Margin Call (4/9) Movie CLIP - Be First, Be Smarter or Cheat (2011) HD
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- čas přidán 13. 01. 2014
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CLIP DESCRIPTION:
John Tuld (Jeremy Irons) explains his firm's philosophy to his employees while maneuvering around Sam Rogers (Kevin Spacey) and his moral principles.
FILM DESCRIPTION:
Investment-firm analyst Peter Sullivan (Zachary Quinto) uncovers sensitive information that could easily plunge the entire business into peril, inadvertently destroying the lives and careers of his colleagues in this tense thriller set during the onset of the 2008 financial crisis. Over the course of the next 24 hours, Sullivan realizes that the decisions he makes will not only affect the employees of the firm, but the lives of everyday Americans from coast to coast as well. Kevin Spacey, Jeremy Irons, Stanley Tucci, Demi Moore, and Paul Bettany co-star.
CREDITS:
TM & © Lionsgate (2011)
Cast: Kevin Spacey, Paul Bettany, Jeremy Irons, Zachary Quinto, Penn Badgley, Simon Baker, Demi Moore, Aasif Mandvi
Director: J.C. Chandor
Producers: Sean Akers, Robert Ogden Barnum, Michael Benaroya, Joshua Blum, Kirk D'Amico, Neal Dodson, Cassian Elwes, Rose Ganguzza, Anna Gerb, Daniel Hendler, Joe Jenckes, Lawrence M. Kopeikin, Susan Leber, Randy Manis, Corey Moosa, Zachary Quinto, Laura Rister
Screenwriter: J.C. Chandor
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"So that we may survive". That line is scary. I have never seen a better portrayal of a typical CEO from the 2000's.
His "survival instinct" masks his amoral greed. Based on Lehman CEO Fuld, although the actions of this firm are not equivalent to the actions of Lehman.
@@chriscarlson516I mean, sure but try telling that to hundreds if not thousands of people who immediately lose their jobs if their company and board room don’t decide to try to survive…
Edit: Sorry I’m not trying to pick a fight, it’s just easy to hate the boardroom and forget they have thousands of livelihoods hanging on their every decision. That’s why it’s such a gray area.
@@absenttk4213 this is one place where the film was a bit inauthentic. The market was going to crash anyway, no matter what they did. The only choice involved was to wait for someone else to move first and go down along with the market or to move first and survive. The market would be dead either way. That's the import of "this has already happened" and "I don't hear a thing", in the same scene. It's already over. The ship is going to sink. They can't change that. All they can do is get off first.
Jeremy Irons and Kevin Spacey. Well, here you have a lesson of acting to the square. That very line of “do you?” of Irons is simply pure solid gold.
I could have used a bit more of that. like if he said it a few more times, while slamming his hand on the table.
You know if you watch this and then The Big Short, it actually gives you a pretty good insight on how the 2007-08 financial crisis happened from both sides.
I was thinking that 2
Agreed Joseph. I was totally locked in watching this.
Joseph Dutra Definitely Bro.
And Too Big To Fail, that's from the government's perspective.
@@onwun4292 That's a good one too.
"So that WE. MAY.. surVIVE... " When Scar hits wallstreet
Be prepared
Yeah. I got chills when he said that.
Tuld: "Be prePRARED!!!" 🎵🎶
Right before scar threw mofasa. Down the trench he said this it im telling you this is it 😆 😆
An shining new era is tiptoeing nearer!!!
This movie was probably one of the most accurate, less biased portrayals of the atmosphere and what was going down at the time ...
AileronTrading
As far as the financial crisis goes: TOO BIG TO FAIL was considerably better.
After the first board room scene, Margin Call runs out of steam.
This movie talks in generalities in order to avoid being sued by the companies they are depicting - specifically Bear Sterns/ Lehman.
Too Big To Fail is historically accurate when you take out the dramatizations.
+bigtruckseriesreview They use generalities because if they didn't, nobody would know what the fuck they were talking about. They used the word security, assets, and market volatility and already everybody watching with me was clueless. If people don't understand the simplest investing terms, what's the point of bringing in Bear Sterns/ Lehman? Is it just to name drop?
This movie was obviously about Dick Fuld over at Lehman Brothers. The film tries to talk it generalities about the coming credit crisis and tries to talk in general at ease about the packaging of mortgage securities which led to that crisis. If you saw the movie Too Big to Fail there is a short section where the credit crisis is perfectly explained without using any generalities whatsoever.
I don't know how it could be talking about Lehman or Bear Stearns. This firm, if memory servers from the entire movie ... survives. They get most of it sold off. Heck, BoA survived, and they were suffering write-downs ( _since no one was going to touch that junk_ ) for like a year afterward. I'm not sure if anyone was able to 'sell it all'. If so, they would have survived. Which ... Bear and Lehman definitely didn't.
Dick Fuld tried desperately to dump the shares that he realized or dragging the company down but no one would buy them.
The same thing happened at Bear Sterns.
This film is basically trying to explain that mortgages were packaged into securities but at a certain point those security started to decline in value because of speculation and that there were investment companies who quickly sold off those dodgy debts spreading the danger around the world.
Old men like Irons's character scare the shit out of me.
Why is age relevant?
With that commanding voice, who wouldn't?
@@trevorleeoakley7434 Shut up, clown. Stop looking for something to be offended by.
Kevin Spacey and Jeremy Irons, wow! Two giants sparring. Good stuff!
Demi Moore😱
Pure solid gold of acting
Everyone in this film was simply outstanding. Spacey and Irons in particular were Oscar-worthy.
Goldman Sachs front running the other banks to divest the Archegos/Bill Hwang assets immediately reminded me of this. History doesn't repeat itself but it does rhyme.
I too rewatched this after Archego event.
"Where is this gonna come back to us?"
At first I thought Kevin Spacey's character made sense when he said "Everywhere" but then later on I realize Jeremy Iron's character already knew that thats not likely going to happen because the "music is going to stop" and not many of the people in wall street will survive the impending crisis.
Every actor is fantastic in this criminally underrated film but Jeremy Irons owns the show. His entire performance is such a marevlously controlled thing. He's an angry shark rearing for his next kill but he puts on this relaxed, charming persona and only once (in this scene alone) cracks to show the stress he's under. Irons knows the game him and the rest of all of wall street had been playing is done. It's implied he's personally known full well for years the market will inevitably crash. But he doesn't care. Not really. He'll throw fellow employees under the bus. He'll cripple the market. He'll crash the economy. He's a hungry shark and he's willing to wipe out his unseen competitors to keep his party going. Be first, be smarter or cheat. Irons was damn lucky to be first and he and his unnamed company are incredibly smart but being willing to cheat (despite immediately denying that he ever would cheat) is what saves him and dooms the rest of us to economic hell. Jeremy Irons never once turns this into camp villiany. He plays it in a showy manner yes, but Irons is a subtle enough actor to let the real life knowledge do the work and simply plays it as it's brilliantly written.
Trent you perfectly explain that, the synopsis of this movie. It's one of my favorite movies of the decade. And Jeremy Irons was on fire. Irons owned that character he played. I think this is one of the very very few movies that was so perfectly casted. Even the dim lighting/cinematography was a predication of what was about to happen.
You are on crack if you think this was a good "performance". Irons gives the perception that he is unsure about what he's about to do, then at the end is so sure of himself, he berates the guy who is going to do it for him? Weak sauce.
I liked this movie, but most actors put on a piss poor performance.
@@drowssapma I think he's testing his employees to see which ones will need to be fired. The fact that he showed up for this dead-of-the-night meeting illustrates that he knows how serious this is, and he likely figured out what to do by the start of the meeting
@@drowssapma Is that a problem of Irons or a problem of writing? I'll have to rewatch the movie, because it could be they're using the dialogue to keep the viewer in the loop on what's happening.
@@drowssapma actually...when you live with real life people and work alongside those like Iron's character, this is EXACTLY how they behave. Jovial, likeable, cajoling, and then instantly controlling the moment they sense momentum not in their favor. THIS IS BRILLIANTLY EXEMPLIFIED HERE.
This scene is like an acting masterclass
I think maybe Irons is overacting just a small tad, but it has entertainment value. Might prevent some people from falling asleep too.
@@shingnosis please timestamp i am begging you
I love how the "Do you?" line completely backfires on Rogers wwhen he tries it on Tuld lmao
Good god, Jeremy Irons is just simply perfect when it comes to playing bosses, CEOs etc.
Scar Was awesome! Long live the king!
bosses, CEOs, and also evil villains (Die Hard with a Vengeance). But I guess they are the same character.
Irons was excellent in this
Irons and Spacey both; this was Spacey's best role in a long time. And give credit to Quinto too. Heck, even Demi Moore is serviceable here.
+CliffordtheOrangeCat The casting overall was just great. These are the type of actors you want in these roles. They nailed it.
Agreed, agreed, agreed. This is one of my favorite movies in the past decade. Irons was perfect.
Watch "Barbarians at the gate". He is even better playing Henry Kravis.
Jeremy irons is the greatest actor.
This movie doesn't get the love it deserves, I've watched it a dozen times, it's a masterpiece!
The voices are so quiet I had to crank up my volume to max then that stpid outro rolled out killing my eardrums. wtf is wrong with this channel?
I thought only I felt that.
@@vivek18frd this is the same outro they use for every clip of every movie. They probably don't have time to tweak its audio level for each clip.
Gotta wonder how much more emotion and grit Jeremy Irons puts into that last line. That's a line that isn't just repeated. I love how rough and cutthroat Jeremy's character comes off!!! That's talent right there.
this was the meeting they had when gme stock was on rising
They haven't had this meeting yet
@@nova_kane they have this meeting daily now lmao
a meeting at Reddit
A movie with no violence, but can be classified as "terror"
Correct, once you think in the implications of their decisions.
A detail I really like is that he never opens or even looks at the paper. Having presented some pretty complex stuff in this industry that's very true, the higher up you go the more everyone just relies on the information and summarise that they're given
I was waiting for him to come from "You will never sell anything to any of those people ever again." With "Of course not they will be bankrupt what would they buy anything with?"
Jeremy Irons is brilliant in this scene and steals the movie. Jared is a sniper--"Sell it all. Today." Don't hesitate, take the shot. Irons is a pure commander. When Irons says, "This is it. I'm telling you, this is it!" he is dead-on accurate and sees what Jared sees, completely--survival is victory.
Jared doesn't get enough credit from what I've seen in commentary, glad you said that. That line and it's delivery made the movie for me. So cold.
I tend to take the interpretation that Irons' character already knew he had to sell it all, today, and basically waited for Jared or whoever else to say it. Jared jumps on the opportunity b/c he's a killer. But there's a reason they included the scene where Jared starts telling Irons' character about the details and Irons' character shuts him down -- it was to establish he didn't actually value what Jared had to say. At least, that's my take.
@@jpentw11 I saw it the same way, Irons' was fishing for whoever would catch on
In an earlier scene, Jared says, "I understand". Sam replies, "do you?" and Jared quietly says, "yes." Then this scene is a contrast: Tuld says, "I understand". Sam replies, "do you?" (just like before) but this time, he gets an intense response. "Do YOU? This is it. I'm telling you, this is it!" There is a reason Tuld is CEO and Jared is reporting to him.
@@jpentw11Yes, I wonder whether Jared purposely started with that mumbo jumbo so that Tuld could jump in and let Sullivan explain the problem. This way it seems like it’s the analyst exposing the problem - others can avoid putting themselves on the firing line.
"We're selling to willing buyers at the current fair market price" That's the true essence of Capitalism.
I love how Tuld says "be first, be smarter or cheat" and he doesn't cheat. Yet as Rogers says, you're selling something you know is worthless -- at a price that nobody would pay if they knew the true value. I'd say that's cheating.
@@sueprice3315 yeah, at first he says he does not cheat and then professes to do what he said he wouldn't.
You can’t be this thick? It’s simply their opinion based on their own firms modelling which may or may not turn out to be correct.
@George Hanks There's a fine line between cheating and being smart in the financial market. "Be first, be smart and cheat" are essentially the same thing. The whole financial market in certain degree is fraud, however ppl like John Tuld always justifies his behavior and be fine with it.
@@sueprice3315 in a way, i like to agree with you. But not telling te whole truth, is not cheating
If I were in a meeting with the corporation, and I see the CEO as someone like Jeremy Irons entering the room and addressing me, I would soil myself.
Badge Man YES!!!!!
“We are selling to willing buyers at the current Fair Market Price, so that WE may SURVIVE!”
You can feel a years worth of control in this film in every interaction between higher ups. They all knew.
That little cut to Robertson reacting in shock when Rogers says, "Word's gonna be out," at 1:25. She knew the whole time and arguably was the instigator for why the firm was in this mess to begin with.
As en employee I guess this is one of the best CEO's you could hope for, in the financial sector.. At least he's honest with you, with regards to your own situation.
Sooooo That We Maaayyy Suuurrrrvive ! - Jeremey Irons is on top of his game here.
2:12 Scar! lol
"DO YOU !!!"
awesome scene
Irons character probably couldn't make sense of one of the traders charts to save his life...and he doesn't have to. He understands the psychology of markets and people. Surrounding himself with very smart people, his big strength is knowing when to get out of the market, no matter the cost and more importantly he understands he has more hours to escape the horrors of a market that will devastate millions for years. Leadership
Everyone was doing it. He had hired (and mistakenly fired) the talent that could smell the end. Then he had the moxie to sit on the only chair as the music slowed to a halt. Call him a sociopath and misjudge him, but he saved his company and all those employees. And, he gets it about money. It's just paper. Economies correct and in spite of the loss of confidence, it's incredibly unlikely that people will suffer mass starvation over massive financial corrections.
When you realize that he means that he condones all 3 ways,but personally prefers to be first. 😮😮
Iron killed it!
I love watching Jeremy Irons and Kevin Spacey go at it.
Irons: Ramesh, how should we proceed with the trade?
Ramesh: GooOOOooo
Good to see Mr. Aziz become successful after a small pizza shop. GoooOOOooo Ramesh
What a gem. Why I missed this masterpiece for a long time.
Everyone talking about Irons's performance. But I tell you, the guy playing Ramesh at 1:36 .... that is Oscar-caliber line delivery right there. " They can slow you down " ... the way he says it. Gripping.
Naaa...the real Oscar goes to Carmello with his responses to tuld.
His "Sir" and "It's done"...chilling
@@ennabennab8061 how did I miss this :(
@@daweller look for the moment after this conversation where they speak about Eric Dale and Tuld trying to catch him up to get rid of the loose end
@@ennabennab8061 - I mean, it IS Mikey Palmice. He gets stuff done.
Whenever someone asks me how to get something done I always say "There are 3 ways. Be smarter, be first, or cheat."
i agree. these words outweigh anything you'll hear getting your mba.
its funny he says that as if their fire sale wasn't unjust and cheating in its own right
I love how everyone timidly approaches and respects to Iron except Spacey
I like how in this instance of Spacey asking “do you understand” he gets a rebuttal of “do you” from Irons.
Basically there’s only one lifejacket and they have to decide if they use it or give it to someone else
This movie is a Masterpiece for anyone who wants to learn acting. Every scene is full of expressions & story telling. Most people might not even understand the technicalities of stock markets & fortune 500 companies but actors in this movie made it so simple for everyone to understand the core reality of the business.
Fuck me, this scene is good.
Outstanding performance by everyone, I love Jeremy Irons, Although when he says "So we may survive" sounds pretty much like Scar.
Awesome scene. Imagine actually being at the table knowing the dominoes were about to fall.
“I don’t cheat……….sell all this worthless stuff today.”
"Sam, I don't think that you understand what your boy here just said." It means the data shows that everyone holding onto the tranches will exceed their market capitalization and will go bankrupt, all their employees sacked and new players who weren't involved in the bloodbath come in as replacements.
Just a bunch of suits around a table yet it's one of the most gripping scenes I know. Jeremy Irons is compelling, as is everyone around him. So this is how a Financial Crash begins.
There are three ways to make a living in this business: be first; be smarter; or cheat. Now, I don't cheat. And although I like to think we have some pretty smart people in this building, it sure is a hell of a lot easier to just be first.
Has that wonderful combination of a strong cast and beautifully written. Whilst the 4am meeting was the centrepiece, just loved Eric Dale's redundancy session and later trying to get him back - gripping, masterful and leaves with little doubt, that's exactly how it would be in the all powerful, high stakes world of trading.
Jeremy Irons deserves more recognition
I am a Fan of these actors and actresses. I work on Wall Street. “Blue Horseshoe Loves Anicott Steel!” “Pay it Forward.” Jonny Weiss “Back to Phoenix.” 🎶
Jermey Irons is kinda presented as the ruthless villain in this movie, which he is in a way. What he does is undebately an evil act towards his customers, (drowning the maket/selling 1B crap swaps). But he does it to protect the firm, what's left of his employees (more than half the floor been previously wiped out by the just starting 07-08 slowdown). It's what distinguish him from other villains in the he world of finance like Madoff, who are just cheat. This is why guys like him survives crisis, he is not a fraud and most important he is not lying to himself or his team about the situation, he hates to fire his top-dogs employees but does it out of necessity by personally confronting them, true leader.
Peter Thiel gave that very speech 24 hours ago. Silicon Valley Bank is now a smoldering pile of ruins.
Interesting that selling utterly worthless crap, duping everyone, is not considered “cheating.” It really is!
I hope movies as good as this one will be made about the economic fallout of COVID-19
There's an economic fallout? Where do you live?
@@daakudaddy5453 I was referring to two things for the most part: the extreme unprecedented measures by central banks of lowering the key interest rate to 0% (or even going negative) coupled with unabating QE, and the fact that small business owners (e.g. restaurant or bar owners) have seen their business go bankrupt due to the lockdowns. While wealthier people have profited from asset inflation, others have permanently lost their jobs and are struggling. And this isn't even over yet. QE will continue indefinitely, and sovereign debt is ballooning.
God…Jeremy Irons is the Boss. His acting is beyond extraordinary…
This is like an Aaron Sorkin film that wasn't written by Aaron Sorkin.
+Joseph Dutra Personally, I found the screenplay closer to the works of David Mamet than Aaron Sorkin.
+Peter Frank Lol yeah so much tension and ill will between characters like in Glengarry Glen Ross
Yeah I see what you mean.
Nah...He couldn't handle the truth!😨
and thank god it wasn't
"Survive" here meant continue being Rich AF.
The point is, in that room, they took control over the world , give or take.
the eyebrow raise by paul bettany at 0:37 is like "gonna be f-ing expensive"
SELL IT ALL, TODAY!
And that's why he was the XO.
this is a great scene.
Irons: THIS IS IT. THIS IS IT!!
Video outro music: YES SIR! COMING RIGHT UP SIR!
"I don't cheat"
No but there ought to be a rule...
I've watched this scene 20 or 30 times.....Irons is mesmerizing
Love this movie. No pretending
CEO wants to sell all stocks to the willing buyers in order to keep firm to sustain in the market; whereas Kevin being ethical to business knows that the stock gone fall down and buyers will never ever rely upon the organisation and potentially kill the market for years. CEO John doesn't even cares about the firm’s impression to the trading market for the upcoming years. His main intention is to survive and keep the music rolling. In contrary Kevin who is the head of the trading understands that its being unethical to cheat the buyers and would have undesired impact for the organisation that would last for years. CEO in terms is putting the firm’s goodwill at stake against business survival where as John is more worried about the fact between lunch times all buyers will come to know of the truth and everything will be into lime light.
if they dont sell , when the housing price goes down , their MBS fixed income assets will go down . As that young guy explained , if their asset price goes down to 25% , they will go bankrupt . Same as Goldman , they sold most of their MBS before the rest of the market know that these things have no value
Its not as simple as stocks, Its MBS, CDOs , options on these stuff also swaps and 100 of other pre packaged shit.
@@88norimaki In 2008 I was a teenager. But now that I look back it honestly doesn't take a rocket scientist to understand.
The firm has $100 in equity. The firm borrows $100 more. Uses $50 To buy more stock. $50 is a buffer so they don't hit margin call. They diversify so that they can spread risk and afford to buy $20 more stock. Now $30 is the buffer. For every dollar they make, they take 80% more loan and use 5% to cover interest payments on the loan. When the market starts to go down as a whole, they hit margin calls more often. If the market goes down permanently more than 15% and they don't sell, and the bank asks for more collateral (by end day). They don't have it, because their assets are all fully used as collateral already. So before they have to file for bankruptcy they launch a fire sale. Technically, they hire rocket scientists to tell them whether they are valuing their assets correctly so that a more than 15% drop will never happen. But when corruption is rife, you cannot value anything correctly without physically going through the books.
I'm not convinced Spacey's character is thinking about this in an ethical mindset. He's thinking about the cost both financial and reputation wise to the firm.
"Sell it all...today"....after standing mute earlier....now only willing to offer advice when it becomes obvious what the boss wants. Hate that guy!
J S that’s why he is COO... great acting in this movie
When the boss mentioned it was easier to be first, the subordinate knew that he had to make a suggestion first just to save his own neck.
@@MrAtullberg if you watch the whole movie, he had already come to that conclusion also. i think that is why jarred survives and Sarah gets the axe, because jarred knew what needed to be done, and Sarah was worrying about the blow back.
It wasn't advice. He understood that the whole conversation is leading up to Tuld telling them all to do that anyway, but it is a SCARY thing that they are doing in that room. And you see what Tuld is avoiding when he says to Sam in exasperation, "If I *made* you... how would you do it?"... Tuld does not want to force this upon them. So Jared pulls the trigger for him.
Something of this magnitude HAS to be a unilateral decision. If Tuld walks in that room and says "We sell it all today." it would be complete and utter chaos from then on out. So he plays the game to make sure that everyone at that table is working through the same logic. He, Jared, and Sarah already knew this was inevitable.
really good movie....terrible last shot as credits rolled...aside from that, a great depiction of the 2008 crash from behind closed doors.
long live the king
Tuld may not cheat now (doesn't need to), but you can be pretty sure he has in the past.
Irons is a heavyweight actor, no doubt about it.
He deserves more respect.
Jeremy irons perfect for that role
Its funny that he says he doesn't cheat but their fire sale was essentially cheating
I made a video about the line "be first, be smarter, or cheat" and how they do all three
Outstanding performance, but the CEO never did anything so awful as to require Jeremy Irons be cast in the part.
Michael Fuld, the real-life CEO of Goldman Sachs on whom Jeremy Irons' character is heavily based on, was/is FAR more awful than this.
Irons is a sweetheart in the film "race"
They knew the risk. And they bought it anyway. You get that bit when Demi Moore gets fired.
“I don’t cheat” says the person who wants to sell MBS products with access to insider knowledge on the performance of these assets
So much cool!
one of the GOAT movies
And they did it. And they kept their jobs and lived happily ever after.
Some survived like the risk analyst that found the problem and allowed the company to make it a loss instead of a bankruptcy but most others got sacked. Atleast in their part of the market because that market died.
Imagine being Kevin Spacey's boy.
Jeremy Irons ❤
Movieclips audio
During the video: *non existent*
During outro: *HELOOOOOOO VIETNAMMMMM*
When sam said they selling things they know have no values....isnt it actually things they believe have no value? What if their analysis were wrong and they end up selling valuable stuffs for cheap?
Bingo! Bright boy!
Option 1: sell off company, be investigated by FTC and SEC, become prosecuted of fraudulent selling toxic stock, go to jail
Option 2. Do nothing file for bankruptcy,
Get bailed out by government, save the company
there is matter of goodwill at stake by ceo.
He did 2 of those, cheat and be first
You’re truly clueless.
I don't have a clue what anyone is talking about in this film, but I love it.
Go to a economics university for 3 years and work for 1 year in the financial industry and maybe then you will
There is a bomb. The bomb is the 2008 economic collapse/housing market. This firm in complicit in setting this bomb as is everyone else.
The question they are debating is do you undergo the Herculean task of selling off your entire mortgage holdings, thereby setting off the bomb in a controlled manner, losing some money and ruining your reputation (as well as your employees). But giving your firm a chance to survive.
Or do you ignore the bomb, nibble around the edges and risk the possibility that it completely destroys Your company
2-year old comment, but I'll try my best to explain how I understand things.
A bond is financial instrument that has 2 parts: the principal (borrowed amount) + interest on the outstanding principal. A mortgage backed security is a like creating a single bond that has many different residential mortgages in it. Pretty sure you know what a mortgage is. So imagine a single bond that is made up of 1k mortgages. Say each mortgage was $100. The whole bond principal would be $100k. The interest part would be the payment you get from the people who own the houses for those mortgages. Eventually, they will also have to pay the principal back too. Say everyone pays an average of 7% interest. So if you buy the MBS/bond you should get $7k/year in interest.
Everything is fine as long as everyone pays their mortgages.
However, a lot of mortgages in were ARM. Adjustable Rate Mortgages. Essentially, the first period of mortgage payments were done at a very low interest rate. The second period of the mortgage was done at very very high interest rate. Many people qualified for the mortgage based on the ability for the house to main/increase in value - not the home owner's ability to make the payments. Some situations were NINJA. No Income, No Jobs. (this was talk about in the Big Short).
Some lenders felt if the initial borrowers couldn't pay, the value of the house to still be there or even more. It almost didn't matter. This sort of works out when you have only a few people who couldn't pay their mortgages. The neighbourhood home values don't change much. BUT, if 25-30-50% of the people in the neighbourhood couldn't pay, then the values of homes plummet.
This means the lenders are left with homes that have lost value PLUS most of those people can't afford to buy them anyways. So if no one is paying the interest on the mortgage, then the holder of the MBS doesn't get their monthly interest payment because that's where it comes from. If the MBS doesn't get its interest, its unlikely the owner of the MBS will get back anything close to the value of original loan. Maybe they'll get 65 cents on the dollar once they sell the houses.
Now the value of the MBS goes from $100K principal + 7% interest to $65k principal/value + 3% (they'll still get some interest payments from people who could actually afford their mortgage). Lets say the time period is 5 years. The value goes from $100k + 7% x 5years = $135k. The new value is $65k + 3% x 5 years = $80k.
This is all pretty rough with simple low number (not sure where you can get a $100k house even in 2007) but hopefully it makes sense. Essentially, people in the other firms still think they will get the $135k but the guys in the firm project its only $80k. The difference between $135-$80 = $55k x the number of MBS instruments. Multiply that across 10s of thousands of mortgages and the numbers become massive. Easily bigger than any financial firm.
Games Industry:
Be first: World of WarCraft
Be Smarter: Hi-Fi Rush
Or Cheat: Madden
Yo muchisi.aveces la he visto en ESPAÑÑL...ORQU LA AUITAN AHORA???
there are three ways to be happy in marriage : be first, be smarter or cheat
why does he stand up lol
earlier in the scene Iron's character asked those who spoke to stand and speak plainly
do you? 😂
yeah.... being the first in line is a hell lot easier eh scar?
"Now I don't cheat"
Proceed to accept cheat anyways.
I mean technically it's not cheating. They sold it all legally.
@@josephruben97 yeah they cheat in a legal way 🤣
MASTER PIECE
This is totally how I imagine Kennedy and Khrushchev during thee missile crisis with their table (EXCOMM and the like)
This firm needs Simba.
...SO WE MAY SURVIVE!!!!!!