Thread 214220030

>>214220030 (OP)
>Sir, I'm not sure that I would put it that way, but let me clarify using your analogy: What this model shows, is a hired gun, so to speak, not flying so good. If we were to shoot a man before throwing him out of a plane, as you put it, then this model wouldn't be even close to that scenario, it would be considerably worse.

>explain it to me like I know nothing about this business
Honestly sounds like something a CEO would say

>>214220030 (OP)
>>214220499
>pretend I'm a fucking retard who only got this job by graduating oxford and befriending the son of bank of america's ceo and has spent my entire career playing golf and taking credit for other people's work
Doesn't sound quite so natural eh?

Is this the thread?

>>214220030 (OP)
I've watched this clip more than fifty times. Never cared about actually watching the movie.

>>214220722
It's a good movie, really. But I've watched this scene a couple dozen times and seen the whole movie twice.

It was le rich WHITE bankers that caused the 2008 recession, and get this, they are all just bumbling idiots who got to their positions because of le white privilege

smoke it all. today.

>>214220030 (OP)
>As the CEO and founder of a large Wall Street hedge fund I'd like you to explain the basics of this 20+page package full of charts/numbers/analysis/jargon that I already read though and have an opinion on, Just to make sure that the we are on the same page and everyone understands and is aligned when I give the orders to nuke our customer base so that we can live to fight another day.

>>214220030 (OP)
>>214220631
The whole woodpile's getting down, you in?

>>214220809
Bingo. This guy gets it. Never trust Hollywood. Also, you left out that all the guilty parties are Aryan according to this film.

>>214220030 (OP)
Shockingly realistic to be honest.

>>214220030 (OP)
Congratulations. You have missed the entire point of the scene. They all already knew what was happening. What he needed to know is how a junior member of staff also found out. To him, if someone from the rank and file could figure it out in his own company, then somebody from a rival firm could. He implicitly explains this by prioritising being "first".

Tell me, why does he wear the most boring, plain button down collar shirt when he's the biggest dick in the room?

>>214223948
It is because he is the biggest dick in the room, and is confident in that, which means he does not have to be flashy to either standout or feed his ego. It being understated wraps around into being a power play.

>>214220631
Simon says, sell it all

>>214223948
Have you seen what tech company CEOs wear, some of the very richest people in the world?

>>214223896
He knew

>>214223948
what do you want him to wear? its an office setting afterall

>>214224251
Tech CEOs wear that shit because they are all nerdy children whose skills happened to be incredibly value at a very specific point in human history. They don't think about what to wear.

>>214220030 (OP)
I still don't get what the fuck are they saying in that scene, I've read multiple explanations from anons and even did my own research and still don't understand it. if you're thinking about trying to explain it to me just don't bother unless it's a really really detailed effort post

>>214223896
>>214225950
Not only did he know, but he also caused it.

>>214221332
>CEO
>reading 20 pages

>>214226223
>ceo
>capable of reading

>>214226223
>ceo
>can read

Bro where does Hollywood get these crazy far out ideas

>>214220812
blazed and ganjapilled

>>214226133
Analyst: we have investments that are going bad and could bankrupt the entire company.
CEO: so it’s really shitty?
Analyst: it’s worse than shitty if it keeps going
CEO: I think it will keep getting worse so we need to move fast. How fast can we sell bad investments?
Spacey: we can’t do it, it will be too expensive
CEO: I know that, we have no other option
Spacey: who’s gonna buy shit investments?
CEO: out regular customers, lie and tell them it’s a good investment at a cheap price
Spacey: but if we fuck them over they won’t want to be customers anymore
CEO: if we don’t fuck them over then we’re fucked and we don’t have customers anyway.

>>214220030 (OP)
...I need to return some videotapes.

>>214220812
...is that even possible Sam?

>>214220030 (OP)
Nope, he wants the analyst to explain the problem to the board so he can come in and pitch his solution. He sure as shit knows the problem they're in, he caused it

SAM, GET ON THE LINE

>>214220030 (OP)
wasn't it more of "you tell me what you think you've discovered"

don't worry I got margrot robbie on the line to do just that

>>214228421
Because the junior guy had the temerity to bring this situation all the way to the top while everyone else was either in the dark or knowingly hoped the gravy train would keep rolling.

>>214220030 (OP)
You laugh, but imagine the current Disney executive meetings.
>so we need to expand our market into the young male demographic
>Explain to me why we should do this by putting all our assets in this sector under control of aggressive man hating lesbians

>>214220809
This. Though wouldn't it be weird if the scene instead featured a Jewish man laughing and explaining to his executives that they can defraud the system openly and either Bush or Obama will force the peasants to pick up the tab.

>First black woman to sit on the Federal Reserve Board of Governors
>Commits mortgage fraud

>>214220030 (OP)
watched this movie 3 times and still have no idea what's actually happening in it

>>214226133
>investment bank buys mortgages
>they then bundle a bunch of them together and sell them off to someone else for big profits
>bundling them takes several months so there's a gap between when they buy them and when they're able to sell them
>if the value of the mortgages they're holding goes down during this time they'll have to eat the loss
>this is not normally seen as a problem because mortgages are very low-risk assets
>mortgages suddenly start going down in value due to rising defaults and declining housing prices

Here's the part that Margin Call gets into that most other documentaries/movies about the GFC don't touch on:
>because mortgages are seen as so low risk and they're only holding them for a short time, the company takes out massive loans, 10x the value of the company, to buy as many of them as possible ('leverage')
>this means that if the price decline is just 10% they'll be immediately bankrupted (literally a 'margin call')
>Jeremy's Iron decides to avoid that risk by exiting the mortgage business immediately through dumping everything they're holding onto other banks the next morning
>This will cause the collapse of the mortgage market, which will ruin most of the other banks on Wall Street since they're all in the same position

>>214228805
Because it obfuscates the truth
Movie:
>oh my, we were greedy and missed the fact that we were selling useless junk to consumers and now we will have to deliberately sell useless junk to consumers to stop from going out of business
Reality:
>Lets sell useless junk to consumers, go out of business and then have our bribed and controlled government cover our losses with chuds tax money.

Think of it like a car lot. The movie wants you to believe the used car salesman was lazy and didn't realise he was selling shit cars. The reality was they knew all along they were junk, but also knew when they went out of business, all their debt would be covered by the government raising taxes.

Too Big to Fail covered the crash a little better but it wasn't as entertaining or memorable. Watching James Woods as the Lehman CEO fuck up everything he touched was a highlight though.

Other movies with the same comfy, quiet midnight feel?

>>214228962
Been a while since I've seen it but I'm pretty sure there's a running subplot where Tucci and Spacey complain that they told Demi Moore about the risk of this a year ago and she refused to do anything about it, only for it to be revealed later that she told Jeremy Irons about it and he vetoed taking any action because the money was too good.

>>214229123
Demi is such a non-character in this movie, not to mention her pajeet assistant.

>>214229123
You're right. Simon Baker and Demi Moore are the "bad guys". They have that argument in the elevator about who will take the fall for it and Baker says something like "you knew it was fraudulent, but you can't prove I knew". Or something to that effect.

>>214229143
the point of her character was that the top brass definitely knew what they were doing was fraudulent, but they didn't care enough because the profit was too good

>>214220030 (OP)
Ovaltine. You ever have that stuff? The jar is round, the mug is round. They should just call it Roundtine.

>>214223896
>They all already knew what was happening
Then why the fuck would they wait for the last moment to dump the bag? If they knew they would have done it months ago

This was not as stupid as Kevin Spacey's character having a crisis of conscience at selling all their junk. In real life no banker would care.

>>214230423
Or Brad Pitt having a tantrum over the two young guys being happy over making millions. Some actors sign on to these movies so they get to be the moral compass in a cast of crooks

>>214224251
they wear $50,000 sneakers for some reason

>>214228774
you can prove this?

>>214230455
big short had a lot of other problems too, I really dislike Adam Mckay and his style. Though the part of the movie where they go on the mission to Florida is very well done.

>>214230381
Milk every penny they can

>>214230381
Because, as the big short alludes to, the guys at the top knew they would get a bail out.

>>214230596
>>214230615
They would have gotten out of the position and sold that shit off slow over the months and saved the firm. They didnt know shit

>>214226509
it's your good good to blaze. they can slow you down but they can't stop you from getting high as fuck

>>214228774
No surprises there

>>214220475
for you

>>214230381
> last moment to dump the bag
Maximum amount of profit, duh.

>>214222006
>>214230713
>>214231322

yeah bro the big short is the babby finance movie for normie
you have to watch margin call for the real iq complex stuff

>Kevin Spacey is a wall street banker
>but we like Kevin Spacey, he can't be a bad guy, so he's a wall street banker...but one of the good ones!

>>214231322
I liked the bit in the big short when the autist guy says to his partners
>I'm not wrong, I'm just early
and the partner says that's the same fucking thing

So why exactly is gambling with mortgages (and housing in general) even allowed, and why haven't we dragged all those wall street """people""" out in the streets to hang them from the next tree before smashing all stock markets?

>>214232531
It was illegal from the 1930s to the 1990s. Then the deregulators deregulated.

>>214232531
Something something money

Jeremy Irons stole the entire movie with one scene. Haven't seen an acting mog that hard since Michelle Williams in Manchester by the Sea

I listen to a lot of earnings calls so hear a lot of CEOs talking and the whole disarming "talk about it in simple terms" spiel is totally right. And actually it works the other way around even more. For example there's a high-level discussion around some pharma drug, and the CEO of the pharma company will immediately frame it in a way your pet labrador would be able to understand. The power level remains at once hidden and very obvious.

>>214230381
Because you can’t subtly sell off your entire portfolio.

>>214220030 (OP)
Speaking of which, how the fuck are brokers even existing still? Are they just used by high end clients?

>>214232531
In the long run, all this trading around mortgages, stocks, bonds, and whatever else creates liquidity and this liquidity leads to more people/funds owning government debt (as somewhere to park cash) and this makes money cheaper to borrow. People like borrowing money. Not just wall street people but regular people too. Everyone's greedy. Traders are greedy and the people pre-2008 who were taking out mortgages they couldn't afford are greedy too. That's why it's tolerated. Occasionally it all blows up.

>>214232531
because banks know they're big enough the government will be FORCED to save their asses. that lets them get away with basically anything on a big enough scale and encourages other players to make risky moves.

>>214220030 (OP)
>Wall Street
remember when we actually came close to doing something about that shit and then """suddenly""" identity politics were forced into the conversation to derail it?

>>214230423
I was going to disagree and say he maybe cared about the traders who he had nurtured and mentored that he had to tell to destroy their own future careers for Jeremy Irons dump-everything-in-a-day scheme. Then I remembered half his fucking floor got shitcanned at the start of the movie and all he cared about was his fucking dog.

>>214233451
>>214232531
Just remember that every time there’s a huge financial scandal, the exact methods were illegal during the Cold War. The logic of deregulation is always seated in “but it would be illogical/suicidal to do such a thing so despite the massive profit incentive people would do the right thing,” while hand rubbing intensifies

>>214233528
it's especially impressive when you consider that the entire cats is fantastic, yet, he manages to mog them so hard it hurts

>>214220030 (OP)
That's more realistic than you can imagine. I once had to deal with "a head of technology" who had one singular degree in fucking physiotherapy and didn't know what an Ethernet cable is

>>214230511
she will prove it herself in the discovery process where she has to give all her documents to the White House lawyers

>>214233528
I like his live performance of be prepared. It was amazing, surprised it has such low views.