I watched the movie but since I’m not from an economics background, I didn’t understand it fully. Explain me the economics and the key terms of the movie that led to the big short.
I watched the movie but since I’m not from an economics background, I didn’t understand it fully. Explain me the economics and the key terms of the movie that led to the big short.
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Big banks wanted to make a lot of money giving out loans, but they got greedy and essentially lied to investors that some loans were safe when they were actually really at risk of defaulting (not being paid back). So then a housing bubble started to grow because banks kept giving out mortgages to anyone with a pulse. More and more of these loans started to default and then people realized what was happening.