Friday, March 18, 2016

Week 8 Review

On Wednesday I finally saw The Big Short. I have been wanting to see this movie since it came out in theaters on November 6. The Big Short is a movie about a man in the world of finance who predicts the credit and housing collapse of the 2007. It all starts in 2005, with Michael Burry played by Christian Bale, a hedge fund manager who discovers that the U.S. housing market is extremely unstable. He predicts that the market will collapse sometime in 2007, and realizes that he can profit from this situation by creating a credit default swapmarket, which allowed him to bet against the housing market. He goes to different banks with his idea, and due to the belief that the housing market is extremely secure the banks accept his proposal to create the credit default swapmarket which is the “short” and bet against the housing market. Even Though the movie has many terms that are a bit difficult to understand with a lack of knowledge about the world of finance and economics, the movie is extremely detailed and does a good job explaining these terms, which helps you understand what they are saying. I thought this movie was really entertaining and I enjoyed watching it. I felt like it was an extension to my economy class.

No comments:

Post a Comment