The Big Short
colleague recommended the movie "The Big Short", so I looked repeated 2 to 3 times.
Although the job has just changed to the financial industry, as a financial industry Rookie, there are still many things that I can't understand when watching this movie for the first time. Through some inquiries and reviews of information, I hereby record.
1.
MBS MBS is the abbreviation of Mortgage-Backed Security, housing mortgage asset securities.
For specific details, please refer to ( https://en.wikipedia.org/wiki/Mortgage-backed_security )
. For things you don’t understand, you should be more careful. You think you understand the things that cause trouble.
--Mark Twain 2. ARMs
adjustable interest rate loans,
one is the market interest rate (generally refers to the benchmark interest rate of the national debt), and the other is some interest rate index calculated based on the capital cost of savings institutions. When the interest rate is adjusted, it is often increased by a certain range based on the reference interest rate.
When the principal is required to be paid or the loan interest rate is raised in the future, the repayment amount of such loans will increase, which often makes the borrower unable to repay the loan, leading to bad debts. Finally, there are so-called "Ninja" loans in the market, that is, loans for people with "no income, no job, and no assets."
I am the master of my destiny, I am the commander of my soul. --Mandela
3.
Subprime lending is a type of loan provided by banks or lending institutions to customers who are not eligible for prime rate loans.
4.
CDO Debt Obligation (Collateralized Debt Obligation), referred to as CDO, is a structured investment product in the form of credit-linked notes. It is a securitized product that includes asset-backed bonds (ABS) and is composed of a combination of debt.
Debt-backed securities were widely used in the financial industry from 2000 to 2007. Among them, products called synthetic debt-backed securities (replacement of debt itself with derivative products related to debt) are considered to be the real estate bubble in the United States and subsequent subprime mortgages. The intensification of the crisis has contributed to the flames.
There are products that package different CDOs into CDOs, which are called CDO squares.
5.
ISDA International Swaps and Derivatives Association (ISDA, International Swaps and Derivatives Association) is a non-profit organization, established in 1985, currently has more than 830 institutional members from 53 countries, including the world mainly engaged in derivatives Commodity trading financial institutions, government organizations, companies that use OTC derivatives to manage business risks, and major international law firms, etc. Since the establishment of ISDA, it has made significant contributions or participation in derivative product varieties, ISDA legal documents, netting (netting) and collateral (collateral) legal opinions, and risk management. At the same time, it is also committed to participating in the maintenance of close communication channels for government agencies of various countries to promote a more sound development of this trading market.
So far, some knowledge blind spots in this movie have basically been explained clearly.
Returning to the movie itself, without discussing acting skills and performance forms, the content of the movie is extremely rich. Briefly enumerate a few thoughts:
(1) If art is derived from life higher than life, the content of the film should be exaggerated under the tension of art; if it is said that reality is often more exciting than the movie (compared to becoming famous) And Leicester City), the real motives and competition behind the subprime mortgage crisis around 2008 should far exceed reality. Of these two options, I choose the latter.
(2) Books such as "Out of Control" and "Black Swan" can partially explain the laws of such business cycles. Although the protagonists in the movie often say that the entire financial system is cheating, whether the economic cycle will inevitably repeat the Marxist economic crisis theory and Keynes’s theory, whether there are some negative feedback effects that can be offset (personal paranoia), thus making the financial The negative feedback capital of each link in the system can still be profitable, and the risk is relatively balanced and slowly released from it.
(3) The power of knowledge is very powerful, the power of courage is very powerful, and the power of human beings is very powerful.
(4) The gap between people and people is sometimes really bigger than the gap between people and animals. If the facts are consistent with the 28 fixed rate (in fact, the 19 fixed rate is more often), visually inspecting the gap between yourself and the protagonists in the film is like the CDO of the CDO, which is about 28 times.
(5) Mark Twain's words in the movie made me interested in Mark Twain's past remarks. Wisdom and insights will not be absorbed by humans like water. Humans are not sponges, they are more like stones, and occasionally they can drip through rocks.
View more about The Big Short reviews
