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  2. The Big Short tells the story of the lead-up to the 2007-2008 financial crisis. It focuses in particular on a few exceptional people who were able to predict the crisis in advance and thus profit from it.

    • What Is The Big Short?
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    The Big Short is a 2015 Oscar-winning film adaptation of author Michael Lewis’s best-selling book of the same name. The movie, directed by Adam McKay, focuses on the lives of several American financial professionals who predicted and profited from the build-up and subsequent collapse of the housingbubble in 2007 and 2008. Published in 2010, The Big...

    The Big Short was not the first film adaptation of a successful non-fiction book covering the financial crisis. In 2011, HBO adapted Andrew Ross Sorkin’s crisis tell-all Too Big To Fail, which also had a star-studded cast. That story centered more on the few weeks leading up to the collapse of Lehman Brothers and the government's decision to bail o...

    Financial terminology and the chronology of the financial crisis are highly difficult for a lay audience to comprehend in a two-hour movie.The Big Short employs vivid, colloquial, and even humorous ways to illustrate and define the complex financial instruments and tools, from collateralized debt obligations (CDOs) and tranches to credit-default sw...

    Is The Big Short Based on a True Story?

    The Big Short,based on a non-fiction book by Michael Lewis, chronicles the real lives and actions of several financial-industry professionals in the mid-2000s—against the backdrop of the rise and then dramatic collapse of the real estate market. The film did change the names and other identifying details of some characters.

    What Was the Big Short in the Movie?

    The titular "big short" in The Big Shortrefers to the trading/investment practice of shorting, or selling short. When you short something—usually a financial security, like a stock—it means you borrow it and sell it on the open market, with the aim of buying it back later at a lower price and pocketing the difference as a profit. Traders and investors sell short when they think that a security will decline in value. It's a bet that prices will fall. There are actually several big shorts in th...

    What Caused the 2008 Financial Crisis?

    The financial crisis of 2007-2008 was years in the making, and due to a complex interweaving of causes. Its seeds were sown early in the decade, with cheap credit and lax lending standards fueled a housing bubble—an upward spiral in home prices as borrowers took advantage of low mortgage rates. Many of these loans were subprime—that is, the borrowers really couldn't afford them, putting the loans at high risk of default. Lenders then sold those loans on to Wall Street investment banks, which...

    The Big Short received several Academy Award nominations, including one for "Best Picture," and won for "Best Adapted Screenplay." Some critics, including Nobel Memorial Prize in Economics Laureate Paul Krugman, have said that the film fails to acknowledge that several people, outside of the characters profiled in the movie, also flagged the issues...

  3. The Big Short tells a tale of chicanery and foolishness at the highest levels of American finance, and of the few clever and persistent investors who outsmart the crooked banks but are unable to stop the headlong rush toward disaster.

  4. Get all the key plot points of Michael Lewis's The Big Short on one page. From the creators of SparkNotes.

  5. Jun 18, 2024 · Summary. The Big Short provides a humorous and accessible way of understanding complex financial concepts related to the 2008 financial crisis. The film's ending contrasts the success of its main characters with the impact of the crash on real people, serving as a warning for the future.

  6. In 2008, a group of savvy financiers sensed the looming threat of a subprime mortgage crisis concealed in the subtle warning signs of the mortgage-backed real estate market. Despite the risk, these investors took a bold step and bet against the housing market, reaping immense profits.

  7. Based on a book by Michael Lewis, “The Big Short” is about how several traders and hedge fund managers made fortunes because they saw that the housing market’s decline would cause a collapse of bonds contrived from sub-prime mortgages. The terminology is both dry and dizzying, the machinations incredibly convoluted.

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