Confidence is a fragile thing, especially in financial markets it disappears faster

Timothy 2022-09-10 03:38:36

I have always wanted to understand the subprime mortgage crisis through real interpretation, and I watched "The big short" (big short) and "Too big too fail" (too big to fail).
The two films are about the same thing, but from different perspectives. "The big short" starts from the perspective of the bears. Several young people who discovered the source of the crisis took advantage of the flaws and made a fortune in the capital market. Some people say that this is a disaster for the country, but capital is ruthless, and there will never be warmth in the financial world.
"Too big too fail" is from the perspective of regulators, and the protagonist is how Paulson (the US Treasury Secretary) did everything possible to protect the big investment banks in the United States after the crisis, and prevent the systemic collapse caused by it. . The government took action and injected capital into the big investment banks. The crisis did not spread on a wider scale, and the entire system was preserved. These big investment banks also recovered after a few years, and no one paid any price for this. After a period of "nothing new on Wall Street", the sun shines on this land again.
Finance is indeed the most shameful thing. It can magnify the dark side of human nature and increase it by geometric multiples. The multiplier effect brought by this has an immeasurable impact on human life.
Finance is also the most ingenious invention of human beings. The backdoor of financing, mergers and acquisitions~~ These terms are all entanglements of interests.
Digress from the topic~~
It's a chatty movie, but the scene is very detailed, and it perfectly reproduces the history of the United States in 2007. The scene of Lehman Brother's fall is full of blood, and the CEO's ten-minute performance is also very real.
In general, a relatively good-looking movie, considered a financial science popularization, has a different feeling from a book.

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Extended Reading

Too Big to Fail quotes

  • Richard Fuld: [on the housing crisis] You know, people act like we're crack dealers. Nobody put a gun to anybody's head and said, "Hey, nimrod, buy a house you can't afford, and you know what? While you're at it, put a line of credit on that baby and buy yourself a boat."

    Joe Gregory: [chuckles] You heard anything from Buffett?

    Erin Callan: He's asking for preferred shares at 40, with a dividend of nine percent.

    Richard Fuld: [annoyed] We were just at 66. What the fuck?

    Joe Gregory: Maybe it's just an opening gambit, Dick.

    Richard Fuld: Sounds more like a goddamn insult!

    Erin Callan: Dick, we're at 36 right now. We haven't been anywhere near 66 in months. The markets like Buffett. His name will push the price up overnight.

    Richard Fuld: You know, I don't care who he is. I am not spending $360 million a year for the pleasure of doing business with him. Real estate will come back.

    Joe Gregory: Koreans have been sniffing around.

    Richard Fuld: There you go. And they won't steal us blind. I've seen this before: CEOs panic and they sell out cheap. Right now, the Street's running around with its hair on fire, but the storm always passes. We stand strong, and on the other side, we'll eat Goldman's lunch.

    Erin Callan: So what do we do about Buffett?

    Richard Fuld: Screw Warren Buffett.

  • Ben Bernanke: [Having breakfast with Henry Paulson] Lehman's down another 10%.

    Henry Paulson: You are not gonna let me get down a single bite, are you?

    Ben Bernanke: This is why I have oatmeal.