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 Post subject: The Big Short (Movie)
PostPosted: Sun May 22, 2016 10:24 am 
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Too Big to Fail

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I watched this last night and thoroughly enjoyed it. Some of the Characters I was aware of mainly via the Pin Burry, Hockett. A good yarn a bit "cinema" but for someone who hadnt been either a Pinster or with a good knowledgeof financial instruments a good starting point..Anyone else see it or have thoughts


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 Post subject: Re: The Big Short (Movie)
PostPosted: Sun May 22, 2016 10:28 am 
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Of Systemic Importance

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The characters were actually that eccentric.

Excellent book. Great movie - best of all on the GFC.

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 Post subject: Re: The Big Short (Movie)
PostPosted: Sun May 22, 2016 10:46 am 
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Excellent movie, and the explanation that the quantum of derivatives on spot >>> quantum of actual traded spot (i.e. the "bets on the bets" market), is still today the most under appreciated risk of markets (and last source of real profits for specific iBanks).

Mark Baum is a toned down version of Steve Eisman (can't overstate this enough).

Margin Call is a much weaker Big Short, but Jeremy Irons speeches are worth it (as long as you watch a streamed version).

Well done to Brad Pitt (the Big Driver of getting Michael Lewis' books on film)

Flash boys next .....


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 Post subject: Re: The Big Short (Movie)
PostPosted: Sun May 22, 2016 12:20 pm 
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Too Big to Fail
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Saw this film for the first time a few months ago. Thoroughly enjoyed it - have been recommending it to all and sundry since.

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 Post subject: Re: The Big Short (Movie)
PostPosted: Sun May 22, 2016 1:04 pm 
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Too Big to Fail

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observer35 wrote:
Excellent movie, and the explanation that the quantum of derivatives on spot >>> quantum of actual traded spot (i.e. the "bets on the bets" market), is still today the most under appreciated risk of markets (and last source of real profits for specific iBanks).

Mark Baum is a toned down version of Steve Eisman (can't overstate this enough).

Margin Call is a much weaker Big Short, but Jeremy Irons speeches are worth it (as long as you watch a streamed version).

Well done to Brad Pitt (the Big Driver of getting Michael Lewis' books on film)

Flash boys next .....


Except The Big Short is Hollywood and Margin Call is about as close to the real Wall St as you will see on film..

And neither mention Basel II or VAR. Which is where all actual GFC explanations should start and end. The rule of 2008 is still valid- if someone is trying to explain why the big banks all collapsed and they dont mention Basel II or VAR then they dont know what they are talking about still holds. If it had not been for Basel II and VAR 2006-08 would just have been a rerun of 1996-98.

Then there was HUD suing banks for not making subprime mortgages.. and DB is still insolvent 10 years later..and the ECB is now the main (direct/indirect) buyer of ECB zone sovereign debt - which is why interest rates are negative.

Real life is a lot more bizarre and surreal than anything Hollywood can dream up. And Lewis is way way beyond his sell by date when it come to finance. His finance world disappeared the day Michael Milken went to jail.


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 Post subject: Re: The Big Short (Movie)
PostPosted: Sun May 22, 2016 2:25 pm 
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jmc wrote:
And neither mention Basel II or VAR. Which is where all actual GFC explanations should start and end. The rule of 2008 is still valid- if someone is trying to explain why the big banks all collapsed and they dont mention Basel II or VAR then they dont know what they are talking about still holds. If it had not been for Basel II and VAR 2006-08 would just have been a rerun of 1996-98.

Basel II and VAR are only side-shows in the illusion of any kind of control or audit in the FED's never-ending process to ramp US (and Global) asset prices via iBanks. When the SEC decided not to regulate derivatives for iBanks, they effectively threw out all the Basel II (and III) and even Dodd Frank rules of having any relevance to US banking.

However, as Deutsche Bank's share price is currently showing (one of the greatest global derivative writers), the system will ultimately bring itself down (and the short-term greed that drives it).

Lewis was one of the first outside of core Wall St to correctly identify the potential collapse of Salamon as being to due to their withdrawal from Greenspan's then ongoing QE program (not called QE then), and nothing to do with the treasury bonds auction program (which was only mildly profitable - hence why Salamon tried to rig it), and the massive systemic implications for Wall St. (hence its bailout, which led to Wall St banks increasing their aggression on how they used Greenspan's QE flows, which ultimately led directly to the GFC).

Even today, people outside of Wall St. bond desks, don't fully understand the volume of QE that Greenspan ran through the Wall St bond desks in the 1990s (and let the iBanks pocket the carry). But Lewis did.

He is one of the few financial writers who understand the knowledge base that I once had access to, and how the "game" was set up. Despite his writings, I don't think most people (even some on Wall St.) really understand what he was saying.


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 Post subject: Re: The Big Short (Movie)
PostPosted: Sun May 22, 2016 2:53 pm 
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Saying that the Big Short is better than Margin call is eehhhh a big call. I haven't seen the Big Short and I loved Moneyball but Margin call is excellent. This scene with Paul Bettany is probably the best encapsulation of the reason for the existance of modern finance I've seen in film.

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 Post subject: Re: The Big Short (Movie)
PostPosted: Sun May 22, 2016 2:59 pm 
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tulip wrote:
Saying that the Big Short is better than Margin call is eehhhh a big call. I haven't seen the Big Short and I loved Moneyball but Margin call is excellent. This scene with Paul Bettany is probably the best encapsulation of the reason for the existance of modern finance I've seen in film.

Saying its a big call .... without having seen both ..... is also a big call :D
(but ultimately each to their own - Margin Call brings a lot of memories back)
You are in for a treat:
cough

I'm sure if people want to find the movie online they can - mod.


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 Post subject: Re: The Big Short (Movie)
PostPosted: Wed May 25, 2016 8:40 pm 
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I've heard that Inside Job is good as well, some gave me the link when we spoke about Big Short.

https://www.youtube.com/watch?v=D9ub25WjEK0

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