The Big Short Movie Review Assignment: Housing Markets

The Big Short Movie
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The Big Short Movie
The Big Short Movie is a film about how a few people who managed to foresee the crumbling of the housing markets and made enormous profits from credit default swaps. First of all, the movie takes one to the beginning when banks managed to make money out of mortgage bonds. However, the banks run out of mortgages and thus decided to fill the bonds with risky mortgages or what is often known as subprime. At the time, the housing market was one of the strongest in the US and few foresaw its downfall. However, risky mortgages were always going to catch up with the banks because according to the film, banks were not concerned with one’s income or their ability to be able to pay the loans. Applicants were not turned down, and this led to an influx of individuals who had mortgages but could not manage to pay them.
The housing bubble in the US earmarked one of the most brutal financial crisis the world had ever witnessed. Banks had become careless in their issuance of mortgage loans. One of the things that capture one’s attention from the movie is the explanation that is offered regarding the bank’s seemingly shrewd ways of re-introducing failed bonds. Banks thought that they were making shrewd and perceptive decisions because whenever the market deemed a bond risky, the banks only wrapped it up again in sellable ideologie...