Just Finished Watching The Big Short

Great movie. Gotta say, it’s pretty infuriating. And, as if we already forgot, the same cycle that keeps happening every 10-15 years is starting again just recently in 2015. Instead of a “credit default obligation” or CDO they are calling it a “bespoke tranche opportunity.” We really just don’t learn, do we?¬†

Bankers are always looking for a new fancy investment gimmick that can make them a bunch of money at the expense of the masses. I’ll be keeping a close eye on this development.


UPDATE 2016-07-25: I was actually lucky enough recently to meet the real person behind this movie,¬†Steve Eisman, (played by Steve Carrell). I asked him about “bespoke tranche opportunities.” He said they are a non-event. They are not anywhere near as threatening as the ending of the movie implies. And he also said, as cynical as he is about the banks, he thinks history is not on track to repeat itself in the near future. Was refreshing to hear from the guy who foresaw the financial meltdown of 2008.

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