"The Big Short"

Table of Contents

Introduction

Title

“The Big Short” is a 2015 American film adapted from Michael Lewis’s 2010 book “The Big Short: Inside the Doomsday Machine” tells how the 2008 financial crisis was triggered by the US real estate bubble.

Feedbacks

The film “The Big Short” received unanimous praise from all walks of life and won the Oscar for Best Adapted Screenplay.

Reasons to recommend

The movie is compact, the plot is exciting and gripping. It is the best movie to understand the 2008 financial crisis.
Through the plot of the drama, which is interspersed with explanations of specialized financial terms from time to time, the audience can learn a lot of financial knowledge and can easily and quickly integrate into the plot.
Many people associated with the 2008 financial crisis even appear in the film, playing themselves.
As soon as Brad Pitt saw the original novel, he was inspired to adapt it into a movie and it would definitely be a hit. So Brad Pitt immediately asked Michael. Lewis purchased the script and quickly found funding and actors, which is why the film was able to start shooting quickly and find many outstanding actors to perform in the film.
Brad Pitt not only used his own influence, connections, and funds, but also played a key role in the film.

Plot

Simple description

The film consists of three separate but simultaneous stories:

Scion Capital: Hedge fund manager Michael Burry discovered that the U.S. real estate market, which was built on high-risk subprime loans, was extremely unstable. Anticipating that rates on adjustable-rate mortgages would rise in the second quarter of 2007 and the market would collapse, he established a credit default swap (CDS) market that allowed him to profit by shorting market-based mortgage-backed securities.
FrontPoint Partners: Jared Vennett is an executive at Deutsche Bank. He used his own quantitative analysis to verify that Michael Burry was likely right, so he decided to enter the market and buy the CDS himself. However, due to the high monthly premiums, he hopes to reduce the size of his position by selling CDS.
Brownfield Fund: Charlie Geller and Jamie Shipley stumbled upon Jared Vennett’s marketing presentation on a coffee table in the lobby of JPMorgan Chase. Since their capital was below the capital threshold required for trading, they sought help from others. When bond values and CDOs continued to rise despite defaults, Charlie Geller suspected the bank of fraud.

Ending

Jared Vennett received a $47 million bonus for his CDS profits. Mark Baum became more tolerant in the wake of the financial crisis, and his staff continued to run their funds. Charlie Geller and Jamie Shipley parted ways after their failed lawsuit against the rating agencies, with Jamie still managing the fund and Charlie moving to Charlotte to start a family. Ben Rickert has returned to a quiet retirement. Michael Burry closed his fund after a public backlash and multiple IRS audits.

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