The Big Short Film Analysis

Second part : The Subprimes Winners

Anytime something bad happens, it does not take long before blame starts to be assigned… Nonetheless the beneficiaries that exploited the chaos to their advantage were not the guilty ones, and they could not have stopped this crisis of happening, there was no possible way of stopping this stock bleeding… for the most part “those winners” were not stock exchange experts, they just benefited voluntarily or involuntarily from it, some of them,in a political way, others in an economical way. Contrary to what we could think, only a small part managed to win by influencing and taking huge risks… they were brokers, traders and were known as the crisis opportunists. Also let’s not forget that some of them had advantages

To understand more clearly the context, I took the initiative to watch a popular movie called : “The Big Short”

It is an historical drama film directed by Adam McKay and written by McKay and Charles Randolph. The main actors are Christian Bale, Ryan Gosling, Brad Pitt, Steve Carell. This movie focuses on some of the financial professionals who predicted the crisis and used this advantage in order to profit from the 2007-2008 financial collapse. This movie is a cinematographic adaptation of the book : The Big Short: Inside the Doomsday Machine by Michael Lewis published in 2010.

Even though the story is romanticized, it really happen just like in the movie. We can find characters that really existed such as : Michael J Burry who was one of the best American hedge fund investor and one of the first investors to recognize and profit from this huge mortgage crisis by making nearly 100 millions. There is also Steve Eisman (portrayed by the famous actor Steve Carell) and Jared Vennett (Played by Ryan Gosling) …

I think this movie is relevant because it really reflects what happen during that

They work directly with both the consumer and the bank to help borrowers qualify for a mortgage, whether it be a purchase mortgage or a refinance

Borrower/Homeowner (-- removed HTML --) Bank/Mortgage Lender

Unfortunately, there was not enough information for me to do a complete second part concerning ”the lucky ones” during the crisis, so I am just going to mention some of the few that indirectly beneficiated from the crisis.

Many economists were expecting China to emerge as a major player in the world economy by buying US Treasuries and providing cheap imports to US during the financial crisis, but in reality China was badly hit by the recession. The “Middle Kingdom” suffered a huge drop in exports and had to face some major challenges in order to rebalance its economy to continue growing and stay in competition with other developing countries such as India. However, let’s not forget that the United States rely far more heavily on china than the opposite.

People do not discuss enough of the real countries that were unaffected or at least not too affected by the crisis, it is true that indeed some countries are and were doing better than