ipl-logo

The Big Short Movie Analysis

1221 Words5 Pages

The Big Short Management and Leadership Theoretical Component Management – The process of dealing with or controlling things or people. Leadership - The action of leading a group of people or an organization, or the ability to do this. Management and Leadership are two very different things. “A manager is appointed in a position of authority which enables him to insist on people doing as he/she instructs. A leader has the expertise to make people aware of the advantages of doing a certain thing, thereby creating a desire in people to follow him/her”. Good management is managers who are also leaders, they should also take responsibility for all that is done under their ‘command’. Application to movie In The Big Short it is emphasised how corrupt, …show more content…

Ethics is deciding what is right or wrong using ones moral principles. These two work hand in hand and are supposed to be followed by all businesses and employees. In short Professionalism is what is expected and ethics are what is expected not to do. Application to Movie In the movie The Big Short, it seems as if almost nobody has any ethics at all. Firstly, the banks hugely increased the market for synthetic CDO’s. This is borderline illegal and should be illegal but isn’t. These were a huge contribution to why the housing market collapsed. Secondly, mortgage brokers are seen giving out multiple million dollar loans to anyone and they were actually targeting people they knew couldn’t afford it. This is illegal and very unethical. This also led to the housing market collapsing. In the movie there are an evenly spread amount of people who are very professional and ones who are the …show more content…

There are many types of investment such as bonds, stocks, investment funds, annuities etc. The sole aim of an investment is for your asset or financial input to grow into more therefore gaining you profit and the higher the risk the higher the reward generally is. Application to Movie In The Big Short Scoin Capital used growth investment strategies. This was a high risk high reward bargain that paid off in the end. Banks were making money off their mortgage loans they were selling off in synthetic CDO’s. These debts were actually worthless. When the housing market and Wall Street crashed, many lost their investments. These were meant to be safe investments but because of the actions of the banks, mortgage brokers and many other factors, millions lost everything. The Big Short Conclusion The Big Short is relevant to the content outlined in the SAG document for

Show More
Related

  • Todd Lubar Case Analysis

    391 Words  | 2 Pages

    The mortgage banking business enabled Todd to create connection with First Magnus Corporation-the largest privately owned mortgage companies in the United States. He later increased his access to capital and expand his operations by opening a charter funding in year 2003- a First Magnus subsidiary. Todd Lubar was familiar in his niche market having worked with more than 7,000 clients who had tried to acquire finance from other traditional means but had failed. Through his confidence, understanding and the overall knowledge to analyze risks, he found the need to develop Legendary Financial that was meant to fill that gap.

    Read More

  • Who Is Lanny Breuer's Ethical Obligation?

    187 Words  | 1 Pages

    It would seem the government did not fail to prosecute the executives responsible for the mortgage fiasco. “The Justice Department has an ethical obligation not to bring cases unless they have a better than 50% chance to convict. They argued the merits of each case and always came up short of the evidence necessary for a successful conviction. Greed is not a crime.” (Henning, 2015) The Assistant attorney general Lanny Breuer was not confident in his ability to prove criminal intent and therefore has not filed charges.

    Read More

  • What Are The Similarities Between Great Depression And The Great Recession Of 2007

    957 Words  | 4 Pages

    However, the recession of 2007 was affected largely by the house bubble collapsing. The financial industries had designed complex ways for people to receive lends. There was a larger risk later that neither the investors of firms

    Read More

  • Redlining During The Great Depression

    72 Words  | 1 Pages

    During the Great Depression new organizations formed from the National Housing Act of 1934. Organizations like HOLC and FHA (Federal Housing Administration) were placed to assist homeowners unable to pay their existing mortgages and boost the overall housing market. Residential Security Maps were created by HOLC and the practice of redlining was implemented by FHA to categorize mortgages and loans according to desirability for investment and promote a ‘systematic place-based appraisal

    Read More

  • Great Depression Dbq

    1331 Words  | 6 Pages

    Although there are many aspects to the Great Depression, this essay will focus on five important points. First, an in depth look at the cause of the Great Depression will be examined. Then, how it affected the American people will be discussed. Next, an observation of how President Roosevelt’s administration worked to fix the Great Depression will be addressed. Also, the effectiveness of the programs put in place by the government will be presented.

    Read More

  • How Did The Dollar Affect The Economy

    1536 Words  | 7 Pages

    Kyle Eakin From British taxes contributing to the Revolutionary War to the housing collapse in 2008, every major event in the United States can be tied to money in some way. Money has been a catalyst of change over our history with both positive and negative results with the Department of the Treasury naturally being a central factor. The currencies that predate the dollar helped to create the United States as they funded our fight for freedom in multiple wars. The US dollar, a currency created less than 250 years ago, has shaped the United States history and amazingly become the most polarizing and well-known currency in the world economy. Beginning in 1690 each colony had its own currency which led to many issues of exchange and the value of each currency.

    Read More

  • Causes Of The 2008 Recession

    1001 Words  | 5 Pages

    The 2008 recession was a major worldwide economic downturn that began in 2008 in America and continued into 2010 and beyond. The 2008 Recession was caused by the Financial Crisis of 2008; The 2008 crisis was due to a collapse of Lehman Brothers. Lehman Brothers a sprawling global bank, in September 2008 almost brought down the world’s financial system. The 2008 recession was by far the worst recession since the Great Depression of the 1930s. The worldwide recession hit bottom in December 2009; however after five years there were few signs that the American economy started moving upward again.

    Read More

  • The New Deal Programs In The 1930's

    2092 Words  | 9 Pages

    This was not all the FHA’s fault however. A lot of the blame can be pushed towards the investors themselves. The FHA did not make the loans, they only insured them. The FHA said “finding buyers for those mortgages proved difficult”. (Hyman 142)

    Read More

  • Securitisation In Australia Essay

    593 Words  | 3 Pages

    Prior to mid 2007, regional banks securitised around one-third of their housing loans while the major banks securitised less than 10 per cent. As a result, despite their smaller size, the regional banks accounted for roughly 40 per cent of Residential mortgage-backed securities issuance whereas the major banks accounted for 20 per cent (Debelle, 18 November 2009, pp.44). The financial crisis had a negative impact on securitisation leading it to the residential mortgage-backed securities to have credit problems, which made the credit market more cautious. Because of the crisis, there was enormous loss incurred by US and euro area banks from their holdings of mortgage-backed securities.

    Read More

  • The New Deal: The Great Depression

    382 Words  | 2 Pages

    In order to fix the banking crisis and help many families, the Federal Depositors Insurance Corporation examined

    Read More

  • Freddy Mac And Fannie Mae Case Study

    183 Words  | 1 Pages

    Freddie Mac and Fannie Mae played a major role in creating a secondary market for mortgages by providing liquidity to the market, thereby increasing demand for mortgages. Freddie Mac and Fannie Mae had GSE statuses, which enabled them to take more risk relative to other financial organizations/institutions. That being said, they were able to purchase various mortgages from different financial institutions, package them into mortgage backed securities, and sell them to investors on Wall Street without an explicit guarantee on the mortgage values. On the other hand, Ginnie Mae, a fully government-owned institution, fully guaranteed repayments of mortgage backed securities.

    Read More

  • Crisis Credit Visualized Summary

    568 Words  | 3 Pages

    The Unrated was bought by the hedge funds. The investment banks generate huge profit and repay debt to central banks. The risk of the investments are carried by groups of investors who bought the Credit default swap. This is done on the basis that house value will always go up. The risky loans created lots of insolvent

    Read More

  • Lehman Brothers: Financial Fraud In 2008

    2178 Words  | 9 Pages

    Executive Summary Lehman Brothers were an investment bank involved in transactions worth billions of dollars and one of the most powerful investment banks in the world. Lehman Brothers collapsed in 2008 following bad investment in the sub-prime mortgage market and used bad accounting practices called Repo 105 transactions to try and cover up the bad assets. This report sets out the use of the fraud triangle when describing the actions which led to the collapse. The pressure applied on the bank, the opportunity due to the lack of regulation to carry out the actions and the ability of the bank to rationalise their decision making.

    Read More

  • Reflective Essay On Leadership And Management

    784 Words  | 4 Pages

    Introduction- The leadership and management are two important pillars of modern day business. “You manage things; you lead people” Grace Hopper (retired Admiral, U.S. Navy). On one hand managers, not only motivate people but they also set the course of direction and organize to achieve the targets.

    Read More

  • The Importance Of Entrepreneurial Leadership

    1479 Words  | 6 Pages

    Leadership: Definition Leadership is the process of influencing the motive of the employees and so directing, guiding them to the proper completion of the short-term goals and the mission, vision of the firm. Leadership referring to achieve a specific set of goals of the business enterprise by minimizing risk and more advantage of opportunities is also called Entrepreneurial Leadership (Rao, 2015). Today leadership is such an iterative process when the leaders should have a variety of qualities and expertise in different area of management. Here, different theories will be explained which can clearly identify the scope, the responsibilities and the area of expertise required to be successful leader.

    Read More

More about The Big Short Movie Analysis

Open Document