highlights
the dangers of unchecked capitalism and the need for greater transparency and regulation in
the financial industry, while "Margin Call" emphasizes the importance of ethical decision-making
and responsible governance in preventing similar crises in the future.

Overall, these two movies are a must-watch for anyone interested in understanding the events
that led to the 2008 financial crisis and the potential consequences of unregulated and
unchecked capitalism. They provide a cautionary tale of the dangers of prioritizing profit over
people and highlight the need for greater accountability and transparency in the financial
industry.

Estela,Paul Henry K.