How accurate is this movie?

How accurate is this movie?

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more accurate than Bannos attempt

It tells you in the movie which parts were purposely embellished or made up, so extremely accurate and honest.

So basically bankers were greedy and people stupid?

Don't loan people who have no money lots of money
And with those loans don't tell investors that they are AAA rated investments.

Was a massive con job.

Yes
It'll probably happen again too

Even though they "dumbed it down" I still couldn't fully grasp how the whole thing worked. I guess it's the brainlet's life for me.

The banks had shitty loans that were being defaulted on, but when they put them together in a package they appeared to be pretty good bundles of loans

eventuallly the bad loans collapsed, bringing down the bundles, which crashed everything

...

What's the next bubble in USA that will fuck world over? Student loans?

watch margin call, a much better and more realistic look at the people who populate high finance.

>Dude complicated economic concepts lmao

companies over leveraging, right now debt is really cheap and so companies are using debt to purchase equity instead of producing real growth.

That and the investors had very little connection to the consequences of their action
They did not care if their bank or their clients went bankrupt, they had their money. And so both ended up going bankrupt

Why did Carell do Prison Mike for this movie?

Yes. It's why usury should be illegal.

As a story of the autist and weirdos who predicted financial collapse and shorted the markets for profit with various personal circumstances, very with some elements removed and added for entertainment
As an explanation for the recession, its dumbed down but nothing blatantly false it just doesnt tell the whole story nor should it

>basically bankers were greedy and people stupid?
EVERYONE WAS GREEDY AND STUPID!
There was so much money at the trough that no one was in a position to stop it, if they tried they'd get shoved aside by someone else.

I never want to get a loan for anything in my life nor a credit card, it just seems way too fucking risky.

Fairly.

A risk distribution mechanism called a CDO failed to accurately gage risk in a credit market, specifically the subprime mortgage lending market, due in part to a deregulatory mechanism called the Commodity Futures Modernization Act, but also due in greater part to outright criminal fraud in mortgage underwriting.

Another interpretation / explanation - in the past few decades, people on Wall Street literally made up the concept of a mortgage backed security, basically a “stock” you could buy that was “backed” by “mortgages.” Stocks are also made up concepts in this sense, a representation of buying a fraction of ownership of a company.

Anyways, this is called financial innovation. Happens all the time. Think ETFs or credit default swaps blah blah, literally made up financial instruments that get approved and traded and bought. Think bitcoin, although that might have more legit technology behind it.

ANYWAY, people buy a ton of mortgage backed blah blahs, the mortgages themselves were fucked because stupid people were just “buying” houses by borrowing from the bank with no intention or ability of paying for the houses or paying back their house loans (mortgages). Also, banks or other people would “prey” on regular folks by making them think they could buy the house no sweat.

So enough mortgages get fucked or something triggers this downfall. Domino effect. All the mortgages are fucked, all the mortgage backed securities are fucked (which every major bank and institution basically had a huge stake in because all the money in the world basically touches each other and circulates together blah blah global economy), and suddenly you have entire economics “collapsing” when big banks don’t have enough cash on hand to let people withdraw their money, which is their fundamental function = panic

It actually fuckin happened like this! People and researchers are still studying it though

>Real estate prices skyrocketing
>People still want houses
>Banks enable this through more and more loaning
>This is financed by investment firms buying the the mortgages as something that pays regularly with good cash flow to be sold to other people
>People generally pay mortgages
>House prices going up anyways so profit seems secured even in default
>Banks make shittier and shittier loans to keep cash machine going
>These are re packaged in with other shitty loans of varying quality and investors can buy into an insanely complex scheme that hides the risk
>Then to double secure the risk insurance options are sold on these investment schemes which then become investment schemes in of themselves
>Billions to trillions of dollars pour into something that seems rock solid but is actually based on shitty loans
>People default like they always would have and housing prices go down leaving banks and investors with trillions of dollars of investments on paper that are now worth shit
>This shit is also insured but to countless investment banks and now all has to be paid back
>Every investment bank and AIG turns out to have been trading and insuring these trades that are now worth nothing that they are all on the hook for them
And now the whole system is fucked because everyone owes everyone else money backed with assets that are now worthless in markets where trade doesnt make sense anymore because every institution of doing so is now crippled

None of this is in any way accurate, and you are the kind of moron the narrator talked about in the beginning of the film, the one who makes shit up to try and sound smart enough to understand why his society is collapsing around him, but he doesn't actually have a clue.

Could you just squat some abandoned mcmansion until you get property rights?

You would never get property rights and even if you did good luck paying those debts and those future taxes on it
But in the short term if you wanted to be a pain in a lot of people's ass and do that while lying about what you own sure

>banks enable this
NOPE. Most mortgage lenders are non-bank institutions.

>if you wanted to be a pain in a lot of people's ass
thats literally all I want

Ok from enterprises that had no business dealing with derivatives (Non-investment entities) bad on blaming loose borrowing deregulations instituted by HUD, government itself (Fannie & Freddie), and the actual borrows who had no business owning property they could not afford.

One stripper who owned 5 houses, but blamed the mortgage company, not the whore and a faceless landlord who the minority renters were evicted because landlord was "underwater" on the mortgage.

Investment banks enable this not by being literal straight forward mortgage lenders but people who buy them and turn them into instruments

Wrong. Remember Glass–Steagall repeal? Investment banks can buy commercial banks and retail banks.

Well nothing stopping you now or wait till the next economic collapse
The world's your oyster

YOU GOT A MATCHING LITTLE BUTLER-BOY YOU BUTT-FUCK

Who oversaw this brewing since the mid-seventies?

In the mid 90's who was the HUD secretary that loosed borrowing regs?

Who went after red lining which was based on economic factors, not race?

Who empowered Freddie & Mac and insulated them from the fallout?

That is your fucking problem. In the late 90's, both Branches had to strip regulations because the banks were losing cash because they were essential go against every financial metric due to government force faggot.

During this time Fannie & Freddie had the opportunity the leverage themselves infinitely theoretically combined with the luxury of undiversified business models fucked up the whole banking industry due to their advantage.

Fuck you, the government was solely to blame because it created the fire in the first place.

I know it was tempting for the film makers to make the mortgage brokers a bunch of frat house douches, but who can blame them?

They were approached both by people who wanted mortgages, and by the banks who were willing to take the risk of default off their hands. I'd do exactly the same if I was in their position.

this, literally affirmative action in lending because of the government every person should own a home meme.

> People buy houses using mortgages, which are loans with the house as backing
> Banks sell mortgages to people under the assumption that they're always going to get paid back, since the consequences of defaulting are so dire for the debtor (losing your house sucks)
> This makes everyone money, since the debtors get homes, the bank gets the principal + interest, and everything keeps chugging along

> 3 things happen
> Someone at a bank realizes that they're selling mortgages to people who are guaranteed to pay back the loans, and they can make even more by widening the pool of debtors and increasing the rates on repayments, since even if a few risky people default, most people won't
> Someone in DC realizes that poor people vote, and fair housing laws are popular
> Someone on Wall Street realizes that buying and trading assets backed with mortgages is an incredibly safe bet compared to other securities

[Time passes]
> Housing prices skyrocket, since everyone can "afford" homes
> Anyone can get a loan for this incredibly valuable property
> The people who grade houses and the people who grade mortgage-backed securities for sale all have no incentive to tell the truth about what the assets are valued at
> People keep passing the debt along, until finally people realize that there's a roof to the market, and the housing market collapses
> The financial instrument backed by the housing market loses all of its value overnight
> The debts that people bought, thinking they'd be guaranteed repayment, aren't actually worth anything, since everyone has defaulted on payment

If that sounds stupid, that's how I got loans to pay for college. Except there's no asset backing my college degree. If I default, my creditors will never get their money back.

Bullshit they had to adapt to government regs along with Fannie and Freddie artificially fucking up the markets because some Congresscritter and President wanted to brag about people buying houses they could not afford.

Why the dereg. in the late 90's that passed overwhelmingly in a bi-partisan factor? They knew the industry needed to be opened up in order for the Ponzi Scheme to continue. Institutions made money off of structured-investment vehicles and politicians bragged about home sales.

Then those who had no business buying homes could not afford their mortgages and the whole scheme imploded. The scheme is still ongoing though, just way tilted towards GSE leverage which means primarily the tax payer. It's going to be fucked up again.

youtube.com/watch?v=DdF76QhVEFE

How is anything you posted a contradiction to the fact that the role of investment banks in the whole crisis was turning mortgages into securities to be bought and sold helping enable the whole scheme?
Yes government played a role and so did a lot of other factors
Me not exhausting the whole list of actors in housing crisis does not mean investment banks did not help enable it

That or car loans. The car loan industry is a huge bubble right now.

This is like someone who watches those "Hitler reacts to" videos from downfall that speaks/understands German.

If you know finance, then your video is cringe tier as hell. Leveraging, buying "securities", capital structure, etc... is real money and real risk.

>using debt to purchase equity

this or car loans. /o/ had a tripfag which worked in an used car dealer and had the most revolting stories about this shit. Literally, people with sub 500 credit score getting approved by lenders which also rolled negative equity into the car they're going to trade in and just sucking up those payments.

Good up until the last 5 minutes when it fails to mention that all the money given in bailouts has since been returned to the US govt with interest and that the handouts were given as contract incentives to the finance executives who had created the derivative deals in the first place, and they were the only ones with enough familiarity with them to successfully dismantle them.
Instead the tries to imply that they should all be in jail for some reason, even though millions of people were ultimately more or less responsible in causing the crash.

Without loosening borrowing standards, appraisals manipulation (Started in '93 with Cisneros), Fannie an Freddie favoritism (GSE) that destabilized the markets, and getting rid of red lining there would be no false derivative market concerning mortgages.

In 1999 Freddie Mac and Fannie Mae issued mortgage back securities on a provisional basis without hindrance on size and timing. Then they started buying bad loans which shielded the market.

Investment banks do what they do and saw an artificial trend where they were told to "trust us". Some did some did not, other entities saw the potential cash flow and jumped in.

The Fed created this ticking time bomb and tried to save themselves in 2007 when the bought $38 bill in MBS which again fucked up the market due to this purchase in attempt to salvage their bullshit.