Ryan Gosling explains how to turn debt into money | The Big Short | CLIP 

7

9

Did you swap some of the scenes? They seem weirdly cut.

10. it whets your appetite to watch the whole movie. which was very good by the way.

AAA rating from me - no questions asked

Spot on.

Moodys, standards and poors job isn’t at all to ensure fairness or equity, not exactly. No more than the commissioner of the NFL is, it’s really about ensuring people play by a set of rules. Since everyone was able to make obscene money, nobody complained and they were incentivized to keep the gravy train rolling. If they didn’t, they’d find someone else, as the movie mentioned. It’s why big banks are so predatory, they can afford to shaft the people, pay fines, and then get bailed out-none the worse for the wear.

If human beings were not flawed, this would not happen. Alas, we are flawed beings who make honest mistakes and worse. Which is why these things happen again and again. EDIT: Apparently, people are incapable of comprehending what they read. I have not linked the above to honest mistakes. The events leading to 2008, obviously, fall into the "and worse" category. I never imagined this could escape so many but whatever. I hope it is clear now.

@@NovusGM well these weren’t honest, as a person who does banking. When a CDO is mostly BB and BBB-it’s unstable. Those are high risk, making sure 90 to 92% of them were subprime meant it could collapse. People banked on continued unparalleled and unchecked growth, coupled with lax laws and also, to whit, historical data that showed the housing markets stability. VAR, as they call it, is less than stellar at predicting unpredictability. With slow growth and a bad economy, this left many to default on houses in waves never seen before. It’s why now, it’s much harder to get a second house, as was more the custom two decades ago-not to mention inflation being sky high, interest rates being astronomical and other factors.

@@NovusGM cheap free money made us gluttonous and enticed us, banks still win if the have to collect on their lien.

"Okay, but are you sure that's not being a little ambitious?"

​@@DRod1517 " thats what she said "

Okay here's the famous chef Anthony bourdain to explain ! 😂

"Daddy and Mommy give you 10$ for lemon stand ...."

Or a golden retriever.

It’s a mashup of The Office + Succession 😂

Everything gotta be dark and gritty now 😂

Jim literally became asian

HIS NAME'S YANG!

@@AM-ml7et that exact moment just never fails to make me laugh 🤣

And his his "i just got out of bed" hair

@@AM-ml7etit’s actually Jiang, and he came in 2nd at the national math tournament

Fkn hustlers lmao

Humbleness is a virtue

Jiang probably hates the guy but will keep his mouth shut, knowing they'll get rich together.

He enjoys white privilege too.

​@@dontokoi30 that's exactly how the world works 😂 you work with people you don't like to get more money

@@yuriel6691 Nope.

i must be stupid cause i still dont understand

@@possiblyinsane6995You have to watch the whole movie 🍿 Some terms are difficult to understand but you get like 85 per cent of it 💯

I don’t know anyone that underrates it? I assumed (wrongly it seems) that everyone thought it was a blinder..

Basically investment banks sold bad assets and then provided insurance on the assets "credit default swap". Everyone kept doing this until the amount of money the insurance would have to pay out was more than they could afford. The United States Government didn't want the majority major banks to go bankrupt so they bailed out the debt owed with extremely favorable loans.@@possiblyinsane6995

​@@possiblyinsane6995 It's ok. It's meant to be hard to understand.

😂 stereotype used as a tool to convince😂😂😂

The hardest math competition in the world obviously😅

Queue chinese housing crisis

Our math competitions in the U.S. are dog poop wrapped in cat poop!

Using Abacus 🧮 😊

Watch Margin Call too.

you should prolly read a book or two instead, the movie gets a whole lot wrong

​@lowenization It does, but it's right in the essentials.

We need a new movie to explain inflation.

Most of these movies conveniently leave out Congress… this idea didn’t just pop into the mind of banks out of nowhere.

He really didn’t cause a few lines later he says “opportunity” and his boy kinda smirks. Peep it it’s funny

This got me all sorts of hysterical emotions when I first saw the film. Now I'm just rofling HARD to this.

whatever he's gonna answer to that will be wrong because Ryan was playing at him.

Fckin A

Na he was here thats why he had beef with his family

dude really shit the bed

His bed is his toilet. Optimism!

At least he's running with one of the Green Street hooligans.

And not a single word was said about Central banking controlling interest rates through Fiat

@@DarrinSKthank you!

@@DarrinSK thats got nothing to do with it.

@@DarrinSKor Congress regulations that incentivized banks to loan to people who they knew could not pay back the loans

Actually it does. In the lead up to the financial crisis the government was pushing wider credit availability and variable rate mortgages. Then the fed cut rates making these no downpayment variable rate loans look appealing. Then they drastically raised rates. Tell me again how the government had no part in this crisis?

Not an American didn't get the context would you be kind enough to explain 😂

@@AC-iz7eh two comedy movies where the main character is clowned extensively for their beliefs/motives, so ryan was relating to them

@@Dntjockme43 It works on another, more literal level too. In financial markets, when a stock or a sector is overbought because it's believed that it's "too big to fail", then it's described as a bubble, as in it's a market that's heavily inflated and just waiting to pop.

​@@shaun4772I understood where bubble boy came from but not chicken little lol but after Dnt's explanation I recall it being a movie haha

They call me night master

Like Mazda Miatas are nice cars. What color purse does it come with?😅

My quant YANG! Understand!?~ Smartest guy that works for me and proves life! I have him!

I find it terrifying that "guy who does the math to find out the actual value of a financial product" is a specialty job in finance and not a basic requirement for working in finance. It seems like an admission that the industry is overloaded with salesmen and middle-managers who don't actually know how anything works.

I thought I had heard he was just a guy on the set of the movie, but they hit it off so well that they made him his assistant in the movie

@@fryncyaryorvjink2140 ohh ok maybe that’s what the story is.. 2nd hand information not always trust worthy!

@@fryncyaryorvjink2140yeah there’s a few diff sites w interviews w the guy. Pretty cool story imo

@@fryncyaryorvjink2140that’s what he was. Just some dude lol

I read that he was originally just supposed to be an extra with no speaking lines, but him and Gosling hit it off so well on set that they wrote a couple of lines for him in this scene.

Being good at math doesn't mean you have the skills to do a particular skill. Being fluent in English and good at math is a good start; he'd pick it up real quick I'm sure.

@@YOSHIERIDER except that his work is ONLY about maths. So him speaking english is just a plus: 99.99% assured that he was hired 'cause he is good at maths. Most things can be learned, but innate world-class talent in a specific area (specially something so basic and yet important as maths) that has fully bloomed is something that has immeasurable value. Bennett himself more than likely has less value than his "quant" in the eyes of everyone that works in Wall-Street. Is actually quite easy to understand why: he saw an opportunity but only knows that is one 'cause the dude who is good at numbers did his job and confirmed his suspicions.

​​​@@christiantarnoski1231How is digging into tables and just seeing that they're all filled with BS math?

​@@generaltheory you'd be surprised at how many people would just collapse from mental exhaustion looking at a table, let alone analyze it. I would know, cos I'm one of them lol

@@generaltheory moreover, the only person that got the time, capacity and the very idea of doing it was none other than Michael Burry, Bale's character. The dude saw the bubble after checking an insane amount of data from the market. A Quantitative Analyst's job (Burry and the "quant") is not just seeing those numbers but to turn them into valuable information by understanding how they are related and what they mean. And it was insanely hard to see at that: no one knew what was happening until Burry made the effort to check and then each group that shorted had their own "maths guy" check if he was right, which he was.

I love how the idiots from Michael Scott's (IDK his real name or his character's name in this movie) only cling on irrelevant details and make comments about anything, but the real issue they are there to find out about. A bunch of useless twats 😂

That's gay.

@@Jehty21That’s homophobic.

@@benb9284 That's black

@@ElChronicler That's racist.

💯

Like??

Except it's even worse. It would be like if the fish not only didn't sell, it didn't sell because it was contaminated. And then they put it in stew and spiced it up to where it didn't smell bad. But when you ate it... You puked your guts out

Except the seafood stew is still decent for you instead of a pile of dog poop

@@SOSOLRAKlike yo mom, used good. but put on some makeup, yo daddy picked her right up

Roasting the shirt shows Gosling's character is good at reading a room. Someone made a personal jab at him and his motives, so he pushed back in a playground bully way to discourage further questions from the second-rankers. Then he looked the head of the firm directly in the eye and answered the question. "I am an outlier at my own firm. I am a salesman selling you a product. My product is fire insurance on a building that's already burning."

@@Grizabeebles I like how you explained this. I watched this scene so many times, like 8 already and for the life of me I didn't get why the guy that said "Dora the Explorer" smirked at the jab.

That's because it's the angriest hedge fund in America.

That happens when Michael Scott is the manager.

Because they were a new thing back then

@@rawraj1578quantitative analysis was NOT new in 2008 😭😭😭

I am in the middle of studying for the series 7 exam, and there's no way that he would not have known any of those terms

"Shut your fuckin mouth" xD

Not only that, movie explains how rich will use crisis to blame teachers and immigrants. And it did fucking happened.

There can be control. But people wouldn't make money. Control requires responsibility.

Too much swearing...

@@adamdaniel8909 I think the 1st graders can handle it.

@@goober8798 that's fair...

Was shown to us in high school

They will watch this, ignore everything fucked up about it and conclude that this was super smart and cool. Ever talked to kids who watched Wolf of Wallstreet? Belfort is their role model.

"Nice shirt, do they make it for men?" LOL

Whats it at now?

@@SA2004YG well we lived there for 15 years and it came back and we sold for a profit in a good market at the time and we sold it almost two years ago n value of it still growing

@@DOMSGUITARS6140So it’s all about time…

@@DOMSGUITARS6140Well done! That’s the beauty of property, even in a time of crisis as long as you can financially support yourself and ride out the tough times, the property will eventually catch up and make you money in the long run. Same goes for stocks etc. The difficulty is when you overextend and are unable to cover yourslef or your family during economic downturns.

The actor who played Chris was apparently an extra that they asked to play that role.

They worked it out in advance. Treating the guy that way makes Ryan’s character look more dominant, which helped with his presentation to his doubting audience.

Another aspect of it, you don’t gloat to the people you’re trying to fuck over. You do that after you leave the office.

Yup the screen writer is a genius

The way the “quant” starts fidgeting adjusting his glasses and moving his head with confusion as everyone looks at him. He sold it well. Fucking hilarious! “I’ll give you a hint…his name is YANG!” 😂😂😂

Once again people in the know are incentivized to ignore what is happening. House prices keep climbing as private companies buy them up to flip or rent. Mortgage defaults aren't going to be the fuse for the next collapse. It'll be the lack of people able to afford all of these properties that companies can no longer unload, the market plateaus, and they're forced to maintain properties at a loss or sell at a bigger loss. As the bubble starts to go it becomes more expensive to maintain than to sell, and companies will race each other to get rid of these properties. Add to that all the CDOs and synthetic CDOs that will quickly become worthless and we've got another collapse.

Im sure they knew. But too much opportunitt to make money kept them going. The ones responsible made a ahit ton of money. The regular joe got fucked. Same ol story.

@@erickbravo5800 I knew people who were flipping houses and making money. They just couldn't get their heads wrapped around the fact that house values would not keep going up forever. So those people were not Wallstreet types, but greed was still motivating them to keep going when it started to look shaky. I told one guy that it was getting close to the end, and he refused to listen. He lost some money on a big house had built, and I don't have any compassion for him, or others in the same boat. As for people who were buying those houses to live in 05, 06, 07, and before the crash in 08, they were just idiots. The folks who bought before that were not quite as stupid, but even they should have understood that they were paying overvalued prices for a house and should have thought that they would lose the price different if the market had a correction. I bought my house in 93 just after the FED lowered the prime rate. I rushed out to buy because I knew that house prices were going to start going up. We bought an old, beat up house, and we got low mortgage rates. It is all paid off, and still beat up. I'll fix it up someday, but having a beat up house that is paid off is worth much more than a slick one that has a mortgage.

@@foxfireman188-ls1kv It will be a soft landing if the properties are not mortgaged.

Bitcoin does.

One person, technically. And technically, that is an infinite improvement, lmao.

It's not illegal to take risks. Especially when the government is insuring everything.

In Law people like this don't get punished. Clearly. This is one of the many reasons that when examined, we will find that ultimately: Law *impedes* Justice.

@@LarsLarsen77 Depends. When financial advisors sell products, they have a fiduciary obligation to their clients to disclose known risks associated with those assets. If the advisors knew that the assets were risky, or that ratings agencies had given the bonds fraudulent ratings (which they often did, as shown later in this movie), then they're defrauding their clients. Taking risks isn't illegal. Misrepresenting those risks while acting as a fiduciary on behalf of your client very much is. Not an easy thing to prove in a criminal court though.

It’s capital punishment; if you have the capital, you don’t do the punishment.

Well, that's why they also want to make us addicted to lifestyles we can't afford so that we stop caring about our financial futures.

Boom bust boom

The crash doesn’t help first time buyers. When the housing market crashes it crashes the loan markets too, and it makes it impossible for first time buyers to get loans. The crash only helps the rich buy up more properties because they don’t have to borrow the money or have enough assets to borrow against.

​@@DavidSanchez-zq8fplol this scene is literally about this, guys with money making even more money off the crash

​@DavidSanchez-zq8fp Do you think this is why so many inner city properties are now in the hands of rich landlords instead of private owners compared to before? Existing rents are insane and getting worse. Seems to be a problem in every single medium to large city around the globe. Does it trace back to 2008?

@@DavidSanchez-zq8fp Bro you can buy a house for $20,000 when that happens. People with $20,000 in the bank are not rich.

@@LarsLarsen77 I’m not your bro, grow up. You can’t buy houses for $20K after a market crash. The house values drop sharply, maybe as much as 50%, but the value doesn’t go to nothing. If the average house in your market sell for $600K before the crash they will still cost $300K after, so yes, you have to be rich to have $300K in cash sitting in the bank.

He got HIllary'd

He defaulted

MAHNE. You smell MAHNE.

Actually its car loans this time.

@@LarsLarsen77 Commercial real estate is a $20 trillion market.

You only took the hit if you needed to sell or took out equity loans. If you stayed there how much is your house worth now?

only if you needed to sell. otherwise you made out when the taxes on the house went down

Only if you were a house flipper. If it was a long term investment, or where you planned to live it didn't matter. It's the same mistake people make in thinking about the stock market. As long as you own the asset, you haven't lost anything.

Thank you to all the commenters who proved my point that Americans to this day don't understand the 2008 Stock Market Crash. One uniquely American trait in the modern era is to see themselves as (A) the only one whose opinion and whose loss matters and (B) temporarily displaced billionaires, they show no interest or empathy of the average working man's plight. What the 2008 crash did was (1) raise interest rates on variable rate loans, (2) destroy 401(k) investments, and (3) close American factories. We lived near an IBM factory that shut down because of the downturn. It was crazy to see all the neighbors who just abandoned their houses. We were both facing being laid off and our 401(k) retirements were left pretty much useless, so we ended up doing a short sale and changing careers to keep from being homeless. We were professionals who I'd say were very comfortable, but we didn't come from money. Corporations got great bailouts. I went from a $100,000 career to starting a new career at $34,000. We're doing better, but my wife and I met almost every benchmark of people who'd be hit hardest by the 2008 Stock Market Crash.

350 back then, 3/4 mill right now.

he went way too soft on the government's role in legislating the crisis to happen in the first place.

What isnthe name of The film please

Margin Call was good human drama, this movie however does explanation really well, even at its own expense, director and script writers commiting to a bit. And it works. And it makes you way more angry because you realize someone got away with fraud and no one cared because it was good for "economy" for a while.

ive banked so much money expecting this to happen. I can probably buy 2 houses in full if everything crashed and houses short saled to 2009/2010 prices

After each crisis, there is a reform of the system. I.e. such a thing may happen, but for some other reason, if there is one. As far as I remember, they banned the approach where the company itself valued its own assets, as in this example. So no more passing off rotten fish as fresh fish and selling above its value.

@@Tony-. No, INDEPENDENT credit agencies valued their assets.

Look at it this way, there was a pandemic and the real estate market went up. People already expected this to happen again and because of 2008, a new market infiltrated every single major US market in the country. The Asian Market. And trust me, they will pay double or triple what you will pay on that house/apartment. And by doing so, increase the price of every single apartment/house in that general area. Incase you ever wondered how we got to paying as much for housing as we do.

It's 2024 and I'm just now realizing who he is in the future.

18 year cycle