As time goes by, while waiting for the market to collapse, he loses a lot of money, and his investors become impatient. He threw more than 1 billion dollars into CDS, which catches the attention of other stockbrokers, as well as confusion and fear in his investors. Thus, he created a credit default swap (CDS), which is a short-selling investment strategy, and allowed him to bet against the United States mortgage market for profit. No one selling them seems to understand that concept cause they too busy making money and believed that the market is uncrashable.

The main reason for this is because they based on high-risk subprime loans, which provide fewer and fewer returns. Since early on, even though no one trusted him, he recognized and believed that the housing market was unstable. In the film, he is a hedge fund managing director with socially inept. This paper will look at some of these individuals and how they contributed to the worst financial meltdown in history.įrom the very beginning of the movie, the first character that discovered the potential crash of the financial market is Michael Burry, played by Christian Bale. These characters knew that the market crash was imminent, decided to use this knowledge to profit themselves, and short bet against the “always stable’ mortgage market. Within the film, there are three different stories, which all linked together because of the housing bubble. Not only that, but the movie also focuses on some investors who foresee in advance the mortgage securities market will meltdown and crash. It helps the world to understand the economic collapse on Wall Street in New York, to the meltdown of the financial market, and its impact globally. Still, the director excellently added some pop-culture explanations of finance and humor between characters in the film to grab the viewer’s attention. The movie may be too dry for people without a finance background.

The film tells the story that led up to the 2007-2008 financial crisis and the housing bubbles. The Big Short is a movie based on a non-fiction book “The Big Short: Inside the Doomsday Machine” by Michael Lewis in 2010.

The big short characters