There are three main story lines in this film
Mike
1. The beginning of the story tells a little boy with fake eyeballs playing a baseball game. During the game, the little boy’s eyeballs fell out, which brought bad feelings to the little boy and his teammates. And his opponent also brought bad feelings, and the little boy stopped his game. This place is the background of the withdrawn character of Mike, one of the protagonists who may want to explain. Why does the fall of false eyeballs in the background design suggest that the invisible people are often better able to see the truth of the world? Can you see the real evil in the world? The screen turns to the scene of the little boy after he grows up.
Mike is interviewing, an applicant, from their conversation led to the data that Mike wants to investigate mortgage defaults, and at the same time explained that Mike's personality is very withdrawn, arrogant and arrogant, and he does not like to wear slippers completely maverick. Of a person.
After investigating a lot of data, it was discovered that there were a lot of mortgage defaults. Mike decided to make a vacancy loan, but the market did not provide any way to go short, so Mike found a bank and wanted the bank to sell it. Such a product is called a credit default swap. A mortgage refers to a 30-year mortgage plan of the lender and an adjustable-rate mortgage. If a large area of the loan cannot be repaid, the bank will raise the interest rate. As a result, more loans could not be repaid, which led to a greater mortgage crisis. Mainstream financial institutions as well as the government and the country are very optimistic about the housing loan market, and will carry out a second package sale of housing loans. Mike looked at the unoccupied house loan and believed that the borrower could not pay off the loan in the later period, and at the same time, the packaged product would have a sharp drop in price, buying credit default swaps from the bank. If the mortgage did not fall, then Mike paid a sum to the bank every year . If the price of the subprime loan falls, Mike can sell the subprime loan contract to the bank at the contracted price.
Mike immediately took action to buy such a credit default swap contract from many banks. Many bank managers celebrated such a fool and gave themselves money. This matter Mike was questioned by his superiors, ridiculed by his colleagues, the withdrawal of funds from customers, pressure from various quarters, and finally self-doubt.
2. Mark
In the movie, it is explained that Mark is a very human capitalist. In his heart, Mark is very hostile to Wall Street. He believes that the work of Wall Street people is inhuman without any morality. He has only money in his eyes. At the same time, Mark is a very He is impatient and likes to swear, and he is especially easy to turn his face with others. Mark participated in the loan for vacancies due to a deficit of 27 million in the bank employee's Winnett account, so he found Mark and wanted him to participate in the loan for vacancies. In the plan, and paid a small part of the reward to herself after making a profit, Winnett explained why it would usher in huge profits to make a vacant loan. That scene showed a particularly strong speech ability, and (worth learning) moved Mark, who was simply difficult to communicate. . Mark was deeply attracted by such a plan, but he did not directly agree to Winnett’s request. Mark came to a small town to personally inspect the real estate situation in the town. During the inspection, he saw the vacant houses and The landlord’s loan was cut off and a large number of residents in the small town sold their properties at low prices, so they immediately reached an agreement with Winnett for a plan to make a vacancy loan.
3. Charlie and Danny
Charlie and Danny are two common people who used their 110,000 deposits to make a long profit to 30 million. They came to Morgan Bank with a dream, hoping to join their international swap agreement. In this way, they can The international swap agreement for higher-level options trading is a high-threshold agreement that can prevent low-level retail investors from trading on the floor, but was told that entering such an agreement requires funds of 1.1 billion, Charlie and Danny were humiliated. And they felt ignorant and frustrated that they didn’t know that the funds needed to reach 1.1 billion. When they were about to leave, they accidentally found a plan for vacant loan, so they went back and carefully investigated whether such a plan was feasible. The answer was to do vacant loan. It will make huge profits, and at the same time, the response from the consultation with the capitalists who have withdrawn from Wall Street is still a great plan to participate in.
During the course of a year, they kept paying for the insurance, and the insurance cost was about to crush them. These three groups did not know why this happened. The rate of housing supply cuts in the market was getting higher and higher. More and more people cannot afford to pay their mortgages, but the price of subprime mortgage contracts has not fallen, but has increased. The increase in the price of packaged mortgage contracts means that the insurance premiums paid by these three groups have risen. Mike is facing customers His divestment, and his boss's verbal anger at him. Mike has always believed in his own judgment, but the phenomenon of the market made him suspect that he could see his wavering. So I saw his emotional breakdown, vented his anger through drums, and lay in despair in the office, and saw that the increasing pressure of the valuation of the funds he managed from minus 5% to minus 10% to minus 20% made Mike overwhelmed. But Mike still did not change his original intention and still believed in his own judgment. Mike found in the terms of the contract that he had the right to close the request for refund of the customer's withdrawal of funds, so Mike issued a letter to all investors that the withdrawal of funds was not allowed, and received at the same time When several investment clients were sued, the pressure was enormous.
Here, I think Mike is very worthy of admiration, because man is a herd animal. Facing the doubts of the market, first of all he has his own unique insights. You can see that most people can’t see the phenomenon and found a phenomenon like this. Nothing can change. He firmly believes in his own view that such a person can be successful. If I encounter such a situation, I may not even be able to fully believe in myself, and I will fall into the depths. Self-doubt. Follow the crowd, compromise, and change. Mike is always fighting alone. He hasn't had any communication with anyone. From the beginning to the end, he is completely alone in the fight. This also reflects that the great trader is in a very lonely state.
Mark is an irritable capitalist. The source of his irritability is that his buddy committed suicide by jumping off the building and he deeply despises the ugliness of Wall Street sucking blood and killing people without seeing blood. He actually wanted to do vacant loans to fight Wall Street. He is a team fighting. Although his character is very irritable, no one of his team partners questioned him, and he was very, very supportive of Mark from beginning to end. When the loan price skyrocketed again, they did not doubt Mark. They continued to investigate and came to Las Vegas to explore the truth. They found that the rise in subprime mortgage prices is a bigger conspiracy, and the future bubble will definitely happen. They broke down and they shorted the subprime mortgages with their full positions. In fact, I envy Mark. No matter how irritable his personality is, how bad his temper is, there is a team that supports him like this, which makes people feel very backed.
Charlie and Danny
After shorting the subprime mortgage, it was found that the price had risen and was on the verge of bursting. So I’m here for help. I’m very curious. As a capitalist who retired from the world after his success, why would he help two unknown juniors? I have never figured out this. Danny and Charlie came to Las Vegas. Gass conducted an investigation into subprime mortgages. They found that bankers and financial institutions were arrogant and ignored the risks of subprime loans. So they also decided to increase their positions and short subprime loans, but due to the size of their funds, they did not Going to buy subprime mortgages with a higher price of 3A to make A-level or even B-level sub-prime mortgages, so under the opportunity of this era, they even obtained more profitable profits than Mark and Mike.
I also envy Charlie and Danny, because there is such a good partner. Two people work together to advance and retreat together, share the joy of success, face the blow of the dilemma, and work together to find a way to solve the problem. Who doesn't want to have such a one in life? My friend and myself have moved forward together on the road of life.
Finally, the subprime mortgage crisis broke out in 2008, which triggered the global financial crisis. The three of them received unprecedented profits. Mike left the fund after his fund’s valuation reached 489% and closed his fund. What does it mean? ? Perhaps the long-term lonely struggle made him no longer want to engage in such a lonely transaction. Mark shorted the subprime mortgage to obtain unprecedented profits, but later found out that his parent company was doing long mortgages, and the amount of long was ten times that of him. His short fund profit will subsidize the parent company. Mark is very depressed. It is not because the profits are subsidized to the parent company, but because he cannot be responsible for his investors. So he thought of shorting the stocks of his parent company in the end. Under the circumstances, the profit gained by selling off oneself is responsible to one's own investors. It is explained in the film that after making a profit this time, Mark's personality has become more gentle. Perhaps after seeing the darkness of the world, the cracks in his heart flashed with light, and that is where the light shines.
After Charlie and Danny made the profit, they were very happy, but Ben warned them not to be so happy, because the money you earn is making the country difficult to make money. In fact, I am also thinking about this question. Human nature will have a suspicion, but I am thinking why everyone is going to pack, mortgage drums spread the Ponzi scam, all people are involved in such a money-making chain, isn't this behavior more hateful than short-selling them? The emergence of short-selling may better curb the occurrence of bubbles and avoid the tragedy of tragedy.
At present, the proportion of housing loans in our own country is very staggering, and the amount is huge, but I believe that our country's control of this piece of credit should be very strict. The real estate bubble. As everyone knows, the country wants him to make a soft landing. It is also very determined. What is finance? Maybe the outbreak of the third world war in the future is not necessarily a war of weapons, but a financial war. Finance is a war without gunpowder. For example, the degree of cruelty that the US Goldman Sachs used to destroy Greece and disintegrate EU finance is unimaginable. Therefore, the only way to make a country strong is finance.
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