A stripper flirts in front of Mark, the founder of a top fund, while answering his questions about mortgages. When filling out her loan form, she listed her occupation as a therapist, and she owns five houses. Mark was shocked by the randomness of bank lending and the huge risks lurking in this stripper if he could not repay the loan on time, so he made up his mind to follow Jared's advice and short real estate subprime CDOs.

This is a rather ironic scene in the big airdrop, and it also proves how the layered packaging of Wall Street at the top is a corrupt reality at the bottom. The foundation of a building is constructed from loans with low credit ratings such as B, BB, and BBB, while the top layer is high-quality loans with AAA credit ratings. Once the loan cut-off rate increases, the foundation of this building will collapse first, and the entire building will also collapse. It will overturn.

"The Big Short" is definitely a brain-burning financial film. Three groups of people all discovered the loopholes in real estate credit. Some acted decisively, such as Mike Barry; others were hesitant and wanted to Do detailed research, like Mark; some accidentally discover Jared's plan and ask expert Ben Hockett to help judge and help them get the opportunity to enter the market, such as Charlie and Jimmy.

It is a very challenging task to explain the subprime mortgage crisis in a simple way. The visualization of this task was done by Desjardins in the film. He asked his assistant to build a The real estate credit model, of course, is not rigorous and is not very realistic, but the problematic part of real estate credit it embodies is very convincing. Of course, the cornerstones of real estate credit are not entirely B, BB, or BBB, but the problematic parts are all these types of credit. The biscuitization and desertification of these problematic loans can lead to the foundation sinking or the bottom layer collapsing. This progress leads to If there is a problem with one layer of high-level credit, then the entire real estate credit will collapse.

Who would not repay the loan? This issue was also raised in the film, but it was ignored by people in the financial system as common sense, because most people repay their loans on time, only a very small number of people will not be able to repay their loans, and it is considered by the financial circle to be in danger. It is even optimistically believed that as long as more than 80% is controllable, the mortgage market will be very stable. Shorting the mortgage market is simply a joke and extremely stupid behavior in the eyes of industry insiders in banks and investment banks. So when Mike Barry went to Goldman Sachs to bet that the mortgage market would collapse, he was considered to be giving money to banks and investment banks.

However, according to more precise calculations, as long as the mortgage default rate reaches 8%, the mortgage market will collapse, and this is a geometrically derived variable. The development process was full of twists and turns, but eventually the mortgage market began to collapse. Although it is worth celebrating and rejoicing if the bet is right, the crisis will bring about the collapse of many companies, the displacement of millions of people, and will trigger the panic of globalization, which will seriously affect European countries such as Iceland, Greece, and Spain.

The subprime mortgage crisis is like the elephant in the room, so big that everyone can see it, but they all turn a blind eye and achieve collusive silence. Moreover, rating companies such as Standard & Poor's and Moody's, in order to attract customers and their own personal interests, violate objective facts and give false ratings, causing many AAA assets to be overvalued, making the entire mortgage market full of junk and difficult to identify.

Therefore, we must always be wary of the profit-seeking nature of capital galloping unbridled like a wild horse. Calm down, calm down again, look at the fundamentals, and return to common sense to make unique and correct judgments.