We saw the movie The Big Short over the weekend and wondered how close the film came to portraying the actual events leading up to the big crash of 2008 and the people who took part in those events. Pretty close, it seems.
Here is a revealing interview with Dr. Michael Burry, the one who (according to the film) saw it coming first.
The money quote for me:
If a lender offers me free money, I do not have to take it. And if I take it, I better understand all the terms, because there is no such thing as free money. That is just basic personal responsibility and common sense. The enablers for this crisis were varied, and it starts not with the bank but with decisions by individuals to borrow to finance a better life, and that is one very loaded decision. This crisis was such a bona fide 100-year flood that the entire world is still trying to dig out of the mud seven years later. Yet so few took responsibility for having any part in it, and the reason is simple: All these people found others to blame, and to that extent, an unhelpful narrative was created.
See the film.
Monday, May 23, 2016: Wrote a short story.