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
  • Destin 2022-06-24 20:22:55

    In the first half, I read the wiki, and in the second half, I remembered the impact of the financial crisis on small civilians like me in the last time in France. The performance of the stars was very exciting, but Paulson was cleared of suspicion. I don't know if Lao Bao invested any money, and the four stars dropped by one.

  • Deja 2022-06-24 16:06:35

    The American media and the producers and directors of some documentaries are really excellent. They focus on major social issues and can quickly record history in their own way. This film is a good example. I read a few about the financial crisis in 2008, and they all have their own priorities. This film starts from the response of the US Treasury Department, because the Secretary of the Treasury is unlikely to be interviewed in the form of a documentary, so they use the form of this drama

Too Big to Fail quotes

  • Michele Davis: They almost bring down the US economy as we know but we can't put restrictions on how they spend the $125 billion we're giving them because... they might not take it!

  • Chinese Official: There was an approach last month from Russia. They have considerable holdings in Fannie and Freddie as well. They suggested we coordinate and without warning dump hundreds of billions of Fannie and Freddie's bonds onto the market.

    Henry Paulson: [Flabbergasted] That would be...

    Chinese Official: Chaos. The amount of debt your country carries is a terrible vulnerability.

    Henry Paulson: But you...

    Chinese Official: We declined. Respectfully. Even in the US it seems the relationship between the government and private industry isn't so simple.