The big short describes several key people who became rich through betting against the housing market of the US during the 2007-2008 financial crisis.
Michael Burry, a Wall Street guru notices that the subprime home loans are in incredible danger of defaulting. In other words the mortgages which these home owners took could not be afforded and they would not be able to pay for it. Burry tries to explain to his investors that. The homeowners will default causing the US housing market to plummet but considering how big of a gamble it is the investors at Burry's firm completely ignore him. Burry eventually goes to invest over a billion dollars of his investors money into credit default swaps. Burry's actions eventually grab the attention of a banker by the name of Jared Vennett, a hedge-fund specialist, Mark Baum. And a few other opportunist who find out about this astonishing news that people on Wall Street choose to ignore. As the plot unfolds it becomes apparent that something about the subprime loans aren't right. And that is because they are not. They are comprised of other loans and repackaged but in reality they are worthless. As the value of these worthless subprime loans increase, Burry, Baum, and Vennett begin to wonder how that is happening. They find out that these rating for the loans are just being given by the companies that have to rate these loans. As the film comes to a close, as Michael Burry foreshadowed the housing market collapsed. Leaving millions homeless and an economy in ruins.
Michael Burry, a Wall Street guru notices that the subprime home loans are in incredible danger of defaulting. In other words the mortgages which these home owners took could not be afforded and they would not be able to pay for it. Burry tries to explain to his investors that. The homeowners will default causing the US housing market to plummet but considering how big of a gamble it is the investors at Burry's firm completely ignore him. Burry eventually goes to invest over a billion dollars of his investors money into credit default swaps. Burry's actions eventually grab the attention of a banker by the name of Jared Vennett, a hedge-fund specialist, Mark Baum. And a few other opportunist who find out about this astonishing news that people on Wall Street choose to ignore. As the plot unfolds it becomes apparent that something about the subprime loans aren't right. And that is because they are not. They are comprised of other loans and repackaged but in reality they are worthless. As the value of these worthless subprime loans increase, Burry, Baum, and Vennett begin to wonder how that is happening. They find out that these rating for the loans are just being given by the companies that have to rate these loans. As the film comes to a close, as Michael Burry foreshadowed the housing market collapsed. Leaving millions homeless and an economy in ruins.