![]() ![]() But when I did understand it, I was kind of disgusted. I had read a bunch of articles on “The Big Short, Explained” just to outline what the 2008 crisis was. Now, believe me when I say this I didn’t really understand any of this originally. ![]() They realized all these people were going to default around the same time, and it would all collapse in on itself. The characters (a band of misfits, they’re shrewdly called) we follow are the little group of people who saw this flaw and inevitably break in the system. What the banks had begun to do was put random loans of different safety levels together. Triple A’s were the safest, meaning it was certain the buyers would be able to pay back the loans. The loans consisted of B’s, Double B’s, Triple B’s, A’s, Double A’s and Triple A’s. ![]() The banks knew this, but to keep investors investing, they needed to convince them that these loans were safe. In a nutshell, banks had begun lending out loans (mortgages) to people who couldn’t actually afford them. ![]() I’ll briefly explain the general plot of the movie as simply as possible, because to be completely honest, I lost it about half an hour in. Based on a nonfiction book, The Big Short revolves around the events leading up to the American housing crisis in 2008, and follows a number of characters as they bet against a portion of the American economy. The other day, I watched the 5-time Oscar nominated movie The Big Short. ![]()
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