In 2008 the financial market was rocked when Bear Sterns closed its doors, having over invested it’s entire portfolio in involvement mortgage backed securities. This triggered a complete meltdown of the financial markets resulting in Hank Paulsen’s famous 2 page recommendation for 700 billion dollars in emergency govt funds.
The root of the failure was the hyper sale, investment in and criminal misrepresentation of subprime mortgages as means for investment banks, trading houses, hedge funds to make money from duped investors.
The movie The Big Short starring Steve Corell, Ryan Gosling, Christian Bale, with Margot Robbie, Anthony Bordain, illustrates the insanity and the ultimate betrayal of the American people and investors worldwide. The best part of the movie is the way that the typically confusing financial jargon is explained, giving you insight that the those closest to the scandal hid the truth by pretending that fake math and big words ensured the validity of mortgages that should have never been granted.