How the hell did they figure it out?

How the hell did they figure it out?

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youtube.com/watch?v=UFlHwkiAmyU
financialregnews.com/house-panel-sets-groundwork-dodd-frank-rollback/
youtube.com/watch?v=jOO4kPSaD4Y
youtube.com/watch?v=Va-QFGNDW6s
twitter.com/NSFWRedditVideo

Watch the movie and see.

An autismo saw it happen

Literally autism

this movie wanted to be a scorsese movie so fucking bad.

Alot of people were being approved of aaa loans

Why is Sup Forums so fascinated with housing market today

YOU GOT A MATCHING LITTLE BUTLER BOY YOU BUTTFUCK

literally autistic medical doctor played by Christian Bale added up all the legit value of the houses on market and discovered they had been leveraged into bs financial instruments, and that the market was actaully a huge bubble. He makes hundreds of millions, billions of dollars by shorting the market since he knows it's a bubble.

You're too close.

>figure it out

FUCKING rating agencies caused this.

>looks like AAA to me lol

An autistic doctor who is obsessed with numbers is how.

Weren't they getting paid to be AAA?

i read about the american real estate bubble half a year before the crash in some news magazine.

It wasnt really a secret that it was gonna pop eventually.

>it's just our opinion :^)

No one was looking at the numbers that mattered. It was just a line of people eating from the trough and no one wanted to question a good thing.

And people haven't learned their lesson either. Still thinking they can easily just take out a home equity loan or flip houses on the regular.

Yeah. The banks forced the agencies to rate them AAA

>It wasnt really a secret that it was gonna pop eventually.
No one making money from it wanted to rock the boat. Just try to suck as much out as you can while you can.
And plenty of people made out like fucking bandits. Everything that went up did not come back down.

Is it gonna burst again?

someone explain CDOs to me please

I'm gonna burst all over your mum's face

youtube.com/watch?v=UFlHwkiAmyU

Idk why but i find this movie so comfy and interesting

They're doggy doo doo :^)

wew

IS MARGIN CALL BETTER THAN THIS?

YOU DECIDE?

DAYUM

>he must from Bank of America
I don't get the joke

bank of america is shit

if Trump repeals Dodd Frank it will

financialregnews.com/house-panel-sets-groundwork-dodd-frank-rollback/

i guess they expected the state to step in or something.

You buy someone elses debt from the the lender. You pay less than the total value of the loan and the lender gets a chunk of cash now. When the debtor pays back on the loan you get the money.
If you give loans to people with sound credit then you're going to get more money back then you paid over the course ob the debt.
A CDO is like that but youre buying a tiny piece of the debt of a lot of people. Since you are dealing with a bunch of people you can slip some bigger credit risks in among the more sound. The problem is when you start putting more and bigger risks in there and fewer solid investments, but sell it as AAA instead of shit tier because the people who are supposed to evaluate the risks didn't and just rubber stamped them as tripple A.

Bank of America caused the great depression

youtube.com/watch?v=jOO4kPSaD4Y

>read this book
>he talks about a gangster named fat tony who made bank off the crisis
>all because he thought something was fishy

I really want to see a movie based off this guy

What happened? Why the sudden influx of threads about this film?

>movie literally spends half the time explaining a concept that's not even complicated
>I'M SO CONFUSED ECONOMICS LOL
the american education system is set up so you can meme and cheat your way through hs to get into top universities so no one remembers anything they learn, even highschool level economics

how the fuck is that not illegal

t. tom sowell

Margin call has some amazing scenes of top tier actors hamming it up. Big Short is funnier.
Both are breddy gud tho.
Boiler room from the early 00s is worth watching too.

BECAUSE ITS A GREAT WAY TO MARGINALIZE RISK IF THE ASSETS ARE CORRECTLY RATED

BUT GEORGE W BUSH FUCKED YOU ALL LOL

girth>length

Evidence of what really happened prob ready to drop.

same OP

Welcome to the Financial market. That's just the tip of he iceberg. Have heard about credit default swap or natural disasters swap?

Do not talk to the press Head directly to your transportation

PEOPLE WHO LIKED THIS MOVIE SHOULD WATCH THIS ADAM CURTIS DOC

ITS LEGIT

youtube.com/watch?v=Va-QFGNDW6s

>2017
>believing anything Hollywood does, says, or produces is in earnest

This literally explained it better than anything in the movie

so what's a synthetic CDO

Its totes illegal. But how do you prosecute pillars of the financial industries that will bring the economy crashing down with them?
Thats the whole point of the movie.
Brad pitt has that great scene where he chews out the dudebros when they start seeing their shorts come in. He says that shit is hitting the fan and the reprocussions would be people being wiped out financially overnight.

I wanna make big money guys

Yes, if only the 'dudebros' could be stopped.

Fuck off

INDEXED MUTUAL FUNDS

Money is the weakest form of power.

Short the tech market :^)

bet it all on red

Will the tech market burst?

No, advertisement is the next to burst.

Im talking about the two fresh out of college dude bro characters that were friends with brad pits character.
Don't be so sensitive.

what? everyone knows the financial markets are run by goy Chads

LITECOIN

well, it is actually OK so long as the ratings are still good.

Provided the risks are properly categorized, then there's no problem, as you can properly assess the risk of given debts, and thus actually provide better protection with that large bundle than with a small one.

This was the initial idea back in the 90's, and it was a good one: it truly was risk-free, or close to it, at the start.

The issue was, as the movie explained, that the banks bullied first the government and then the ratings agencies to relax their standards, and allow crappy debt to be labeled as good debt, and still be bundled into AAA tranches.

Worse, people often lost track of what they had initially bullied into being bad. So they then shored up truly abysmal D ratings with supposedly good AAA ratings--that they didn't realize were actually the shitty C grades they'd forced the ratings agencies to rate as AAAs.

This led to stacks of AAA tranches that were supposedly well marginalized against risk that were actually filled with totally garbage debt that almost certainly would never get paid back. This was OK while rates were low and the debts were not called in, but in 2008, a large amount of these bad loans experienced a jump in price that the debtors could not pay, so they defaulted on the loans.

Normally this would be fine, as the whole idea of these setups was to marginalize these defaults, so that AAA loans where people paid them off ahead of time covered for the ones that people defaulted on. But because those AAAs weren't truly AAA and were also defaulting, the whole system collapsed.

>(((rhetoric)))

How so?

the rubber stamping is "illegal"
the loan market is just a facet of capitalism
it's easy to get middle class americans angry about restrictions on this sort of thing by calling it socialism and telling them it will kill business

It's over saturated and the people doing market research are idiots.

does ANYONE still watch ads?

I can't believe there still is an advertising industry.

>Evidence of what really happened prob ready to drop.
this. sure is a lot of 'explaining to us' going on

>what are digital agencies?

try and keep up

For the people in the prime 18-24 market? Fewer and fewer. Super Bowl is still a thing, but that doesn't make people buy. Just remind them of certain brands.

>prime 18-24 market?

That's one of the problems, they advertise to the one group with little to no money and debt.

The last part of the film confused me cause the people who short the bonds are guaranteed money if it failed right?

Then why were those people once the crash started look like they were gonna lose money the banks are the ones who would lose it?

are you people fucking retarded?


Anyone w/ half a fucking clue, gave up tv adverting 5+ years ago.

the whole film was nonsense. don't worry about it.

>what are 50% of the posts on Sup Forums?

>blaming this on GW
I hate that man for letting Israel and Saudi money rule his administration but the housing bubble was NOT his fault.

>do not talk to the press
Lol oh yeah like anyone is gonna listen

if the banks run out of money the federal reserve has to print more or let the banks fail and that means either inflating your economy or ruining the finances of the people with assets held by those banks

so the solution they came up with was TAX PAYER FUNDED BAIL OUT watch the movie

They did make a shit load though. The banks were trying to screw them one more time. They sold and still made money off their stupidity

Of all the I banks bank of America is the lowest.

The banks were resistant to pay, but they were also realizing that the economy just collapsed.

>banks are the ones who would lose it?
Banks don't have their own money. Thats why you get interest for leaving it in the bank. They use your money to lend money to other people.
If everyone who had an account at the bank decided to clean it out on the same day the bank wouldn't be able to cover it all. Usually this isn't a problem because it takes a serious happening to cause a run on the banks.
But if a bank loses all of its money, then they have lost all your money.
Banks are federally insured which means in the event the bank goes belly up the government will honor the debts to the individuals.

Wait you can make money by literally leaving your money inside a bank?

Don't try it user, the interest rate is so low that inflation overtakes any supposed earnings.

I don't understand any of that

kek


sweet shilling


movie bullshit
really, $ bullshit (mfw)

Not a shitload of money, but thats literally what interest is.
You're not going to get rich on interest unless you just have a disgusting ammount of money already put in there.

>I wanna short the housing market

Right, what isn't exactly clear from the movie is just how boring and painstaking the math he had to do was. You could get the general picture by talking to real estate agents like Steve carrell and his associates did, but not the exact picture.

>yes goy, it was an exhausting process the film was

>banks got too big to fail
>banks only got bigger and more powerful since

wew

How is the housing market now

Rock solid, like my cock

It's great. China is really getting busy.

You need a shitload of money to cover your losses until the shorts come in.

China is taking over Canada

Interest in the modern banking sense was meant to offset inflation.
If you left money in the bank for 20 years, it was supposed to be worth about the same 20 years later. It would accrue proportionate value.
This is one reason rich people put most of money in investments, as a means of future-proofing and perhaps even growing their net earnings.
Unfortunately, this is NOT the case. That pension fund you're paying into won't even match up to whatever welfare will be in 30-40 years.

and Australia

and all of Africa

Purchases are up. Chinese people are coming in and buying up houses and other pieces of real estate piece by piece.