Discussion
Afternoon,
Watching it again last night - great film.
When they all start selling their position, who do they sell them to ??
Brad Pitt offers the Brownfield $200m position to Credit Swiss.
He describes them as dog ****, and yet the guy still buys them.
What is he buying and where is his angle to make money on them ?
Thanks
Watching it again last night - great film.
When they all start selling their position, who do they sell them to ??
Brad Pitt offers the Brownfield $200m position to Credit Swiss.
He describes them as dog ****, and yet the guy still buys them.
What is he buying and where is his angle to make money on them ?
Thanks
My understanding is that Brad Pitt is selling Brownfield's short positions. Credit Swiss are buying them to offset their long positions.
There is a scene with Michael Burry (Christian Bale) when he is on the phone to Goldman Sachs and they are "correctly" pricing his swaps. He says "I think you mean you've secured a net short position yourselves so you're free to mark my swaps accurately for once. Because it's now in your interest to do so."
Credit Swiss are trying to get to the same net short position as Goldman.
There is a scene with Michael Burry (Christian Bale) when he is on the phone to Goldman Sachs and they are "correctly" pricing his swaps. He says "I think you mean you've secured a net short position yourselves so you're free to mark my swaps accurately for once. Because it's now in your interest to do so."
Credit Swiss are trying to get to the same net short position as Goldman.
Then you have Margin Call where it’s the other side, an institution packaging the ‘big piles of s
t’ iirc, into MBSs, and realise they’re holding a big pile of st and sell it all.
It all became a self fulfilling prophecy really... the nature of humans and emotions, greed, and the boom/bust cycle.
People can’t stay in boom mode forever. And the higher it goes the more easily spooked they get.
Makes you think about Q3/4 this year... is reality going to bite?
t’ iirc, into MBSs, and realise they’re holding a big pile of st and sell it all.It all became a self fulfilling prophecy really... the nature of humans and emotions, greed, and the boom/bust cycle.
People can’t stay in boom mode forever. And the higher it goes the more easily spooked they get.
Makes you think about Q3/4 this year... is reality going to bite?
eyebeebe said:
This x100. And many others.
It‘s quite worrying the amount of people who have watched the Big Short and think it is a documentary rather than a Hollywood story.
I’ve seen it a couple of times and have literally no idea what its all about, other than the fact that the guy saw it coming and made a mint. It‘s quite worrying the amount of people who have watched the Big Short and think it is a documentary rather than a Hollywood story.
How he made that mint, and how it all transpired is completely obscure to me.
The Big Short is easily one of my favourite films of all time. I have probably watched it 5 or 6 times in full so far.
As for other financial films, most people will have seen these, but if you haven’t, you should watch them:
Margin Call
Rogue Trader
Too big to fail
Boiler Room
Wall Street
The Wizard of Lies (Film about the Bernie Madoff Ponzi scheme with Robert De Niro)
Edited to add really geeky watch related stuff:
I collect watches, and the choice of watches worn by the characters in this film are so good that I have started to acquire some of the same models as seen in the film.
Notable watches that are featured:
Rolex Submariner as worn by Mark Baum (Steve Carell)
IWC Portuguese Chronograph as worn by Jared Vennett (Ryan Gosling).
Rolex Oysterquartz as worn by Vinny Daniel (Jeremy Strong)
Breitling Emergency (as worn by Ben Rickert (Brad Pitt).
Bonus watch fact: The Rolex Sub worn by Steve Carell in the film is a 116610 ‘maxi case’ model, which wasn’t released by Rolex until 2010, and yet the film is set in 2007-2008.
As for other financial films, most people will have seen these, but if you haven’t, you should watch them:
Margin Call
Rogue Trader
Too big to fail
Boiler Room
Wall Street
The Wizard of Lies (Film about the Bernie Madoff Ponzi scheme with Robert De Niro)
Edited to add really geeky watch related stuff:
I collect watches, and the choice of watches worn by the characters in this film are so good that I have started to acquire some of the same models as seen in the film.
Notable watches that are featured:
Rolex Submariner as worn by Mark Baum (Steve Carell)
IWC Portuguese Chronograph as worn by Jared Vennett (Ryan Gosling).
Rolex Oysterquartz as worn by Vinny Daniel (Jeremy Strong)
Breitling Emergency (as worn by Ben Rickert (Brad Pitt).
Bonus watch fact: The Rolex Sub worn by Steve Carell in the film is a 116610 ‘maxi case’ model, which wasn’t released by Rolex until 2010, and yet the film is set in 2007-2008.
Edited by anonymous-user on Friday 25th June 18:11
anonymous said:
[redacted]
In its most simple form, the Credit Default Swaps bought, were a form of collateral gap risk. Basically money had been lent against housing stock, if the value of the housing stock fell, the ability of banks to leverage (or in Lehman's case) fund itself (remember banks have 2 primary functions - extension of credit AND maturity transformation so they lend money longer term than where they raise it). Those protection products or insurances have a Market value, IF the reference assets or collateral is over valued then the buyer will be paying margin. When the true value of the collateral was known (or correctly) marked, the purchaser can collect on the collateral shortfall.
It's similar to GAP insurance on a car. The only difference is the size of the markets, oh and you can trade the CDS or insurance products without having the collateral assets themselves. Well sortof if you like naked directional punts and have no risk management function.
It's nothing like crypto, as crypto currencies are not involved in monetary policy transmission (yet) like banks. If crypto goes bang, only punters lose money. If your banking sector goes bang, it's back to the stoneage. That's why the response to 2008 / GFC was $10trillion in stimulus.
Lord Marylebone said:
The Big Short is easily one of my favourite films of all time. I have probably watched it 5 or 6 times in full so far.
As for other financial films, most people will have seen these, but if you haven’t, you should watch them:
Margin Call
Rogue Trader
Too big to fail
Boiler Room
Wall Street
The Wizard of Lies (Film about the Bernie Madoff Ponzi scheme with Robert De Niro)
Where’s Trading Places and Pi?As for other financial films, most people will have seen these, but if you haven’t, you should watch them:
Margin Call
Rogue Trader
Too big to fail
Boiler Room
Wall Street
The Wizard of Lies (Film about the Bernie Madoff Ponzi scheme with Robert De Niro)
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