Sharing Good Amusement (SGA) II( in my eyes)

电影经济学相关观后感《The Big Shot》by Jenny Guan

《The Big Shot》shows people what the real American subprime mortgage crisis was since the people and events were based on the 2007-2008 global subprime mortgage crisis and foam economy. This financial crisis was triggered by a large decline in home prices after the collapse of a housing bubble. After watching this wonderful movie, I fulling interested in this mortgage crisis as well as learned an amount of academic terms of economy.

Margot Robbie in the movie explained that mortgage bonds were amazingly profitable for the big banks, they made billions and billions on their two percent fee and they got for selling each of these bonds. But then they started running out of mortgages to put in them. After all, the buyers of house and car are certain. So the banks started filling these bonds with riskier and riskier mortgages which are called subprime. “Short” the bonds is like to bet against. Some people, like Dr.Burry first found and used this way to “Short” the bonds, but the bonds only fail if million of American don’t pay their montages which almost never happen in the U.S.A.

In addition, risk assessment and guarantee, like AAA was the most frequency use in this movie which inspired me to figure it out ——AAA is the lowest risk, then AA, then a, BBB, BB, B.

The important central term in this movie was CDO(collateralize debt obligation) which guaranteed debt warrants. To put it bluntly, it is to collect some of the most junk (B-rated) subprime mortgage bonds that are easy to default and no one wants to buy, repackage them into a new security, and re rate and price them. Also, Dr. Richard Thaler, the father of economics, and Selena Gomez explained the synthetic CDO in the movie. 

please let me know if you have any thought about this movie or advice for this article🤩