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  • Essay / The Big Short: Depiction of the 2007 Stock Market Crash

    The Big Short is a film based on a non-fiction film covering the 2007-2008 financial crisis before it even happened. This film not only focuses on the events that led to the financial crisis, but also on the men who saw the crisis in advance. The film uses some well-known actors such as Ryan Gosling, Steve Carell, Christian Bale and Brad Pitt. The Big Short tells the story of four leading underdogs in the financial world who predict that the market will collapse before anyone else, also known as the housing bubble collapse. The Big Short highlights the fraud of Wall Street companies. These companies offered loans to people, but without ensuring that they would be repaid. They have no idea what is going on around them. When house prices began to fall and people stopped paying mortgages they couldn't afford, the financial system collapsed. The film features many different styles that address the scenes in the film and how the real estate market collapsed. That being said, this led to the Great Recession. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Jared Vennett, also known as Ryan Gosling, is an arrogant Wall Street trader. He also works with Mark Baum, but he only cares about earning his share of the profits and not about working together. Jared Vennett discovers Burry's credit default swap objective. Jared is also a hedge fund manager. He teams up with Burry to invest in the swaps market. It also observes the CDO or collateralized debt securities. The CDO creates risks in the market. Michael explains that this housing bubble will cause the economy to collapse. Vennett understands this analysis from Burry, who also learned from one of the bankers who sold Burry an early trade. Vennett used his skills as a quantitative analyst to approach the methods of the financial world. This helped him verify that Burry's idea is correct. He then decides to enter the market and sell swaps. Vennett ended up earning $47 million in commissions from selling swaps. One of the main characters, Michael Burry, also known as Christian Bale, was the hedge fund manager. Michael recognizes that the US real estate market is similar to a bubble inflated by high-risk loans, which causes the economy to slow down. Michael then creates a means such as the credit default swap which allows him to short sell the real estate market. This sparks a war between him and his clients. They become very angry. On the other hand, the bank was saying that the real estate market was stable and that the market continued to increase, which was not entirely correct. People began to fear being shorted by Burry and wanted their money back. As they tried to get their money back, he placed a moratorium on withdrawals, so they were unable to do so. Ultimately, his investments paid off and he earned $100 million for himself and $700 million for his investors. It ended up producing 500% returns for investors who actually didn't leave it throughout this process. Mark Baum also known as Steve Carell in the movie The Big Short. Baum is an angry and brutal hedge fund manager. He thinks Wall Street isn't fair and he's had enough of it. Its goal is to shut down all fake traders and funds. He is led to a goal whose common objective is.