The Big Short

[The Duke]

Mac's little Pavlov's Dogs.

Mac's inflated sense of self-importance.

 

[1srelluc]

Damn, I did not think a simple movie review would garner so much angst.

The way it looks Clinton, W, and The Halfrican's bunch fucked us all.....And let's not forget that faggot Barney Frank either.

 

[TNHarley]

To be fair, and I hate defending this piece of shit, but W was the one warning everyone about it. His calls to reform were shot down by the duopoly. Multiple times.
But then the mother fucker bailed them out

 

[iamwhatiseem]

And through all that, one (1) person went to jail, some smalltime trader somewhere.

The banks, among other things, were selling shit securities (with phony, paid-for AAA ratings) to people WHILE SHORTING THEM, THEMSELVES. That's why, towards the end of the movie, the prices of those shit securities stayed high for a long time.

That's a fucking disgrace. The banks, ridiculous derivatives and a complete refusal by Greenspan to regulate them damn near killed us.

And yet.... Obama gave them our money to keep them fat, not just keep them from losing money - but paid them what their profits would have been. Annnd... then gave them 0% bottomless assets to play with in the markets. WHAT A DEAL!!
The result - the stock market had record earnings and record profits in less than a year after the collapse. Meanwhile 7,000,000 Americans lost their homes. That is 15% of all households in America.
But the banks that owned the mortgages?? - no losses. The debts they held on the mortgages of those homes were paid off for them - and they got to keep the homes too!! WHAT A DEAL!!
Good thing he is for the little guy! Or one might think he wasn't!

 

[BackAgain]

The banks, among other things, were selling shit securities (with phony, paid-for AAA ratings) to people WHILE SHORTING THEM, THEMSELVES.

They can't "SHORT THEM" into thin air. They need a counterparty.
Usually another financial "professional", willing to buy a synthetic.

Those other “professionals” apparently didn’t delve into the fantasy nature of the Triple A products. A lot more homework by those “professionals” might have uncovered what Lewis reported in his book, The Big Short.

 

[Mac1958]

Obama gave them our money...

Wrong. He got out of the way for the Treasury to save the country from the Meltdown. He didn't give anyone that money.

This is why I don't bother.

 

[iamwhatiseem]

Wrong. He got out of the way for the Treasury to save the country from the Meltdown. He didn't give anyone that money.

This is why I don't bother.

"Saving the country" - this is what it looks like?
1) Despite $trillions of dollars of misrepresented by investment banks... no one went to jail.
2) Those same institutions had record profits less than a year after the collapse.
3) Meanwhile 7,000,000 Americans lost their homes.
4) 8.8 million people lost their jobs
5) Meanwhile - Fortune 500 companies were LITERALLY having the times of their lives.
6) The stock market lost 40% of it's valuation from August 2008 - February 2009.... but... by 2014 the markets regained all of that value plus another 140%. $Trillions of profits for the same people that caused the collapse.
7).... while 7,000,000 lost their homes and 8,800,000 lost their jobs.
The fat cats were swimming in TARP cash... us... FUCK YOU... hopefully you will recover in the next 10 years.

 

[Toddsterpatriot]

Those other “professionals” apparently didn’t delve into the fantasy nature of the Triple A products. A lot more homework by those “professionals” might have uncovered what Lewis reported in his book, The Big Short.

Yeah, just because you work at a big bank doesn't mean you understand MBS.
Or that you're immune to a bubble.

 

[Toddsterpatriot]

The fat cats were swimming in TARP cash..

Maybe. But they did pay it back. The US Treasury made 10s of billions in profit.

 

[BackAgain]

Yeah, just because you work at a big bank doesn't mean you understand MBS.
Or that you're immune to a bubble.

Agreed. I had to read the Lewis book (especially portions of it) multiple times to figure out what he was saying. My fault, not his. Plus, I’m not in finance or banking. It’s clear I don’t think like many of them do.

We can see how they are “creative” in some of what they do. But that doesn’t mean we are even aware of how that kind of “sausage” is even “made.”

I believe the financial “professionals” had a damn duty (as fiduciaries for their clients) to make damn sure that they at least understood what was going on. But apparently, they didn’t.

I don’t think I had ever even heard the word “tranches” before reading the book.

 

[iamwhatiseem]

Maybe. But they did pay it back. The US Treasury made 10s of billions in profit.

Which means they also made $10s Billion in profits... the same wasp that destroyed 8.8 million lives.
That is where Obama's priorities were.
And look at him now.

 

[iamwhatiseem]

Agreed. I had to read the Lewis book (especially portions of it) multiple times to figure out what he was saying. My fault, not his. Plus, I’m not in finance or banking. It’s clear I don’t think like many of them do.

We can see how they are “creative” in some of what they do. But that doesn’t mean we are even aware of how that kind of “sausage” is even “made.”

I believe the financial “professionals” had a damn duty (as fiduciaries for their clients) to make damn sure that they at least understood what was going on. But apparently, they didn’t.

I don’t think I had ever even heard the word “tranches” before reading the book.

No one cared as long as they were still making money.
It wasn't until, literally, within hours of a massive collapse that was going to take the country and the globe with it - did these people blink.
And then they were paid off, including profits, with your money.
And did they learn anything? Are they still doing the same kind of mismanagement?
You tell me.

 

[Toddsterpatriot]

Which means they also made $10s Billion in profits... the same wasp that destroyed 8.8 million lives.
That is where Obama's priorities were.
And look at him now.

The loans were a short-term solution to stop the panic and keep all the banks from failing.

They didn't keep the loans, they repaid them.

 

[BackAgain]

No one cared as long as they were still making money.
It wasn't until, literally, within hours of a massive collapse that was going to take the country and the globe with it - did these people blink.
And then they were paid off, including profits, with your money.
And did they learn anything? Are they still doing the same kind of mismanagement?
You tell me.

They might very well be doing the same kind of shit. I don’t know. But one might imagine that the SEC should know. Do they? Or are they just back to business as normal?

 

[Mac1958]

"Saving the country" - this is what it looks like?
1) Despite $trillions of dollars of misrepresented by investment banks... no one went to jail.
2) Those same institutions had record profits less than a year after the collapse.
3) Meanwhile 7,000,000 Americans lost their homes.
4) 8.8 million people lost their jobs
5) Meanwhile - Fortune 500 companies were LITERALLY having the times of their lives.
6) The stock market lost 40% of it's valuation from August 2008 - February 2009.... but... by 2014 the markets regained all of that value plus another 140%. $Trillions of profits for the same people that caused the collapse.
7).... while 7,000,000 lost their homes and 8,800,000 lost their jobs.
The fat cats were swimming in TARP cash... us... FUCK YOU... hopefully you will recover in the next 10 years.

Yes, I'm well aware of what happened in the Meltdown, and what caused it. I taught a class on it.

Blame Obama for whatever you want. I don't care.

 

[iamwhatiseem]

Yes, I'm well aware of what happened in the Meltdown, and what caused it. I taught a class on it.

Blame Obama for whatever you want. I don't care.

Blame Obama for what? The crash?
He had zero to do with it. Zero.
It's what his administration did with the TARP money that is the problem.
The same people that ruined 8.8 million lives, and hurt 10 times that many... spent the next 5 years with money raining from the sky into their pockets from TARP funds, and the profits they made from those funds.
Imagine if someone stole your car... and wrecked it. Totaled.
Your insurance company, for some reason, was not required to pay for your losses.
But the thief was not only never arrested, but the government gave him free cash to pay for his injuries he had in the wreck, and cover his old jobs wages while he was healing also. Annnd gave him 0% loans to start a business, which he did, and all he had to do was pay the loan back. And the guy has more money now then before. Meanwhile you are out a car.
That is essentially what happened between 2009-2014.

 

[The Sage of Main Street]

And yet.... Obama gave them our money to keep them fat, not just keep them from losing money - but paid them what their profits would have been. Annnd... then gave them 0% bottomless assets to play with in the markets. WHAT A DEAL!!
The result - the stock market had record earnings and record profits in less than a year after the collapse. Meanwhile 7,000,000 Americans lost their homes. That is 15% of all households in America.
But the banks that owned the mortgages?? - no losses. The debts they held on the mortgages of those homes were paid off for them - and they got to keep the homes too!! WHAT A DEAL!!
Good thing he is for the little guy! Or one might think he wasn't!

The Ringleader Brothers' Burn 'Em and Bail Out Circus

 

[g5000]

Starting under Clinton, the government forced Fannie and Freddie to buy those shit mortgages, boosting demand for them and creating an incentive to write and sell more of them.

That's a hoax invented two weeks after the collapse of Lehman by dipshits who always blame the negroes for everything. But this was a GLOBAL meltdown and no one has ever explained to me how the negroes of Iceland brought down their banks.

By the time the derivatives market exploded in growth, the GSEs were bit players. It was the broker-dealers, who were not subject to the CRA, who brought the house down.

It was all about the service fees. Pure greed. The government did not force them to do it. The government stood back and let them do it.

After they ran out of credit-worthy borrowers to loan to, they threw the underwriting laws of the Universe, which took centuries to develop, right out the window. Bush's SEC voted unanimously to allow them to do so.

When I hear people blame the CRA, I often wonder as they drove around their all-white suburbs and saw every other house foreclosing, if they said to themselves, "Gee, I had no idea Biff was a negro!"

What people want to bleev and what is reality never seems to induce cognitive dissonance in idiots. Because that requires cognition to begin with.

Clinton does get his share of blame. But only because he went along with exempting derivatives from regulation.

Handing out junk loans and HELOCs was bad enough. But derivates were able to exponentially amplify the consequences.

 

[Toddsterpatriot]

That's a hoax invented two weeks after the collapse of Lehman by dipshits who always blame the negroes for everything. But this was a GLOBAL meltdown and no one has ever explained to me how the negroes of Iceland brought down their banks.

By the time the derivatives market exploded in growth, the GSEs were bit players. It was the broker-dealers, who were not subject to the CRA, who brought the house down.

It was all about the service fees. Pure greed. The government did not force them to do it. The government stood back and let them do it.

After they ran out of credit-worthy borrowers to loan to, they threw the underwriting laws of the Universe, which took centuries to develop, right out the window. Bush's SEC voted unanimously to allow them to do so.

When I hear people blame the CRA, I often wonder as they drove around their all-white suburbs and saw every other house foreclosing, if they said to themselves, "Gee, I had no idea Biff was a negro!"

What people want to bleev and what is reality never seems to induce cognitive dissonance in idiots. Because that requires cognition to begin with.

Clinton does get his share of blame. But only because he went along with exempting derivatives from regulation.

Handing out junk loans and HELOCs was bad enough. But derivates were able to exponentially amplify the consequences.

That's a hoax invented two weeks after the collapse of Lehman by dipshits who always blame the negroes for everything.

HUD didn't force Fannie and Freddie to buy crappy mortgages?

 

[g5000]

That's a hoax invented two weeks after the collapse of Lehman by dipshits who always blame the negroes for everything.

HUD didn't force Fannie and Freddie to buy crappy mortgages?

When Lehman collapsed, the same dipshits in Congress asked him how the CRA had affected Lehman's collapse.

His answer: "De minimus."

The broker-dealers were not subject to the CRA. Goldman, Lehman, Merrill, Bear, JP Morgan, Morgan Stanley.

The vast majority of "crappy mortgages" were happily and willingly created by the mortgage brokers and the broker-dealers. In fact, they worked very hard to get the US government to get out of their way so they could make more and more crappy mortgages.

And the damage caused by those mortgages was exponentially amplified by the derivatives built around them.


Anyone who says otherwise is totally ignorant.