The Big Short summary

Michael Fantom

The movie The Big Short is a film based on a group of investors who bet against the housing market before the 2008 financial crisis. The movie shows the greed and corruption that led to the crisis and raises several ethical and moral dilemmas.

The movie highlights the unethical practices of the banks, credit rating agencies, and the housing market. The financial industry was fueled by greed, and investors were more concerned with making profits than serving their client's interests. The banks created complex financial instruments that were difficult to understand, but they were given high ratings by credit rating agencies, deceiving investors into thinking that they were safe investments.

One of the ethical dilemmas depicted in the movie is the question of whether it is ethical to profit from the misfortunes of others. The investors in the movie bet against the housing market, knowing that millions of people would lose their homes and jobs if the market crashed. While their actions were legal, they raised questions about whether it was moral to make money from the suffering of others.

Another ethical dilemma in the movie is the responsibility of financial institutions to their clients. The movie shows how banks and other financial institutions sold risky investments to their clients without fully disclosing the risks involved. They prioritized their profits over the interests of their clients, which is not only unethical but also illegal.

The movie also raises questions about the role of government in regulating the financial industry. The government is shown as being complicit in the crisis, as they allowed banks and other financial institutions to engage in risky practices without proper oversight. The lack of regulation enabled the banks to create complex financial instruments that were difficult to understand and allowed them to take on excessive risk.

The movie also touches on the issue of accountability. The individuals and institutions responsible for the crisis were never held accountable for their actions. The bankers who created the toxic financial instruments received bonuses and were not punished for their roles in the crisis. This lack of accountability raises questions about whether the financial industry is too big to fail and whether there is a need for greater accountability and transparency.

In conclusion, The Big Short highlights the unethical and immoral practices of the financial industry that led to the 2008 financial crisis. The movie raises several ethical and moral dilemmas, including the responsibility of financial institutions to their clients, the role of government in regulating the industry, and the accountability of those responsible for the crisis. The movie serves as a reminder of the importance of ethical behavior in the financial industry and the need for greater accountability and transparency.