The film "The Big Short" is a film that shows three separate but parallel stories that are loosely linked to each other. Each story is about a group of people and their actions that led to the real estate market crash in 2007 and 2008. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay In one case, actor Christian Bale plays Michael Burry, an eccentric hedge fund manager. He finds that the real estate market in the United States is extremely unstable due to high-risk subprime loans. Burry expects the market to collapse as interest rates rise from adjustable rate mortgages, he floats the idea of ​​creating a credit default swap, which would allow him to bet against market-based mortgage-backed securities for profit. Burry's long-term bet amounted to more than $1 billion and was easily accepted by major commercial and investment banks. This bet required large monthly payments which began to anger his clients and they expressed the fact that they thought Burry was wasting capital. They pushed him to reverse and sell, but Burry was tenacious and extremely confident in his decisions. Subsequently, due to the enormous pressure, Burry chooses to limit withdrawals, which shocks investors. Eventually the market collapses. Burry's risky decision paid off and the value of his fund increased by 489% with an overall profit of more than $2.69 billion. of the first to actually understand Burry's investigation. After realizing that Burry is on to something and right, he decides to enter the market as well. This earns him a commission on selling the swaps to companies who then profit when the underlying bonds collapse. Then, a mistaken phone call leads to Frontpoint Partners hedge fund manager Mark Baum. Baum is eager to buy swaps from Vennet because of its low regard for American business models and banking ethics in general. Vennett explains how the market will eventually collapse due to the packaging of subprime loans into AAA-rated collateralized debt obligations. When the Frontpoint team decides to conduct a study in South Florida, they discover that mortgage brokers actually profit by selling their mortgages to Wall Street banks. That's because Wall Street banks pay higher margins for riskier mortgages, which creates a bubble, which then pushes them to buy swaps from Vennett. In early 2007, as loans slowly begin to default, prices of collateralized debt obligations begin to rise somewhat, and rating agencies refuse to downgrade the bonds' ratings. Baum notes conflicts of interest and fraud among credit rating agencies. Baum realizes that the fraud will completely collapse the global economy and is horrified. He then decides to buy as much as possible, profiting from the banks, and waits until the last moment to sell. In the end, Baum's fund makes a profit of $1 billion, but the banks do not accept the blame for this economic crisis. The final plot of this film is about two young investors, Charlie Geller and Jamie Shipley, looking for low-cost insurance that has great potential returns. . Below the capital margin for an ISDA master agreement it is necessary to enter into transactions such as those of Burry and Baum. Geller and Jamie enlist the assistance of retired securities trader Ben Rickert. When the value of bonds and CDOs increases.