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20210312040753the Big Short

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Business
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Colorado State University
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Running Head: THE BIG SHORT 1
The Big Short
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THE BIG SHORT 2
The Big Short
Mark Twain notes, it ain’t what you don’t know that gets you into trouble. It’s what you know
for sure that just ain’t so.”
Louis Renary turns boring bonds into something exciting at Solomon Brothers. The person’s idea
was to compare stocks to boring bonds and provide information on what was viable. By the
adoption of mortgage-backed securities which were bundled up to increase the revenue and
decrease the related risks. The relationship created was between credit rating and mortgage-backed
securities.
Christian Bale plays Michael Burry in the movie. He represents Scion Capital which is a hedge
fund. Under his educational background, Michael Burry attended Santa Teresa High School. In
the university, he studied pre-med and economics. He later earned a medical degree Vanderbilt
University School of Medicine. Michael started his residency at Stanford University Medical
Center but did not finish. Regarding the great depression, he notes that the stock market crash was
contributed by the inability of industries to be sustainable.
Christian Bale’s character was analyzing the housing market. The analysis of the mortgage bank
securities by the character shows that the mortgages bonds were worthless. The LTV means loan
to vale ratio which is the expression of the ratio of a loan to value. The security that bale’s character
is looking to short is mortgage back securities. He is expecting to see failures in the securities after
five years. The key failure percentage of 65% is cited by Bale’s character where the security
becomes worthless.

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Running Head: THE BIG SHORT 1 The Big Short Student's name University Affiliation Course name Instructor's Name Date THE BIG SHORT 2 The Big Short Mark Twain notes, “it ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.” Louis Renary turns boring bonds into something exciting at Solomon Brothers. The person’s idea was to compare stocks to boring bonds and provide information on what was viable. By the adoption of mortgage-backed securities which were bundled up to increase the revenue and decrease the related risks. The relationship created was between credit rating and mortgage-backed securities. Christian Bale plays Michael Burry in the movie. He represents Scion Capital which is a hedge fund. Under his educational background, Michael Burry attended Santa Teresa High School. In the university, he studied pre-med and economics. He later earned a medical degree Vanderbilt University School of Medicine. Michael started his residency at Stanford University Medical Center but did not finish. Regarding the great depression, he notes that the stock market crash was contributed by the inability of industries to be sustainable. Christian Bale’s character was analyzing the housing market. The analysis of the mortgage bank securities by the character shows that the mortgages bonds were worthless. The LTV means loan to vale ratio which is the expression of the ratio of a loan to value. The security that bale’s c ...
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