The Big Short Family Review

In 2006-2007 a group of investors bet against the United States mortgage market. In their research, they discover how flawed and corrupt the market is.Three separate but parallel stories of the U.S mortgage housing crisis of 2005 are told. Michael Burry, an eccentric ex-physician turned one-eyed Scion Capital hedge fund manager, has traded traditional office attire for shorts, bare feet and a Supercuts haircut. He believes that the US housing market is built on a bubble that will burst within the next few years. Autonomy within the company allows Burry to do largely as he pleases, so Burry proceeds to bet against the housing market with the banks, who are more than happy to accept his proposal for something that has never happened in American history. The banks believe that Burry is a crackpot and therefore are confident in that they will win the deal. Jared Vennett with Deutschebank gets wind of what Burry is doing and, as an investor believes he too can cash in on Burry's beliefs. An errant telephone call to FrontPoint Partners gets this information into the hands of Mark Baum, an idealist who is fed up with the corruption in the financial industry. Baum and his associates, who work at an arms length under Morgan Stanley, decide to join forces with Vennett despite not totally trusting him. In addition to Burry's information, they further believe that most of the mortgages are overrated by the bond agencies, with the banks collating all the sub-prime mortgages under AAA packages. Charlie Geller and Jamie Shipley, who are minor players in a $30 million start-up garage company called Brownfield, get a hold of Vennett's prospectus on the matter. Wanting in on the action but not having the official clout to play, they decide to call an old "friend", retired investment banker Ben Rickert, to help out. All three of these groups work on the premise that the banks are stupid and don't know what's going on, while for them to win, the general economy has to lose, which means the suffering of the general investor who trusts the financial institutions. That latter aspect may not sit well with Baum. Some of these assumptions may be incorrect and may be far more manipulative than they could have ever imagined, which in turn may throw curves into the process.—HuggoBased on the book by Michael Lewis (writer of Moneyball, Liar's Poker and Flash Boys, among others), the true story of a handful of investors who bet against the US mortgage market in 2006-7. Through their own research they discovered that the US mortgage backed securities market was a bubble about to burst, and they invested accordingly. What they didn't initially know was how structurally flawed the MBS system was, the level of corruption in the market...and the impact on the average person when the bubble burst.—grantssIn 2008, Wall Street guru Michael Burry realizes that a number of subprime home loans are in danger of defaulting. Burry bets against the housing market by throwing more than $1 billion of his investors' money into credit default swaps. His actions attract the attention of banker Jared Vennett, hedge-fund specialist Mark Baum and other greedy opportunists. Together, these men make a fortune by taking full advantage of the impending economic collapse in America.—Jwelch5742Sensing the imminent danger of a financial crisis based on inconspicuous warning signs in the mortgage-backed real estate market, back in 2008, a motley crew of bold, yet shrewd and skilful investors managed to reap immense profits just by betting against the housing market. Who could have predicted that a real-estate bubble of a such a magnitude was about to burst, and above all, what could be the devastating aftermath in a crumbling economy that left practically millions unemployed and homeless?—Nick Riganas2 moreAll