I read somewhere that the reason he took the cups, Is because he wanted a souvenir from the banks since he didn’t think that would exist no more after the collapse.
And America. Our businesses are stealing us blind, and the moment anyone tries do something about..."Big Government", "These regulations are overly complicated", "They have a chilling effect on..whatever".. As long as government is afraid to take on big business... America is Wrong.
They laughed at his concerns about their failure to pay. Turns out it was a genuine concern, not so much that they couldn't pay, but more that they wouldn't pay. Which as it turns out they snarkilly avoided as long as they could.
Yeah was he not going to take them to court and they eventually did because they didn’t want the public embarrassment and also he losing more money in court
Another victim of the actors she loves. There was genius anywhere. So many people wrote about the pending doom. Grading agencies were paid to lie about popular stock that everyone was put under. Stock that wasn't even worth a C were graded AAA for no reason
I think they were a market maker in those products and manipulated the price of those products until they could offload their losing side of the bet. I would imagine that's the way they would play it.
both actually. He knew that the market was collapsing. If all debt triggerd at once, he was afraid he was going to be last on the list of payment because, basicly, he was profiting from their losses.
@@onboardbasil that's right, but michael Keaton only played in 2 Batmans, not a trilogy. Val Kilmer played in the third one. I think you're talking about Christian slater but he was never in batman.
@@TSAVVVV yese it was and it will happen again in 1 to two month check the defaul rates or gold and silver prices if you do not believe me it is not a matter of its a matter of when the us dollar goes bust so i would advice everyone to byt silver and gold with atleast 5 x leeverage i would advise 10x the us treausry is conjtrolling the price right know but they will not hold in les that 3 months its all lining up boys come get your money with me
The chef's kiss is how breathlessly the Goldman rep replies "Yes, YES" when Burry asks for a damn coffee mug, worried the slightest hesitation will kill the sale.
Sadly, not a single person in this scene was hurt by the crash, including the bankers. They all got their bonuses and then got bailed out. I wish I could feel some thrill from seeing some justice, but there's none here.
@@NicoNico-re1rqnot strictly speaking true. Lloyds names are liable for everything they own, however so many are so well connected they know that the government will step in before they are bankrupted.
The music probably stops because it emphasises the situation. It makes it stand out, seem more "unexpected" or unnatural, more funny. Music has often the function of emphasising the mood of the situation.
That's Wall Street narcissism for you. The cocky GS people especially the woman laughing in the meeting weren't laughing at the end. Got what they deserved.
@@panagiotisatmatzidis9972No one ever talks about the second part of the massive fraud, how Obama’s admin used the banks’ settlement money to funnel to progressive groups like ACORN versus the American people.
If he wasn’t sure that the bonds would fail (soon enough that he could survive the wait), he would be damn stupid to make that bet. As it was, he had to liquidate a number of positions to pay the premiums.
@@davidweihe6052 Are the imposed premiums their extreme minority of brain cells telling them, “Um, this Burry guy might be right, so why not make him suffer a bit on his way to possibly being right”?
"This is Wall Street, Mr Burry. If you offer us free money, we're going to take it." I love that line because you can tell from the way she says it that she thinks this is a virtue.
Well it is. She has stakeholders that expect to see returns. Getting free money is a good way to make your stakeholders happy. It is a virtue. It's her job to make money.
I wouldn't say she thinks this is a virtue, but she has no illusions that they'll stop people from making (what they believe to be) poor financial decisions
@@a.t3415and he's not some confused granny that hobbled into their office barely remembering her own name, he's running a hedge fund. They've got every right to treat him like a pro and a player - which he is.
I just realized that he was taking the coffee mugs the same way serial killers often take an item from their victims, like a trophy. He was basically murdering these firms, and wanted his little momento.
Dr Burry is a legend. Can not believe he saw the water issue ten years ago in his interview. Last one was year ago about worst inflation and months ago about another housing bubble and the crash of both markets
@@jonpaul6948 he is a human but his true predictions were much more than his false ones. He knows the US economy functioning much more than politicians who run the Fed Reserve
@@jonpaul6948 This is just a question of time. There is nothing that Tesla can do which other car-manufacturers can't do. On top, their cars are mostly ugly inside and outside and terrible built together. It's still an experiment. I'd rather buy a Hyundai Ioniq 5 to be honest. Btw, he would have won on a Tesla-short, because the price for Tesla dropped from 1.000 bucks to 600.
@@MrZillas If it were a question of time he would have held his short. He closed it in 2021. Even if Tesla fails now he was still wrong on his bet and lost money.
And don't forget that Paulsen was running the treasury at that time, and he is a Goldman Guy. Guess who they decided NOT to bail out?? Goldman's biggest rival, Lehman Brothers. So weird....huh?? 🤣
When someone comes to you with something that seems incredibly crazy, and you don't have the presence of mind to have some humility and even consider they may be onto something... you at least need to be prepared to face the consequences of your own arrogance.
You have to wonder if the conversation really went down that way. More likely you'd say something we'd like to hedge against another investment say going long housing stocks and you'd simply ask for the MDS as a hedge rather than say OH! I think the housing market is gonna collapse. Why would they then take the other side of the bet if you let them in on your research?
@@warntheidiotmasses7114 the probability that it went this way is very low... I think. He was pretty straight forward with them, I imagine that it was much more technical in the real moment.
I think the arrogance came from the knowledge that they control the system, manipulate the market, bribe the rating agencies and they could always cheat their way to victory. The likelihood of Dr. Burry being right before he runs out of money for paying the premium is very small.
@@Burncsb The guy does his research, clearly he comes across intelligently, he says I want to bet against the housing market. The suits come back with ok? And however how many hundreds of millions he wanted to short? Can't be. I think my scenario was more probable. Or at least, that's what I would've said. I want the MDS or CDS's as a hedge against going long housing stocks. Hedges often expire worthless. I buy a stock, I want to buy puts as a hedge, oh? they're none? I call up Morgan stanley and I say hey I want to buy Puts. And that's the way I would imagine it works. Not, I think this stock is gonna collapse, can you sell me puts?
dont think you understand the significance. he had to collect them to then prove he'd been to their offices as you can only get them in their buildings.
I don’t think you understood the significance, Dr. Burry wanted the coffee mugs in the same way he got his hair cut at Super Cuts, he was simply being his goofy, out of touch self, and there isn’t a damn thing wrong with that by the way.
Michael Burry was right about what was happening back then, and he is right about what is going on right now, and yet still the mainstream disregards what he is saying. It's sad, and this crash is going to probably be worse than the 1930's.
@@wulfhart2653 I'd google him if you want details, but the short answer is that the market is in a huge bubble across a bunch of different sectors, and it's going to crash in an epic fashion.
@@OmegaTou ow it's gonna be bad, but my feeling is how longer it's going to take to fail, how harder it's going to fail, the complete financial system has to be taken down to "build it back better"
There is an everything bubble; but it will be a massive correction. It will clean out risky investments such as Crypto and high yield bonds. Business will always produce cash, and if you have the mettle to stand by good businesses you will be ok.
I still remember reading an article about how trillions in mortgages were going to convert from low monthly payments to high monthly payments in 2006 or 2007 and I thought OMG it's going to crash everything. Then 2007 happened and nothing crashed and I thought oh well I guess I'm wrong about that ...
The mortgages were problematic but the Gov't threw in a new wrinkle: Mark to Market. Brian Wesbury has an excellent, easy to understand YT video explaining why what should have been just another irksome problem, turned into the crisis it became.
@@wulfhart2653 except the average Joe isn't an institutional investor that can even access the markets. A very similar crisis is coming to a head right now, but it would be almost impossible for a retail investor to make good money off it. That's why brownfield capital needed a billion dollars in capital to even trade the credit default swaps later in the movie. Only institutional investors can actually access markets for derivatives and credit default swaps. Good luck trying to short the housing market on Robinhood
It’s so wild how everyone was certain he was out of his mind, but all he did was look at all of the available information. He didn’t have some secret formula or info
You know what blows my mind is that some guy comes in doing this and they didn’t even think to do homework on it. Like he’s crazy enough to even have the idea, but then do a 100m in swaps. And they don’t ask QUESTIONS?
How to do homework on something that has never happened? That was the amazing insight Dr. Burry exhibited. To see and believe that something which never happened could happen and be so sure of his intellect to bet the house on it.
Comes down to another line said by different people in the movie.. "People don't like to think about bad things happening, so they underestimate their likelihood." 💯
People always paid their mortgages. It’s that simple because the alternative was homelessness. The issue was that was based on the people who up until 2002ish had been able to afford the loans they had been given. What changed was people who couldn’t afford them were being given them. Very different risk profile. This is the issue with treating precedent as a trump card for everything.
seek professionals support not some very cool and semi-knowledgeable guy on RU-vid. Personally, I gather information on RU-vid but verify with Stacey Macken . If it doesn't align with her report, I avoid getting involved. This way i've been able to save a lot of money while making a lot of money
What impresses me most about Stacey Macken is how well she explains basic concept of winning before actually letting you use her trade signals. This goes a long way to ensure winning trades.
Her technical analysis is excellent and hid interpretation/projections of the market is so accurate I sometimes ask myself if she is human haha. Point is, Stacey is the perfect trader to follow for advise and daily signals.
Getting advice from financial advisors, like Stacey Macken , can be a smart move to reshape your portfolio. She has the expertise to help you make informed decisions.
I worked at a firm when a friend in the legal department called me to say Lehman Brothers was going to be announcing their bankruptcy. I said reorganization? He said nope 🙅♀️ 🙅♂️are you sitting down? ...its liquidation. The entire investment bank has collapsed as well as all the investments. I fell out of my chair 💺. The stock market crashed the next day and 50 people at my firm were laid off. Each week one department after another lost 2 or 3 people. By the end of the year everyone I knew either lost their job or lost their house. Things did not get better for nearly four years. That was 14 years ago. Most people I work with now under 35 have never worked at a time where their job was about to be eliminated at a time when no one was hiring.
If you are wondering what he's saying to himself, is that he's realizing that they aren't reading the summaries, and are so blindly confident they gladly threw a $100 million at it without thinking.
He wasnt the first to raise serious concerns but almost nobody will put down the money and stand in the way of a gravy train like this, he could have gone broke as well. I watched a program on mainstream tv pointing out a large amount of fraud occurring, nice story good reporting with evidence, it broadcast and then it was forgotten till the bust a few years later
remember that it was the federal government who practically created quotas for lending to people who were unlikely to pay their mortgages, and it was the federal government who limited which rating agencies could be used to rate bonds
I was listening to this on really high volume for some reason and when they are whispering they are actually talking about the structure of the deal, nice detail
Coz irl he thought those banks and firms would cease to exist after the crash and he would keep them as memento (their last symbol of existence) But we all know what happened😅😅😅
It's funny how she says "...you want to bet against the housing market and you're worried we won't pay you?..." because that's exactly what could happen. She says it like the bank wouldn't be in deep trouble in a collapse of the housing market. It shows that she not only didn't believe it would happen, but that she also had no idea how it could happen. Warren Buffet bailed out some part of Goldman Sachs at that time, if I remember right.
Even after heavy consistent research day and night research,it takes balls of titanium to bet against the market,and he did it without hesitation....kudos to him man
The worst thing is, demand for CDS against mortgage bonds is actually what gave the big banks the idea for creating synthetic CDOs . That way they sold their side of CDS. So they made money again...
This movie is so fun...they took a horrible financial global disaster and crafted a rock and roll style fun movie around it...while still giving us the cold hard truth
Its funny how they try to blame the people for not paying their mortgages. As if, by coincidence, millions of people, in the same period, with no precedent, stopped paying for the house they loved and the only house they had. Those millions of unpaid mortgages came after the fact when interest rates had already skyrocketed, on paper. House owners had already been notified of their payment dues for that period and those dues had tripled in less than one period. F**k the grading agencies 100%: Moodys, standard and poors, Fitch; for grading OTC derivatives as AAA. If the grading agencies didn't know what they were grading then why grade them AAA and if they did know then they are corrupt. Anyway, they acted in the most corrupt manner
You're basically correct. The problem with the rating agencies' thinking was with their thinking. They thought the bonds couldn't fail because they had never failed. There was no historical precedence on which to effectively base their rating but they didn't think it through.
There is a lot more to this than meets the eye. The reason Burry was able to do what he did was because of how the spv for these assets were setup they had to disclose the underlying mortgage s in the bond. Because of this he was able to look under the hood. BBB is investment grade, depending on risk appetite but the fact they were filled with subprime means they were doomed to fail. I avoid investing in America stocks because of the lack of regulation in saying that the opportunity that offers is extremely rewarding. Working in finance is interesting especially the modelling side. I've learned a lot and taking everything with a grain of salt is the most important thing.