Based on true events.
It ain't what you don't know that gets you into trouble.
It's what you know for sure that just ain't so.
Mark Twain
In the late 70s, it was not for banker who was going to make money,
It was a fucking snooze.
Full of losers, as insurance salesmen or accounting
If the bank was bored, the sale of securities was comatose.
We all know what are securities
Give them to his ignorant son when he turns 15
maybe when he's 30 years he make a $ 100
Drier
This until Lewis Ranieri of Salomon Brothers appears ...
You may not know who he is,
but he changed your life, more than Michael Jordan, Ipod and youtube together
Gentlemen, let's make money, we make money, you say?
You know, Lewis did not know yet,
but he had changed banking forever with a simple idea You know, Lewis did not know yet,
but he had changed banking forever with a simple idea
The mortgage backed securities or private label MBS
You got your average person mortgage.
fixed-interest 30 years, borin, small pay, right ?
but...
when we have thousands of that bond together
suddenly the yield rises up but the risk is still small
because they are mortgages, and who the hell who do not pay
What exactly is the credit ranking of these bonds?
This bond, gentlemen, is rated AAA
This is exactly the the Michigan State pension fund was looking for
buy 20 million
Come on, live a little
25 million
Money came raining down
and for the first time
the banker was the private club to strip club
Quickly stocks and savings had almost no importance
They were doing 50, 100, 200 billion in mortgage bonds
and dozens of other securities for year
America barely notice that its one industry became boring old banking
until one day, almost 30 years later in 2008
then all came crashing down
first financial crisis in the modern era
certainly the biggest financial disaster in decades in this country
and perhaps the end of a pyramid
In the end, the mortgage securities Lewis Ranieri
They have become an eyesore that collapsed the world economy
and none of the experts or leaders had no clue what was coming.
I am guessing most of you still do not know what happened
yet you got somebody to repeat you, you're not so dumb, come on!
Our financial institutions are strong
But there was someone who saw her coming
While all the world is having a big old party few outsides and weirdos
They saw what not was good
I do not, I'm not a freak, I'm pretty cool
We'll see you later
these strangers saw the giant lie in the heart of the economy.
and saw him doing what the rest of the suckers never thought to do
They looked
The Big Short
In the 30s
the market for houses collapsed nationwide
80%
half of all mortgage debt was falling
were very specific identifiers
extremely easy to recognize
for example
one of the marks was the rapid increase
the complexity of the evaluation and fraudulent know?
They were to rise
I've always been more comfortable alone
I believe it was because of my glass eye
I lost my eye on a child's disease
separated me of people
I knew they were going up
higher than
since the 30s
No, I did not know
I mean...
in 1933, the fourth year of the Great Depression
All social interactions are strange to me
to the person, even when I try to praise
always comes out wrong
It has a beautiful haircut, felo you?
Not me...
Sorry, please
My wife told me I should share more
It seems to me healthy
So, I get the job? I think I can help
Yeah, sure, go ...
You are
David
I think I'll look for a desk
The something you want to eat to do?
Can you tell me later, I can go back
He thought it was strange that when the technology bubble burst in 2001
and the housing market in San Jose technological capital of the world
up?
Weird
No, it's housing, is always stable, low risk
that is the idea
I want you to get me the 27 most sold bonds
So you want to know what are the most sold mortgage bonds
No, I know what mortgages that are in each of them
But these titles do not have thousands and thousands of mortgages?
Yeah
I'll get right on it
I am a nice guy all day, ask anyone
But as soon as my son is screwed up I yell to him as my father made me
and the words coming out of my mouth
Sorry, I'm late with no taxis
Listen to this
I go to a banker yesterday
It was supposed to convince him to invest in our fund
but instead
I start talking to him about overdraft penalties
and how your bank allows pass
10 or 12 checks before they say they are discovered
and this idiot makes billions sanding people like this
and I'm increasingly furious
and I ask him to his face
As night sleep can knowing this stealing workers
They know what he did? Exited.
He left without saying a word
What the fuck is this?
Who's fucked up in this situation? It's me?
Or is this idiot?
Let me hanging when it is that it is fucked up?
We've been over this several times
You can not come so late and hijack the session.
What do you mean, I do not kidnapped the meeting.
- Kidnapped this session? - Yeah.
- What are you doing? - Work with goods.
Good luck with that
Mark, I know you suffered a huge loss, like to talk about it?
I do not talk about it. Hang on.
I have to answer that, sorry.
I do not care, the business of this type is to rob people.
How long can you last? Bye.
95, 30 days late, 60 days late
They paid in time
over 30 days late ... 95 ... 90 ...
- It has been so all day - He does it almost every day
I have not passed me since hired me.
Michael like these?
I found something really interesting
Great, when you find something interesting started making money
that these actions talking about?
I'm not talking about actions, I want to short the real estate market.
Oh really? But the housing market is solid that not a rock.
Greenspan just said that bubbles are regional and that failures are rare.
Says
Greenspan is wrong.
I believe not wanna do this
but sometimes it seems to be disregarded and higher.
It is a fact, Greenspan is wrong ...
Capital Metro backed up four years ago when you were a doctor
with a cunning web page and heritage.
All were well, why do not you keep with you actions?
You know me, I look for value where this can be found
and the fact is that these titles
They are full of extremely risky subprime with variable rates
and when greater rates of these variables come into 2007
will begin to fail and fail over 50% the title is worthless
Calm down, we talk about this later
Do not treat me with false kindness, if it ...
Mortgage securities, subprime loans, tranches
It is too confusing, right?
I speak to feel dull
or stupid
It is supposed to be.
Wall Street loves use confusing terms
to think that only they can do what they do
or even better
to stop nagging
so here this Margot Robbie in a bubble bath to explain
Basically the titles of Lewis Ranieri were extremely profitable in the big bang
They made billions and billions selling at a 10% rate
But then eventually no longer have mortgages to bring in titles
after all there was no more people with good jobs to buy
then the banks start to fill these securities with subprime mortgages
so the machine can continue to roll
by the way, these risky mortgages are called subprime
then every time you hear subprime think of shit
Our friend Michael Burry found that these titles
that are supposed to be 65% AAA
They were actually full of shit
so now will make the short titles
which means betting against
right?
Now, stand on the Cock
It is only a matter of time before someone becomes aware of this investment
we must act now
How do you know that titles are worthless?
They are not full of thousands of mortgages pages?
I lias
- East? - Yeah.
Nobody reads them, only lawyers who make the read
I think they know or what they did
the real estate market is loaded these bad loans
It is a time bomb and I want to make them short
Through which instrument?
There are no contracts or insurance options for mortgage bond
the obligations are too stable
Lourance, that is what I'll do
I will make a bank ask me a
then I will buy
I do not want this kind of business
Money is not money, it is bad money
Hey, excuse me.
Let me ask
that company treats customers this shitty way and have success?
Ok, Goldeman
As a kid he studied at Yeshiva whatever
one day the rabbi tells his mother
Baum is a good guy and is an excellent student
So what is the problem?
It is the reason fur studying both.
It looks for inconsistencies in the word of God
Then found some?
Later Baum started his own fund in Wallstreer
He had a good nose to find bullshit.
and I was not afraid to say when it was shit.
then the tragedy happened to the market that made his whole black world
and he began to believe that the whole system was a lie
The therapist called you did it again
There were no taxis were supposed to do
- I am worried about you. - At least I was.
It seems that you have to correct all the evil in the world, so angry.
Ok, I'm a bad guy and I'm pissed
but it's a shit storm you have no idea what these people is doing
and all go as if they had a video of Enya
Are all to be eaten know? You know what care?
They worry about the football game or actor entered rehabilitation
I think you should try medication
No, we agree, this implies with my work
I hate Wall Street maybe you should leave it
- I love my job - You hate your job
- I love my job. - I am miserable.
I love my job
Mark, I'm sad every day after what happened
I know you feel the same but never you show
I know you were picking your brother.
Paul, where did you go paul
Every day I think you're going to talk about it but never doing
At least you can think of the idea to make a change?
Okay, I'll consider, but I'm honestly well
No, no, this is my taxi
I'll call you later
I want to buy swaps on mortgage bonds
swap of credit failure to pay if the bond fails
- Want to bet against the housing market? - Yeah
Because?
These obligations only fail if millions of Americans fail to pay mortgages
This has never happened in history
Excuse me but it seems a crazy investment
Based on market sentiment, banks and popular culture
Yes, it's a crazy investment, but they are all wrong
This is Wall Street wants to give us money if we accept
The My only concern is that when the fail obligations
I want to make sure that I receive in the event of insolvency
Sorry, are you kidding, this betting against the housing market
and I am afraid that we can not pay you?
Yes, correct.
Dr. Burry we can create a payment structure as debt
who will pay if the fail obligations but ...
also affects its payment obligations if the rise
You have to pay the monthly interests
Is that acceptable Dr. Burry?
Yeah
I'm interested in six mortgage securities
Dr. Barry this seems to be fine.
We are prepared to sell 5 million in credit default swap.
We can do 100 million?
Undoubtedly, we can make 100 million
We will contact to send documentation
Mugs like these can take one for my son?
Yes, yes, you can take two.
It may be 200 million?
- Yes, but are you sure? - Absolutely.
These obligations, I bet against them.
Randal Hey what's up it will no longer saw three months.
Sold 200 million in mortgage credit default swap
A California fund manager
In a crazy? New way to make money.
I did not know who had swaps for mortgages.
There are now.
We did it for him
You should not be taking medication or something.
Heard of business that Randal did with a fund manager?
Randal? Bullshit, should be a fucking business
No, I'm serious.
I told you I would see later
Unfortunately it was a place like this, I would never be here with these idiots.
I have friends in style.
Apparently he wanted 200 million in credit default swaps.
Randal made the sale you believe it?
Someone made short 200 million in mortgage bonds?
It was only with Deutsche, what they say is that it was done across the side
The total?
1.3 billion
What? That's almost as much liquidity
This is highly distressing
That's not all our liquidity
And I'm not sure that realizes this exchange
This is a certainty
I consider myself as a mentor for you
our firm is not comfortable with this investment, is that clear?
I have all the autonomy that has to do with investment strategy
can read our agreement
I do not espetes with the agreement in the face Michael
We had reached an agreement that goest not act like a madman
This is not crazy, it's very logical
So we pay premiuns the swaps until the mortgages fail?
In other words we lose millions as what ever happened to happen?
Correct
- Hello - You got me, had something personal afternoon.
- Makes money for us I'm glad. - OK.
I heard that these hopes?
We are hoping to be hope.
- We are seeing if ... - Sounds exciting.
This high on my scrotum, I do a scan
apparently have a huge ball called the epididymis
Which is something that goes back ah Ball
and it is like a bag that appears below
I have a epididymis
Do you have pictures?
Almost like other testicle below
Listen to this, Cynthia wants me to give up
Open a B & B in Vermont
Sounds beautifully loved seeing Mark Baum in motel
Still owe me an idiot meal
Mark refuses to kiss the ring of people with the checkbook
then he had to create your background beneath Morgan Stanley
Their small team demonstrates its lack confidence in the system
She says that my work is making me unhappy
But you're happy when these unfortunate
I'm happy when I'm unhappy
Vinnie Daniel
Can you make a muffin?
the man of Marks numbers
You know washing or making the bed?
Vinnie lost his father with a violent crime as a child
As Mark he does not talk about it
I do not talk about it.
Cynthia is not playing, you can even move to Vermont
she made me wear a suit once
Porter Colins former Olympic player who went to Baum
Baum worked with a firm and did not see why not heard
the kind with good ideas
I think I have the wrong number because there is another in the same document
Danny Moses and the optimist of the group and a distance from a dealer
That's the only reason I tolerate your optimism
Take longer exchanged with a call than with any other
It was a guy who spoke to short the real estate obligations
Halfway through the call noticed he wanted another phone number
because I wanted the 8th floor
he wanted to short the real estate obligations
This happens five times a day for a man entice the name
We must change our name
Hopes he wanted to do short? Who would bet against real estate?
- Where is the EBS - What is EBS
checks the subprime value back to sleep
The EBS this ... Wow, this below.
This down 3 points since last year
Strange had not heard anything about it
What was his name?
Jared Vennett
Sure, these lucky ones have found one of the largest Wall Street business
through an incorrect number
They should pay 10% to my stupid assistant
Jared Vennett of Deutsche Bank looks very weird
It looks like a sucker
Okay, hello, how are you?
Sit down
Ok sir Vennett of Deutsche Bank we have?
So how many people talked about this?
Some, there is a certain some interest
"No," "my boss sanded me", "no", "will walk"
Dai be talking us through a wrong number
There seems to be too much interest
Ok, many have called us just to laugh at us
Are you? that's what this is about?
It's not what this is, just what Mark is
Let's see what has
What is this? What is this smell
Cologne?
Do not.
Opportunity
No, money, smell me the money
Chris, lightning
This is typical of a mortgage bond,
the original were simple
Were thousands of AAA mortgages together guaranteed by the US government
Modern are different,
They are private and consist of tranches
A tranche is a French word meaning "a potion of something"
The highest AAA are paid first
the lower B are paid at the end receiving the first failure
Obviously buying these can make more money
but they are more risky, sometimes fail
Somewhere in time these B and BB spent a little risky to dog shit
Where is the waste?
Behind him
I'm talking about fucking background
No income verification
variable rates, dog shit
rankings are already below 4% and 8% arrive at
going, some of BBB also go to zero and this
these too close
It is an opportunity
So that to say that the 8% obligations fail and we are already at 4%?
Right
If 8 is Armageddon?
Yeah
How come no one speaks of it
That's right math?
Look at it, it's my quant
- Your what? - My quantitative.
My math specialist
Look at him
Notices something different about him?
- Look at his face - That's a bit racist
Look at the eyes, I give you a clue
His name is Yang
Won a national mathematics contest in China, he did not know English
Yes, I am sure about mathematics
Jung actually my name and know how to speak English
He likes to say it because it makes me look more authentic
and was second in math competition
So is offering us the opportunity to make short these blocks?
as?
With something called credit default swap
is like insurance you must, and if this goes live
can do 10: 1 or even 20: 1 and is already going to slowly puddle
10: 1, 20: 1? I do not believe
and no one is taking care, no one is taking care
because banks are entertained receiving obscene fees
Sell ​​to these obligations
But wait, you're the bank, works for the bank
I bet their margins are good and fat
Let us not speak of my banks
Good and fat, this shirt is pretty, do it for men?
- It's not the bank? - I work for the bank
I do not think as a bank
Big bank, small, I like to make money
Let me say this way
I am in front of a house on fire and I'm offering you insurance
How these obligations are so but what are legal?
Nobody knows what is there
No one knows what is the obligation I saw some who say they have 65% AAA
and I know that you are filled with 95% of subprime shit
Non performing below 5.50
sucks
Whatever surprise you?
When the mortgage is too risky to buy what you think you do?
guess
I do not know, tell me
We think we get them on the books? No
Just reembalamos with a lot of shit that did not sell
and placed it in a CDO
CDO collateralized debt obligations
What is this
When it is grabbed in an amount of B, BB, BBB unsold
and we put in a lot,
when the hill is high enough it is considered diversified
and the eyes of rating agencies give it a rating of 92, 93% AAA
Without even questioning
Say it again.
Divide of collateralized obligations
It is important to realize because it was what allowed
the real estate crisis became an economic disaster
Here is the celebrity chef Anthony Bourdain, to explain
OK, I'm a boss in a second afternoon to deal with a large restaurant menu.
I commit my fish to Friday
What are covered bonds that Michael made short
But some of the fresh fish sold not
I do not know why perhaps because someone had the intelligence of a dolphin
then what will I do?
then all the fish that are not sold that is of BBB bonds and junk
and accept the loss?
No way
I being a boss with moral and crafty
all obligations that I did not sell
I shove a fish stew
It is not old fish, is a new thing
the best part is that they are eating smoothly
This is a CDO
Then mortgage bonds are junk
CDO are dog shit rolled cat shit?
Yes it's right.
Institutions treat CDO's as if they were as solid as treasury bills
and will hit zero
You can not be right,
They were sold 500 million titles sold last year
Rating agencies, banks, government shit?
This to say that they are into this?
Yeah
My whole department is in it
They call me small dick
they call me mummy's boy
Zero, zero B, BB zero, zero BBB
and this happens.
What is this?
This is the real estate market
- Thank you - A to Jared
Shut your mouth bitch.
I do not like it
Is fooling us
he has a lot at stake and it's us put way
And if he's right
you want it to be right
Yes I want
Banks give us 35% interest in the credit card rate
they Sands us in student loans
of which we never managed to get away
then this type appears and tells
that these same banks have become greedy
if desleixaram on the market
and I can come to take profits with their stupidity?
Yes, fuck I want him to be right
How do not hate this guy?
It is what you have been saying not to trust
I can not hate, it's so transparent in their interest
until respect
Buy a car to him? No
That's right in relation to the mortgage market? Let's find out.
Are two very simple questions.
there is a housing bubble?
if there are how exposed the banks?
- Ok - Let's make this quick
because if he's right
all failed with a million and a fund will go into it
JPMorgan Chase
To say JPMorgan Chase
I have a good feeling
It's just a meeting, people have them all the time
People drink their coffee, they have a meeting
- Brownfield funds? - Yeah
- Hello Ted - Chris, I'm in Ted's office
- I'm Charlie Geller - I Jamie Shipley
We are so excited to go on will power trading platform.
Cool, I feel
OK
So Ted asked me to prepare the meeting,
but I could not find any your information
We moved now Boulder
We can see a document of your offerings?
Brownfield has its own money
It's our money
Can you tell me how much they generate?
Of course we are making 30 million at this time
but we started four years ago with 110,000
as you can see we had a phenomenal return
we have an ISDA agreement with JPMorgan so we can negotiate long-term
That's really cool
ISDA agreement: An agreement that allows an investor
He sits in the "table of the big boys"
and to make high-level negotiations
not available stupid amateurs
Trying to make a high-risk business without ISDA
It is like trying the Indy 500 with a mud
- That's cool - Thank you
But they are below the capital requirements for ISDA
For how much?
one billion four hundred and seventy million, so far
This makes us look bad for not knowing the right capital requirement?
Not great, but ...
continue with such profits and Call us further forward
- OK? - OK.
- Stay safe. - Thank you Chris.
Shit, who is marking a meeting for 4:50 pm?
No one returned the calls, until the Macoviak sent in sand.
Here are the prospects of other losers who have not passed the entrance hall
I think I can not go on
I am still new can still make something of my life
can you at least read better
- Gentlemen, I need to leave. - Yeah, yeah, we're going.
Look at this, this type
He says the real estate market is a giant bubble
Okay, this was not quite right, we find the bubble Jared Vennett
at the entrance of a bank that rejected us
the truth is that a friend spoke to Charlie about it
I read about it
this is crazy
say they have 10 return: 1 in credit default swaps
and the housing market is about to go to the pool
Jamie and Charlie armagadon the real estate business
It was music to your ears
They began with a garage business with 110,000 Jamie spared
Leading sailing boats ah by the east coast
Our business strategy was simple
People hate to think that bad things can happen
then end up underestimating the probability
their strategy was simple and bright
What did he say
Jamie and Charlie found markets that sold inexpensive options
on things they thought could never happen
then when they were wrong, they were wrong by little
but when they were right, they were right on large
in a few years become 110,000 by 30 million
so it was time to go to New York
and so far did not go well
and then it looks interesting
no bank will give us our ISDA
We are under water
these negotiations are totally out of reach
We have to connect to Ben
Ben Rickert was an early investor in Singapore
who left the game in disgust
it turns out he was a neighbor of Jamie when they were in Colorado
and met her walking their dogs
but Ben was somber
he not only thought that the whole system would fail
he thought that everyone was going to the bottom
Good salad
All these vegetables are fresh from my garden
You should start making your own garden
What has to do is remove soil chemical
using urine and ash to recover the soil
creates hydrate, seeds are the next currency
and not those Monsanto seeds
I'm talking about organic quality seeds
create a garden, live earth
Ben had enough experience in a major bank
Jamie and Charlie never had a bathroom of a bank in Manhattan
but Ben was out of the world of banking
he was very clear
let's look at the numbers and then maybe us to call Ben
clear that we see the numbers when you do not check the numbers?
Let's check the numbers even the background
I hate that this waste of time
go relax
ie development of real estate 25 minutes outside the city
Mark wants us to come check first
there are some Cuban restaurants on the way
I heard that the Cuban food is expended in Miami
Please do not grabbed when I'm miserable
makes me hate you
when you want to eat good food is to be grasped?
Hello?
- How much is this worth? - 20, 25 each.
What's up? What you want?
Hello, I'm doing a survey of mortgage owners
Who have more than 90 days late in payments
I am looking for a Harvey Ramsey
Want to talk to the dog my landlord?
Your landlord filled the mortgage with the dog's name?
I think so
wait, this clown is not to pay the mortgage?
because I've been paying rent
Yes, it is already overdue 90 days
Seriously? I'll have to go?
My son has now entered to school
Such as?
- My name is Ken. - Call you Ken?
Should talk to your landlord about it, I apologize but I have no more information
Have a nice day
See you Ken
It's gonna be okay?
I should call him, should call you
Not my fault, I have been paying
Hello
Mario Celest
The only thing that was brought to TV
weird
They not even cleared the bench
My God
It seems Chernobyl
100 homes can not afford to live here
This there at seven o'clock he will not the toilet?
I heard that had a breakdown
In fact he prefers send you an email
Hello Lawrence
We have no confidence
on your ability to identify macroeconomic trends
flew down here to tell me that? Because?
Everyone can see that there is a housing bubble
In fact no one can see a bubble
That's what makes it a bubble
That's a silly always there brands
mortgage fraud increased fivefold since 2000
and payments media is smooth
housing prices are falling
ie the value becomes deficit and not an asset
Then Mike Burry St. Joseph the guy who cuts hair at Supercuts
and not wear shoes
You know better than Alan Greenspan and Hank Paulson?
This talking to Mike Burry, but he knows
This is funny?
these being sarcastic with us Mike?
Lawrense I do not know to be sarcastic.
I can not be funny
I can not work people
so I can read numbers
How big is your position in Shorts
1.3 Billion
And premiuns?
About 80 or 90 million every year
it's hard, but I was the first to make this business
you will see that it will compensate
I have started early but I'm not mistaken
It's the same thing
It manages a fund of 555 million
in six years will it all to life
a bet
in the second quarter of 2007 is when the stir rates
and non-compliance will fly
Sayest thou
How much is readable to remove before it happens?
let's say the next two quarters if your investors to panic?
My god Mike
No one will leave it would be suicide
They are already down 17% this year but trust me
No one trusts you, nobody.
My investors know that
in 2007 the real estate position will change
and it was very clear
people will withdraw their money
How they might be are stupid?
if capital funds declining too then the swaps contracts are canceled
and the bank takes all the side
The contracts are canceled? The contracts are canceled?
Oh shit, oh son of a bitch.
Michael, give me my money.
Do you hear me? I want my money back.
Give me my fucking money.
His son ta bitch.
The market is a little slow right now
It seems that everyone said it was crazy
let's just calm down
I sold that house for 315 in the year it was built
two years later 480
then 585, maybe about 18 months ago
this couple bought the house for 650 last year
he sold her for it
Goodbye John
No
It is with a broken heart, but it sells.
Why is is selling?
He is the only one working at the time
I say they are motivated right?
The motivated enough for those who live in this neighborhood
This house here on the left, I would say that they would be motivated
A lot of people seem to be motivated.
It's just a little, just nerves.
So how do we get?
I have to talk to my wife.
This market will last.
In fact, I can talk to a financial broker?
Someone to recommend? Someone you like?
Yes, absolutely, I know one.
It's good that she likes me, I paid him a trip to Cabo
So Morgan Stanley this to recruit us?
No, the bank owns our background, but we are not part of it
us invested in investment companies
so we are trying to understand the real estate market of housing
How many loans do every month?
Approximately a 60
How many were at about four years ago?
10, maybe 15
Yes, I was a bartender now have a boat
How many of them have adjusted rates
Most of them
I'd say 90%
the bonds of these have soared to a few years back
Adjustable are our honey on bread
So some are rejected?
Seriously?
If they were rejected would not be doing my job well
Even without money?
My firm offers a ninja loan
No income, no job
Can I leave the portion of blank if you want income
the company does not care
these people just want homes they go with the flow
Good for you
Your companies do not check?
If you load a loan on Friday afternoon
The bank will conclude the loan on Monday lunchtime
The same thing.
They can wait a second?
I do not understand
Why are you confess?
They are not to confess
They are bragging
People idea what they are buying?
My focus is on immigrants
When they know they will have a home soon sign
They do not ask questions do not understand the fees
Idiots of lightning
Also speaks to immigrants?
Your credits are not bad enough for him.
I am a kind
I make 2000 a fixed-interest press
but it can make 10,000 a subprime adjustable
I'm not going to run a series 7 without stripers
No one has credit and are all full of money
I heard that someone said something.
Who?
- So strippers? Dancers? - Yes, naked, without top.
- Can you introduce us? - Yeah.
I am always adjustable hired.
I can hear not apologize
I have always adjustable'm hired, I need flexibility
He says the loan company what does?
I write therapist
- You can touch me. - Always?
Only the VIP.
He says he always makes adjustable.
You have more than one loan for a property?
Everyone has at least here
Sorry what?
Everyone has, at least here.
So the low-income 5%
Prices are level below right?
Yes.
Would you mind not move anymore? I paid the same.
Sorry, we are not alone.
Ok, if prices do not rise, will not be able to refinance.
And you will not pay what is payable upon expiration of the time.
Their fees can go up to 200, 300%
Jim says I can always refinance
Well, he is a liar
Indeed, in this specific case Jim probably is wrong
200%? In all my loans?
What do you mean by "all my loans?"
we are talking about two loans at a certain house?
I have five houses. And a condo.
There is a bubble
As you know?
Trust me, binds to Vennett
purchase 50 million in swaps in MBS
What we have carebolders BBB
Mark you sure?
Yes, it's time to debunk.
- Deny what? - All
Speak American angel background.
Okay, listen, I have one last question for you.
How the fuck are you?
Mark asked me to say this was?
I'm serious.
We bought the swaps, but only if you tell me how we're going to fuck.
I'm a fuck you, I'm kissing
I'm looking deep into your eyes while I make love to you
I am you to deliver the deal of the century on a plate
What shot this?
I am 20 million negative monthly
Employers have to try me pull the plug because they think I'm crazy
We do this business these problems are not so big
Sure, Swaps are a gloomy market
I say the price the price you want
When the day of payment
I will pluck your eyes and you'll make a fortune
The good news is that it will not matter because it will make a lot of money
give is that shooting party
They know what they derive it?
They get ice cream, with hot chocolate with banana and walnut
This time I'm with sprinkles
but if this move forward, we get the cherry.
But are left with the Sundae Vinnie.
Okay, I accept that, thanks.
So what you say? You want the light to the market?
Yes, we get 50 million, BBB.
Sharpen the pencil tract of paperwork.
Fuck you too.
Yes.
Oh my, so many numbers, I forget what he prefers.
- Must be this one. - I do not know if it's the first.
Experience.
- Ben Rickert - Hello is Jamie
Jamie, you know it's not supposed you use this line.
I told you, we will try # 2 of 14.
- Ben Rickert - Ben why are you doing this?
You are a retired investor, no one is making eavesdropping.
The NSA has a budjet of 52 billion dollars and the ability to monitor
Thousands of tapping per second, you think you are not going to use?
Ok, I promise not to say anything as "Ben Rickert" and "bomb" in the same sentence
excuse
Ben Rickert
Had the opportunity to see what we send, is Charlie, I'm here too.
Yes wait.
- Are you still there? - Yeah
I'll be honest gentlemen
This scared me like lightning
That's a good thing right?
Means that this type Vennett is not wrong
No, it is not
Cool.
Tell me more about these CDO
Vennett mentioned the CDO
but in reality we look, and are far worse than we thought
This does not make any sense Ben.
- Are much larger than the MBS. - Yes, and 90% AAA
- Exactly - Incredible
I looked well for the CDO's who want to make short.
Are bright, worthless, sucks.
Jamie, very well.
What can I say, I'm good to find shit.
So we do short to BB and BBB and the risk is relatively low.
the payoff is 20: 1
So why are calling me? I do not do this anymore.
We need you to get the ISDA
With the license can do short of this crap
we know you hate Wall Street
we are not asking you to do the business
we are only asking to help us to get a seat at the table
It's a pretty ugly desk staff.
Ben the system is fucked-in a huge way,
In a way, we know it before everybody
this is a unique event in life.
I'm thinking.
ok, I turn to Deutsche Bank.
Thank you Ben.
- Do not even enter. - Yes, here as well.
Truth is like poetry.
And most of the people hate poetry.
Heard in a Washington bar, DC
I need to talk to Vinnie now
How in these sanding it? Because from what we are seeing here ...
Building Morgan Standley, fast.
we are looking at the same screen?
- Vinnie these there? - Mark these here?
Did you hear?
The mortgage debt went that way up, is already people jumping from the windows?
Why should they do so, subprime mortgages are up
What?
Vennett want more 1.9 million in collateral
Vennett asked for us to pay collateral.
- What the hell is going on? - We do not know.
- But the bank is demanding payment. - Connects to Vennett connects to this shit.
Connects to Vennett, tell him to come here.
Then, subprime loans will life ah,
but subprime securities that are composed of subprime loans go up?
I know, want more 1.9 million before the market close.
And the rating agencies? Moody's, the download CDOs, covered bonds?
How are the rating agencies?
They are in it.
There are still AAA.
What? Are you kidding me? These motherfuckers.
Will the public and only care is to waste.
Hey, Mark, is not all.
The Morgan Stanley, risk assessment are here with Kathy Tao
They are trying to convince her to change the Swaps
Apparently acquire insurance six years ah waiting for Armageddon in real estate is not wise
What did you say?
Nothing yet, she asks if this is one of your cross.
Ok I want you to come very quietly in the room says the types of risk assessment
To go fuck
Then meet me Standard & Poor's, let's talk with Georgia.
Bring me the fucking Vennett want to bust him with head
Gentlemen, I spoke to Mark Baum told him to fuck.
I can not see anything
My eye doctor is always busy.
I end up working all morning.
So how is that Standard & Poor's the help?
I can not understand
how the rating agencies did not drop the subprime bonds.
since the subprime loans are deteriorating.
this makes people worry, but is still within our models.
- So ... - Says you.
So is convinced that what is inside these securities are healthy loans?
That's our opinion.
He looked at data from loans, gave them to him to someone with pulse?
Sorry, what you think we do here all day.
We do not know, that's why we're here.
This is what I do not understand, if these obligations are as stable.
You should check your colleague.
Ever refused review
Georgia?
Have you ever refused to evaluate any of these AAA bonds?
We can see the paperwork in those businesses?
I have no obligation to share that information with you.
Answer to the question, can you tell me once you've checked.
and who has not given banks the% AAA they wanted
If you do not give them the rating they go to Moody's.
Right next door
If we do not work with them
they go to our competitor
It is not our fault.
It is simply how the world works.
- Oh what the hell. - Now you can see.
And I never said that.
Sell ​​rating by a rating fees shop
If they can do less make less
Nobody said that.
And is not my decision, I have a boss.
Are you kidding me?
How does your boss behaved in the IBO?
this is your posture?
You must work for themselves.
So anyone who has a boss can not be responsible for illegalities?
It has four years?
No, I have four years.
I wonder what their incentives.
It might be of interest to have the changed ratings?
It will be? Maybe?
How many credit default swaps have?
Does not make me wrong.
Not only makes you a hypocrite.
Failure to comply with mortgages rose and CDO appreciated
- Unbelievable. - We know.
It's all over.
I called a friend, he did not even know it was a CDO
I had to transfer to the Bear and Deutsh $ 70 000
is as fish = 2 + 2
If we enter a game addict will lose everything
and I have to change myself to my mother's house
I can not do that.
Well, I have an appointment.
Wait, Ben
or banks have no idea or do not know how to evaluate the CDO's
or are a bunch of thieves that CDO are not worth shit
and they are hiding it.
I think we should buy more swaps.
What?
Let out of things and pay, made a deal.
No way
Are you kidding me? come here and say such a thing?
No no no no.
No, no, no.
Over?
I think so, I think we went there one muscle back
Mortgage default, did nothing but go up
however come to ask for a higher price in the bonds
Please explain it to me.
Not think this is right.
Why do not we get out of this business now?
He did not say when we made this deal that
rating agencies and the banks had no idea?
- Yes, she said. - Shut up
Now they have feet to walk think they are made
and are surprised?
That's not stupidity, is fraud
Tell me the difference between stupid and illegal
and I say hold my brother in law
It was funny.
I do not think they realized how the system has no idea.
Yes, they are to spend sneaky things.
but believe me it is driven by stupidity
Look at you
Undergo sínicas people
but still have faith in the system have?
I do not
Well, except Vinnie.
and who gives a shit about that?
- No way. - Look ...
Or we are right or wrong we are in a huge way.
If we are wrong we have to find someone in this business safe.
I'm not feeling confident that we are certain
and if we are wrong who's going to tell us
who is who understands this?
Does not make any sense
I think we have to go to Vegas.
What's in Vegas?
What the hell is Las Vegas?
The American Securitization Forums are next week.
Any vendor obligations, CDO and subprime will be there.
If your bet is against their money
it is best to see how their money is stupid.
I hate Vegas.
I hear the food there has improved, has a Nobu.
- In one sentence? - If the obligation is rich it is.
I can not sleep on the plane, so I studied.
To focus on what is our aim?
Find out if this is a business that occurs once in a lifetime
or if everybody knows that we are someone who are not
we will be eaten.
Remember this when you know the types Ber
I'll set up face to face meeting.
Oh shit, it will a few years ago was a failed convention
100, maybe 200 people showed up
500 billion years later we have this
there is much traffic here?
someone hit a full of white people pinhada who can not play golf
who are these clowns?
Go, leave you, it seems like fun
Vennett said they were people who were betting against
Here we go, Chris, to my left.
When will we be able to face these gentlemen?
Chris gives them the keys know what these to give?
First of all, how was the trip, as they are?
Good.
I'm here for six hours
've been in the gym, ate two eggs
Black Jack played with Standley
Thanks for your diary.
Face to face, liked to have a face to face
We are sourcing information
Not to publicize our position
We do not want to scare anyone, we can do this?
Has a big mouth, keep it closed a bit?
Okay, we play clean.
Ladies and gentlemen, business is good
profits are strong and the mortgage remains solid
yes, we had to accept losses in subprime last year
but these losses will be in the 5%
Now in our residential sector
Mark is not a Q & A.
I have a question please.
Lord, the questions and answers are only at the end
but you know what, seems eager
- How can I help you? - How are you doing?
Fine thanks.
I say it's a possibility or likelihood that subprime losses stop the 5%?
I'd say it's a strong chance right.
Back in the residential sector ...
Excuse me
Yes sir.
Zero zero
there is a zero% probability that their subprime losses stop to 5%
Excuse me
Should be America's bank.
Mark did this when we had in Vegas
He said that and answered the call.
Now since I have to put up with.
Baretta heee, but this is spectacular Uzzi
I leave the machine running the CDO for two more years and then I'm rich
after'm rich as hell and I made life
But has some concerns about the performance of them?
It is easy to see their crime and the interests of the failure to rise
You can stop being a party pooper?
Troucemos not here to talk about work
Why trouce us here
Because we need to dispense with the ammunition to a customer.
I will kill one terrorist, look.
These guys are idiots.
We have to buy all the swaps we can.
Waiting
the former my brother works for EFCC, she told me what was here
if we are to fail at something she might tell us
will give me some tips
however will see how things stand
In fact we are about to invest in real estate bonds
I was asking whether the EFCC was worried about them
I know you can not be specific, but overall
We do not treat it
the truth is that when we had our budget cut
We not very investigated
so why are you here, I thought
I'm not here by EFCC
I'm here by myself
I am delivering my resume a few large banks
How's your brother?
How do these to give your curriculum to banks?
It was not supposed to be policing the big banks?
Jamie grows
There should be a law against working for a financial company
after you work on a financial regulatory
No
It is a Goldman
AAA swaps can do at 500% points, maybe
It is selling as if the obligation were to collapse, even though she's going up?
And so.
What the hell is going on?
Louis, you can come early tomorrow?
I have to unload some stuff to power by selling the Swaps
If investors withdraw investment what will happen?
We are made?
Sincerely, I do not know
The obligations are not down
I do not move
It's possible...
we are in a completely fraudulent system
Or is wrong
Of course, it is possible, only I do not see how
Maybe when someone is wrong does not know it
See you in the morning
they rise prices and continue to call us Brownhold
They do not have the money or reputation, do not take to heart
I do not think the strip club in me, I think I'll have a drink
and watch a movie, focus me in tomorrow's trip
We need some business?
We need a deal that we can pay
they will not refuse.
What can we do?
we can...
... AA tranches
and apostássemos against AA tranches?
Who would not take that bet?
we know that they say they are 95% rating of AAA
but in reality it is 25% 0% some
We also know that the low bond fail over 8%
the upper tranches are affected and go to zero
I bet those AA at this time are in fact B's
I never say these words, but I think these right.
Ben, the reward is 200: 1 but are bogus ratings
They will charge us cents on the dollar if we invest against them.
Even when I thought you were clowns
Nobody in this world to bet against AA
banks think that we are mocados or a heart attack
they accept every cent we have to offer.
Bright
This was what we did, no one remembered to do
Baum or Vennett not even thought of doing shot the AA
But we did in
so we're thinking about doing some short AAA tranches of CD0
What are you saying?
we want 50 million in tranches AA swaps
I do not understand
They may purchase the AA they want.
40 million against AA
Seeing you how many you want.
I completely understand Bob.
For, stop it.
What?
They have no idea what just done?
Come on, just do the deal of a lifetime.
We should celebrate,
Just bet against the American economy
Yes, of course we did
Which means that if we are right
people lose homes, jobs, reform pensions
You know what I hate in banking? Reduces people to numbers.
Here is a number
Each 1% unemployment 40 000 people die knew?
No, I did not know.
We were just excited.
Just do not dance.
- Okay. - Where are you going?
Suddenly I was scared.
First of all, good show, it was fantastic
- Thank you. - His big mouth was a revelation.
Do you think your team is being deceived, then this is a great opportunity
to know your enemy.
Try not to be very protective and listen to some
Okay, who is this guy?
A solid idiot Gold
- I'm CDO manager - a CDO manager
I did not know there was something to manage the CDO
We select the securities that come in CDO and monitor
represent investors or Merrill Lynch
Investors
But Merrill Lynch will not send you any customers
unless it has in the CDO product from them
Good question
Say Marril and I have a good relationship
It has a good relationship with Merrill Lynch
We have done business together for long time
Then the CDO you create are of the best quality and value
- Absolutely. - Absolutely.
This all concerned with the increase in the default
I personally do not assume the risk of the product
OK
Let me see, the Bank binds you,
They give you the obligations that want to sell,
customers money to run the business,
chorudos fees for what you do
but is the investor?
- I'm right? - Yeah.
But we are not in the Merrill Lynch building.
- Where are? - In New Jersey.
20 minutes away
5 using a helicopter.
- Funny? - Hilarious.
Your head is about to explode
No, this too curious to explode
The CDO has part in CDO and CDO B B has parts in the CDO
and then placed in CDO are both C?
This is called CDO squared.
CDO of CDO
then there CDO made opposite their Swaps
We call them synthetic CDO
This is crazy
It is not possible.
His face seems to boil seems the bad kind of Dune
Okay, say we have a pool of 50 million subprime loans
How much money could be to bet on it?
In synthetic CDOs, Swaps, now?
1 Billion dollars.
What?
If mortgage bonds that Michael Burry found were these
How big is the market for playing with mortgage bonds and mortgages?
About 20 times
if the mortgage bonds were a lighter
and CDO were a molotov coktail
then the synthetic CDO was the atomic bomb
with a drunk president with his finger on the button
was at that time, that silly restaurant
with the stupid look on his face that Mark Baum realized
the economic world could collapse
And I know what they're thinking, what the hell is a Synthetic CDO
Here is Dr. Richard Thaler father of "Behavioral Economics"
and Selena Gomez to explain
Okay, so a synthetic CDO works like this:
Let's say I bet 10 million in the hand of Black Jack
10 million because this hand is only one mortgage bond
Ok, Selena has a good hand
Showing 18
The dealer showing 7 Selina has a good hand
Good chance, in fact the chances of winning are 87%
then my chance is good, I'm winning
Everyone here wants to get in on the action
how can I lose?
This is a classic mistake
In basketball is called hot hand
a branded player basket a number of times
people are certain that it will do next
people think that what is happening now will continue to happen
during the boom of the real estate
the markets were always going up
and people thought it would never come down
people who are watching and think that I will not miss
They will make a bet beside
ok, this is the first Synthetic CDO
I love Selena Gomez, I bet 50 million as it gains
and give you a chance to 3: 1
3: 1? I accept.
Now, someone will want to place a bet
the outcome of the bet them
This brings us to the synthetic CDO 2
200 million bet that lady glasses wins the bet
She'll probably win, so I want good reward.
How about 20 to 1?
Done deal.
And this goes on and on with more and more synthetic CDO
And we can turn what an original investment of 10 million
in billions of dollars
It's OK?
No
I feel quite sick.
I'm going away,
think I'm a parasite not you think?
but apparently the company values ​​me
enough
actually, let's do this
I tell you how much I'm worth
and tell me how much it costs
you are a brave bunch of shit
Make short everything that that kind played
I want another half a million in swaps
Are you sure about this? the cost side can you generate bankruptcy
Where are you going?
I will try to find moral redemption
Things work in cycle
I think the economy will collapse
Are you coming years to say that the system is broken
why are you so shocked?
It is more distorted than imagined
I love being the virtuoso
I am a banker, I am part of it
have always been Mark
- It is authentic. - Changed me
It moved me to a person who can not communicate
He was in pain, my brother was full of pain
There is no perfect way to help
He says, it's scary
so stop trying to get the world
He said to me
You're not a saint, saints do not live in Park Avenue
He was having bad thoughts
my first response was to offer you money
I offered you money
his face was so undone
Michael
It's all right?
- Yes love - Are you sure?
Yeah
I am fine
For all investors
As you may know
our agreement allows me
to take extraordinary measures
when markets are not working properly
I have reason to believe that the market for mortgage bonds
It is fraudulent
then, so you can protect investors from this fraudulent market
I decided to restrict the retreat of the investment until further notice
sincerely Dr. Michael J. Burry
I will sue
Everyone, deep in his heart, is waiting for the end of the world.
Haruki Murakami, 1Q84
Please can you stop changing the channel?
Put the favor by business channel, thanks
Bankruptcy in Monopoly
They were laid off 3300 workers ...
It is starting
I'll call you my mother
She has a lung, I'm impressed
Arise and enjoys
It can not be, the major banks are not so stupid
Kathy goodbye
So?
Kathy thinks it would be a good idea to sell them to me the shorts
What is new?
She said Morgan Standley buy
Shit
What you said?
I told him I do not sell shit
Bear Stears liquidated two funds cover after high losses in subprime
If you need the files 2005
Fields The process is very specific to file last year
Okay so you can go blow a hello to Lawrence
You can not call me in a week?
I'm sorry Mike
Goldman had a system error missed a carload messages
Others said they had a power outage
and Morgan Stanley had a server crash
Weird
I would call it unlikely
As we are in the market?
I think it's the same Mike
Can you explain this please?
how the value of a contract for insurance
It is not affected by a reduction in what assures?
Are independent markets are not always related
I know it sounds strange, but this is very complicated products
They are related.
They will lose their homes, their jobs, they will lose ...
Do you hear me?
This is how the end of capitalism
this is how the average age again
I do not want to talk to the parent, keep your money.
She says she was walking to Xanax and increase my dosage Zolam
I asked Ben to check the price of shorts
He says the CDO has not moved
This is crazy
We realize that they are thieves and should be arrested
Look at the tables, you can see that the CDO are worthless
You know what they are doing right?
They are selling the shit of its CDO
Then go to another bank and make them short
We will press, this is a hole, who's would not publish it
Robert Redford
to make the short who had
I noticed
What am I supposed to do
write an article to say that we are all fucked up?
Yes, this is a perfect title
Right now all banks are to discharge these obligations merdosas
to customers who unsuspecting
and devalue not until have not with them
this level of crime is unprecedented
even in Wall Street fucking
Jamie
This is me being honest
It took me years to have this reputation on Wall Street
No bank or rating agency will confirm this data
just because it comes from two types
a garage band with hedge funds
Thinking that this is an apocalypse
I thought true ages Casey
I have to say I really thought
tries to be true to a 3-year-old boy and a woman to make the Masters
I will burn my reputation in your guess
- Wow - Wow
Thank you for coming was a show
Casey, always hated you because you were a bastard in college and still are
Thank you Charlie
still live with your mother?
Charlie walks.
Subprime bonds fell from a cliff
goes the rumor that failure is huge
I heard testimony earlier bet is Goldman
Jared that the caus here as we are?
hides the gun because there are no more worlds to conquer
Get out get out
no one is buying CDOs
Now everyone wants swaps, swaps are the most popular product
This is good for us
Yes, and no, I heard from someone who heard it from someone
Not Alex, no, excuse
Morgan this to have quite a few losses in the bond sector
The boat this sinking
maybe it's time to pick up the lifeboat and out
I'm excited, excited to the boobs
Good
- Can you feel? - No.
What did you hear Tomy?
It is happening.
Everyone wants our Swaps
Kathy's office is looking for you.
The play a different tune, that's not good
Listening
Dr. Burry
Goldman Sachs has revised its position, I want to discuss your margins
to make sure that they are fair
I think that is already assured
then they are free to review my exact position for a change
because now it is in your interests
I do not know what you ask me
I think
I think I have said
Tell Jeferry Goldman that will not transfer the funds
OK, we talk later
Thank you for coming so fast Mark
I know you have heard rumors we've had some losses
Happy birthday
In what?
thank you
having fun?
Yeah
Tons
Just wanted you to know
Yes, Morgan suffered some losses, but liquidity is strong
and there is no cause for concern
Did Bennie Cleagor is concerned?
because what you hear is that he lost a lot
Kathy come on, we know each other, what happens?
How bad is it?
Two years ago, Bennie Cleagor and Morgan bond department
also they began to short the subprime real estate
two billion for BBB
Bennie is smarter than thought
No, it's not smart
premiuns in the swaps were to consume profits,
to cover the loss, it sold the swaps A and AA
many
he believed could not be affected
Tells me that he does not have these contracts Swaps
oh shit
All this time I'm trying to figure out who I am fighting
and is the Morgan Stanley
it's me
what is your exposure? 3 billion?
Please do not tell me which is more than 4
- I can not answer that. - Yes you can.
because I go here and people are crying in the corridors
Kathy, flames me to say it's okay
and nothing is well
What is happening?
Well, the exhibition is 15 billion
My God
He continued to say that failure above 8% were impossible
there would be more than a million homeless
But we have nothing to do with Morgan Stanley
Yes, says it to court
Morgan failure and all our bills go to your balance
This is insane Morgan makes shit and we do pay?
makes short the shares of the bank and waiting
or sell our swaps when the market opens
we get our bonus, investors are left with their profits
we get 30 cents per dollar
It's not bad
worth three times
not if there is no more market for sell
forget, I will not donate lifeguard
Mark, if Morgan is the pool, just nothing
Vinnie
come on, sell when I say
I realize that this is personal for you
but we have a responsibility
No, we do not have
Responsible? No one is acting like it
fuck the responsibility they kidding me?
the idiots of the big banks
We are talking about, please excuse us
Let's wait and wait and wait
until you feel the pain, until eat bleeding
That's what I
and our customers who have entrusted their savings?
I say when we sell
This is not your
Hey, I say when we sell
thou commandest Mark
Have you heard the news?
Not only two of the great dividend funds Beer will life
as it is now legal action
Come on, pull, pull
then you may even collapse
a risk that should not have
We bought 80% of our swaps to Beer lost everything
That's my opinion
buy this shit, now we know them sell
I know we have to ask Ben to do
I'm trying to call him, but he does not return the call
I know he is on holiday with the woman's family
They are in England
What?
- Hello or - Boys
Yes, we are here
I phone via wifi
I'm trying to sell 200 million in guarantees
a pub
smells like sheep
You can do this
Do not want to push, but if we can not we will lose it all
let's see what the appetite of Credit Suisse
Speech Brownfield like to unload my credit of default swaps
What's the matter?
20 tranches of CDO's and AA
These are good evil
Absolutely, they are a great shit
What is the value?
the value is 205 million dollars
okay, we can go to 40
No, we want at least 100 million
100 millions? What is it? A dealer or a banker?
Because if a banker can go fuck
I do not know if we can go to the market
Give me your best price
If you do not want to do business can turn off
That's what I thought
90 million
70
85
78
84
78
84
Dr. Burry, it seems that collapsed
the fall of the financial sector is imminent
I start to sell my position
1.3 Billion
Okay, I hope
Presado Lawrence, had a 489 million profit by Scion Capital
So I was right
I had a dog's life for two years but ...
was right
and everybody was wrong
and yes, I had a bonus check for it
sue me
It's too much money, I get it, I can sense that this judging me
It is palpable
but hey
I never claimed to be the hero of this story
Hello Ben, as we are?
Excuse me?
80 million
- 80 million is good, right? - 80 is great
Thank you thank you very much
Many of them were life
They had much luck
The biggest French banks froze one carload accounts
It is coming to Europe
the Greek islands are finished
Spain is tenir
Are you serious?
Before going, I wonder
why did this with us?
Not because I had to do it
thank you, but why?
you said you wanted to be rich, are now rich
While the housing market and banks still struggling,
only one of the shorts was to sell
Mark Baum
So it was not perfect when it was asked to speak at a conference
alongside Bruce Miller famous investor
After you have your debate
Alan Greenspan, one of the architects of this crisis would speak
All of Mark's office appeared, even invited friends
This was Ali vs. Foreman of the financial world
the royalists against the fools
and if this seems too perfect, believe me, this happened
Welcome
Please give a warm welcome to Mr. Bruce Miller and Mark Baum
Fasten your seat belts
As you know Bear Stearns received a JP Morgan loan
course we have to see how the markets react
but this should cause no longer have concerns about their liquidity
Then you should not think about selling its 200 million Bear shares
No, on the contrary, I think that when I leave here I will buy more
to the opposite point of view Mr Baum
I have to me by standing for it
Hello
My view is quite simple
Wall Street took a good idea
the mortgage bond Lewis Ranieri
and transformed it into a bomb
fraud and stupidity
which is on track to decimate the world economy
How do you feel really?
I am pleased to see that still have sense of humor
if I were you I would not have
Now, everyone who knows me knows
I have no problem telling someone what's wrong
But for the first time in my life
It is not as nice
we live in an era of fraud in America
not only in banking but in government
Education, religion, food, even in baseball
what worries me
It is not that fraud is not good
or that fraud is bad
It is that by 500,000 years fraud and short-sighted never worked
not once
Is 37, lowered again
It is to go to the pool
How the hell we forget this?
I thought we were better than this
the fact that we are not, it makes me feel good or better
makes me feel sad
Every time I refresh is lower
and so much fun it is to see these Wall Street morons
to be completely wrong, and you're wrong
I know that at the end of the day
normal people will have to pay for all this
because always and always do
This 32
These are my 2 cents, thanks.
I will shit on Deutsche
We have an answer?
Across Wall Street history
no bank failed unless it is for criminal activities
I get me by my stubborn optimism
Mr. Miller, sorry, quick question
Since he began to speak, the Bear Stearns shares fell more than 38%
You will still buy more?
Yeah, sure, sure I buy more, why not?
BOOM
This concludes the first part of our presentation
then we have the legendary Alan Greenspan
The giant Lehman Brothers was stopped and the zero
I have to see inside
As?
Anda.
I left my phone in the office
Already handed my card, care that you use yours?
I do not care anymore, you can do whatever you want.
In the direction of their means of transport do not talk to the press.
I talk to anyone.
Would you like something to eat tonight? There is this new site Cuban
- Seriously? - Yeah.
- You and me? - Yeah.
It looks cool, like, thank you
Mark is a bloodbath here.
Morgan shares the lost value
I wanted to talk to you for taking her money
That is, or is now or never
We sell
Mark
Mark, do you hear me?
Mailbox 1, you have 15 messages
Mike can not talk to you, call me as soon as possible
These buying shares? The market is increasingly low're crazy?
I met my wife on Match.com
My profile read:
I am a medical student with only one eye
and a strange social way
and $ 145,000 in student loans
she wrote back
I am of what I look for
she was honest, then let it be honest
The housing crisis is a major financial opportunity
Making money is not how I thought was
This business kills part of life that is essential
the part that has nothing to do with business.
the last two years my bowels seemed to eat
everybody who respected
not talk to me, except for lawyers
people want an authority to tell them what to value
but choose this authority, not based on facts or results
choose because it seems authoritative and family
and I am not, nor ever have been familiar
then I conclude that I must close the bottom
Sincerely Michael J. Burry MD
This was not how I imagined it
What did you think we would find?
Do not know
adults
Mark you there?
They are leaving the White House
there will be a bailout
Well, it had to be
They knew
money ceased to be the ATMs they had to do something
they knew that the taxpayers would rescue
they were not to be stupid
just did not care
Yes, because they are crooks
at least we will see some to go to prison
right
- The party's over. - Do not know.
I have a feeling
that within a few years people will do what ever
when the failing economy
They will blame immigrants and poor
But Mark was wrong
In the years that followed
hundreds of bankers and rating agents went to prison
the EFCC has been completely redone
And lawmakers had no chance
They had to let the banks fail
and regulate mortgages and derivatives
I was just kidding
The banks accepted the Americans' money
and they used it to pay themselves big bonuses own
and to lobby Congress
and then they blamed immigrants and poor people
and this time even teachers
and all this, only one banker went to prison
this poor guy
Kareem Serageldin of Credit Suisse
he hid millions in losses on bonds
something that almost all major banks did during the crisis
Mark can sell now?
The fund will make almost one billion dollars
rid 200000
You know that when we sell
we will be like the rest, you know it.
We are not the bad guys here
We do not commit fraud and not break the American dream.
they did it
Now we will give them a kick in the teeth
one billion dollars
Right
But we have to close it or it will be zero.
Mark's now or never
OK
Sell ​​all
When the dust settled down after the collapse, 5 trillion dollars of pension and real estate value,
401,000, savings, and obligations disappeared
8 million people lost their jobs, 6 million have lost their homes
And this only in the United States.
The wife of Mark Baum, says Mark became gracious after the collapse
and never said "well I said" anyone
Danny, Vinny and Porter were to manage the fund in Manhattan ...
... Where there is a Nobu.
Charlie Geller and Jamie Shipley tried to sue the rating agencies
but everyone is their river
Jamie also manages Brownfield but Charlie left New York
to live in Charlotte and start family.
Ben Rickert lives with his wife in a large orchard
They have many seeds.
Michael Burry contacted the government several times
to see if anyone wanted the interview to learn
how did you find out that the system would collapse years before everybody
No one returned her calls. But it was audited four times
and interrogated by the FBI.
He still makes small investments focused on a well:
Water
In 2015, some major banks began to sell billions in something called
"bespoke tranche opportunity".
Which, according to Bloomberg News, is just another name for CDO