The Big Short Delivers

The movie version of the Big Short exceeded my expectations.  It made mortgage-backed-securities not only interesting, but funny.  Steve Carell’s acting was genius, as was Christian Bale’s—go see it.  It’s based on Michael Lewis’s (Liar’s Poker) biopic of the people who saw the housing bubble, and shorted the market.  It nails the revolving door relationship between the SEC and the banks, the sad red-light district of the credit-ratings agencies of Moody’s, S&P, etc.  It also highlights what was known (or could have been known) and how the big banks artificially refused to properly mark the markets (in credit default swaps, MBS, and CDOs) until they could do their best to unload their own positions.

We’ve been covering these stories since 2009, and what needs to be covered is the sequel:  what happened to the homeowners affected by the foreclosures?  Was there justice?  How has our court system treated them?

But if you liked the movie, the Big Short, you might like to know more:

Taibbi hammers Goldman

In the Wake of SEC v. Goldman

Barry Ritzholtz on Media Mistreatment of SEC v. Goldman

Securitization Trustee US Bank, NA Disclaims Responsibility

Ex-SEC Attorney Exposes Cover-Up

Goldman Sachs Sells Triple Housing-Backed AAAs While Shorting Same

Goldman, oh Goldman

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