Don't confuse financial risks with malicious fraud, Reivew on The Big Short

This movie describes an independent story in which three funds anticipated the subprime mortgage crisis and shorted subprime mortgages under the general background. Regarding the securitization of real estate loans itself is a good thing, due to the 2008 financial crisis in China, there is no corresponding product so far, purely because of choking. The financial crisis lies not in securitization itself, but in reducing investment risks. Financial investment risk diversification and packaging cover up the facts, coupled with the benefit of credit rating agencies, leading to fraud. The irony is that reducing risk has become a cover-up, and credit rating has become an exchange of benefits.

So only these three groups of people belong to smart people, do they only see the truth? Obviously not. They just shouted the kid who broke the emperor’s new clothes. As a result, they withstood the tremendous pressure and won respect. But it is also very possible that they could not withstand the pressure of funds before dawn and left the scene sadly. Obviously, they almost Nothing.

Is the truth really that important when the whole society is in hustle and bustle? Some people are stupid, while others are greedy. When greed is supplemented by fraud and forming alliances, the whole society becomes a slaughterhouse. When it cannot be closed, the government will come out to save the field. Taxpayers pay the bill. Greedy fraudsters. The seemingly stupid innocent Feng Danyunqing started a new round of reshuffle.

This is not a product risk, this is malicious fraud, but what can be done, this is a game for smart people.

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