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The Big Short-rm

You probably know that this movie is not about pants or the measurement of peoples’ height. It is about one of the largest financial meltdowns in this country’s history and how much of it was because of some behind-the-scenes financial trickery carried on by Wall Street insiders. It is based on a book by Michael Lewis which we have not read, although M.B. did read and recommend another book by him, Flash Boys which is about a different type of financial manipulation carried by some Wall Street people

In The Big Short, Christian Bale plays Michael Burry, a real person who is a brilliant, somewhat peculiar guy, maybe Asperger type. He actually was a physician who ended up as a chief of a large financial fund. He studies numbers very carefully and concludes that the mortgage market which has always been thought to be reliable and dependable, is on the verge of collapse. The reason for this (now this is the tricky part) is because hundreds or maybe thousands of mortgages have been lumped together in mortgage bond funds that people buy and trade for the high interest rates that they generate. These funds include AAA mortgages, BB and C mortgages, the latter groups being known as subprime mortgages.

Nobody seemed to have noticed how fragile and vulnerable these mortgage funds are and that this house of cards was on the verge of collapse. That is except this one strange guy and a few other financial wheeler dealers who get wind of what’s going down. Once such team is led by a character played by Steve Carell, who continues to demonstrate his acting chops in serious roles. There are the usual excellent depictions of various key players by Brad Pitt and Ryan Gosling.

There are some riveting dramatic moments as the movie goer can get caught up in the impending crash. You may not fully understand exactly what is happening but don’t feel badly since most people didn’t either as it was really happening. When the dust cleared, this cost our economy over a billion dollars (this movie only cost $28 million). We hope that people who run and regulate our economy learned some lessons from this story, but that probably is not the case. Many people, though, will find this movie quite enjoyable although it may make you uncomfortable about the future. (2015)

****

Margin Call sp     Early in this movie, we see that a brilliant junior member of a Wall Street brokerage team has pieced together information that allows him to realize that derivatives that they had put together from which lots of money had been made for their firm have fallen apart. After taking the information to their bosses up the line, the head honcho has to make a decision whether to try to sell everything although they know it has little value. To execute this would mean that supervisors and brokers alike would have convince other brokers to buy what they had figured out was essentially “garbage”. This fairly succinct plot has captured the Wall Street debacle which involved a few brokerage houses, the results of  which we are still struggling with today. J.C. Chandor, whose father apparently had been a big time broker, pulled together the story and wrote the brilliant script. It was the strength of this story and the vision which Chandor had for the film which convinced Zachary Quinto who also acted in  the movie to sign on with his first time producing team to make the movie . The plot is really actor driven as the overwhelming majority of the film takes place in one floor of an office building with a good deal of talking. However, the actors obviously liked the opportunity that the script gave them as they couldn’t have signed on for the money. The total budget to make this independent film was about 3 million dollars and it was done in 17 days facilitated by the use of digital photography and the “Red Camera.”.  J.C. Chandler executed his story quite well in his first feature film. The all star cast who joined him consisted of  Kevin Spacey, Paul Betany, Jeremy Irons, Zachary Quinto, Penn Badgley , Simon Baker, Stanley Tucci and Demi Moore. The photography, lighting and the subtle musical score complements the undercurrent of the story. You may not understand some of the financial issues which brought about the crisis but the ethical and personal decisions  that emerged were crystal clear and makes for a riveting movie.  (2011)