Saturday, January 16, 2016
still shocked by the reality of what was behind The Big Short
Having lived through some very personal experiences of what is now called the Global Financial Crisis, I was keen to see this film. I could not face reading Michael Lewis' book. So it was with some trepidation that I sat down on my own in a very busy cinema to relive some of this pain.
I was reminded of the enormity of human greed and how it can become institutionalised and rewarded in companies that spin.
So the film highlights the difference between smart (and often socially inept) men who analyse and interpret financial trends and those who are socially slick but uninterested in what is really happening. The first group questions whether the latter is stupid or fraudulent. If they knew would they continue, or do they just prefer not to know? And where is the responsibility for recognising and analysing the facts - when interrogated one of the ratings agencies admits it prefers to spin to keep their clients rather than acknowledging the truth and risking losing clients to their competitors.
But then the plot becomes even more twisted, because the 'smart' mavericks who accurately predict that the housing bubble will burst because of the high level of constructed financial products that are essentially approved gambling, are prepared to make personal money by betting on the collapse of the economy. Yes the individual can beat the machine - but at what cost. And we all know that those who caused the crisis are largely still functioning while the rest of the international community wears much of the long term negative impact...I left feeling so sad and cynical.
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