“The Big Short”, A Highly Didactic Movie Explains Why Americans Can Never Trust Our USG and Wall Street Banks!
The Subprime Mortgage Scandal was Never Really Fixed and Will Occur Again. “The Big Short” produced by Brad Pitt [who has a small part in the film] and Arnon Milchan [a full-fledged Israeli operative who has produced over 130 films] have brought to the forefront a very interesting, quirky small film which tries hard to explain the rise of the 2007 financial crash on Wall Street which completely eliminated two major Jewish banking firms—Solomon Brothers and Bear Stearns.
The film used every conceivable trick in screenwriting [written by Director Adam McKay] in an attempt to describe such esoteric financial instruments as Collateralized Debt Obligations [CDOs] and Derivative Swaps to short the CDOs. Some of the explanatory devices were quite creative; employing a beauty in a bubble bath, Selena Gomez and Anthony Bourdain.
Needless to say, financial bubbles like the subprime mortgage crisis are a combination of extreme greed and criminal activities of the major bankers [JP Morgan Chase, Morgan Stanley, Wachovia] and the rating agencies like Moody and Standard & Poor. Everyone up and down the financial trough made money somehow, someway. In a very funny scene where Steve Carell plays a brilliant, Orthodox Jewish money manager based on the real life of Steve Eisman whose FrontPoint Partners LLC, a unit of Morgan Stanley, uncovers the fact that a Miami-based stripper had bought five houses with no money down and no credit rating. Carell realizes that the whole subprime mortgage backed securities pyramid was a complete fraud based on everyone’s greed, arrogance and stupidity.
Alongside of Carell, is the equally talented Christian Bale, who delivers a compelling performance as Dr Michael Burry, a one-eyed, ex-neurologist, founder of Scion Capital LLC hedge fund, who after countless hours of financial detective work uncovers the basic truth of the highly valued AAA credited Mortgage Bonds: they are all junk and worthless. After some dramatic twists and turns, he shorts all of the subprime mortgages in several banks [Deutsch, Goldman Sachs, etc.] to make an absolute fortune approaching billions of dollars in risk capital.
Now, I can’t recommend this film unless the viewer is interested in understanding the complete stupidity and avarice of our SEC, Fannie Mae, Treasury, President’s Council on Economics and other financial/ regulatory institutions. The so-called ‘bail out’ principals really were the source of the subprime mortgage crisis: Hank Paulson, Goldman Sach’s Investment Banker and Ben Bernanke, the Fed Chairman; as well as his incredibly arrogant, insipid mentor, Alan Greenspan.
The film reminds us that it was Bill Clinton’s need to curry favor with his minority voters that released trillions of dollars of liquidity into the housing markets so that everyone without a credit or financial history could obtain a mortgage loan for a house they could not pay for.
Next, George W. Bush Jr follows in the miscreant footsteps of his corrupt, moronic brothers, Neil and Marvin, as he continued to encourage the false notion that there was no housing bubble and brought in so-called ‘experts’ who knew absolutely nothing about financial instruments [Paulson, Bernanke].
The “Big Short” indicts us all for having lived in a world where truth is not valued; and the easy buck becomes the paramount tenet of our faith and lifestyle. This movie is worth seeing if you are at all interested in how Wall Street in concert with the rating agencies and our Federal Government can continue to screw our lives with impunity.
Go long on the “Big Short” !