About ten years ago some guys realized that the housing boom was about to go bust. Even worse, it was gonna take a bunch of big Wall Street banks down with it. So they figured out how to make a shitload of money off the destruction of the US economy.
And those are the good guys in the movie The Big Short.
The movie is a dramatization of what really happened. It’s a damn good movie. It explains the basics of what happened in ways that you don’t have to be a financial expert to understand.
You may recall that about a month and a half before the election in 2008 that Lehman Brothers declared bankruptcy, triggering a crisis that led to a federal bailout and the election of Barack Obama.
What you may not know is that the crisis started over a year earlier. The reason that you may not know this is because nobody was talking about it. Both Hillary and Obama were taking in millions of dollars from Wall Street in campaign donations at the same time that everything was falling apart, but for some reason the subject never came up during the campaign.
Although the crash seemed to catch everyone by surprise, the evidence that it was coming was in plain view for years before it happened. It wasn’t just one company involved.
When it was all over only one guy went to jail. Six trillion dollars went “poof” and the world economy was wrecked, but the guys who caused it not only didn’t end up in prison, they got fat bonuses. Some of them even got jobs in the Obama administration.
Watch the movie.