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Please post a one page review of the movie  “The Big Short” highlighting, with explanations, the use...


Please post a one page review of the movie  “The Big Short” highlighting, with explanations, the use of short selling and credit default swaps. Please use references from the movie!

“The Big Short” is a movie about the 2008 financial crisis thank you!
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The Big short is a Hollywood movie about the financial crisis of 2008 wherein there are a group of individuals who were able to detect the massive bubble that got built up in the financial system. So these individuals bet against the real estate market and convinced the the banks to form artificial instruments called credit default swaps which paid the holders of the CDS a sum of money in case the underlying bond defaulted. The "shorters" were the individuals who went short on the entire economy and the financial system as they believed that the real estate sector would go bust and with it the economy would tank and the number of defaults would rise.


So they bought a large number of CDS and waited till the crisis hit in 2008 and based on their positions were able to make a lot of money due to the large number of defaults seen in the sub-prime loans in the real estate sector.

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