The Big Short Essay

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ONE’S WEAKNESS COULD BE OTHER’S STRENGTH
“The Big Short” is an adaptation of Michael Lewis’s best-seller of the same name. The movie narrates a handful of the main players in the creation of the credit-default swap (CDS) market who attempted to bet against the collateralized debt obligation (CDO) bubble and thus ended up obtaining a financial advantage from the global catastrophe of 2007–08. The movie primarily focuses on the eccentric nature of the type of person who bets against the market or goes against the grain.
Adam McKay, the director of “The Big Short” realizes the fact that financial jargons and the chronology of the financial calamity is highly complex and intricate for conventional audience to grasp in a two-hour movie. Thus, he utilizes a effortless, yet aesthetic approach for describing the tools, from, credit-default swaps, subprime mortgages and tranches to collateralized debt obligations (CDOs) and mortgage-backed securities (MBS) that caused the global economy to take a downward plunge.
The story introduces itself by unfolding the work of hedge fund manager Michael Burry (played by Christian Bale), who identifies that …show more content…

Hedge fund manager Mark Baum (Steve Carrell), pertaining to his skepticism in the system, unites with Burry in investing in the credit default swap market. Extreme greed, conflict of interest and deceptive activities in the market induces him to bet against the market and simultaneously exposes him to great unease over the repercussions of housing market crisis. He identifies that defectively structured loan packages known as collateralized debt obligations (CDOs) have been rated AAA’s and are intensifying the mortgage dilemma. Baum awaits the last minute sell and leaves with his fund value reaching at USD 1 billion. Jared Vennett on the other side, makes USD 47 million in

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