4 ms·

It's great that you recognize professional investing isn't something you know a lot about. It's a bit concerning that people believe a hollywood movie has taug

by floor2 6y ago

It's great that you recognize professional investing isn't something you know a lot about. It's a bit concerning that people believe a hollywood movie has taught them how the industry works. Keep in mind how hollywood portrays "hackers" or "scientists" or "Russians" or whatever group is an outsider or opposition to the protagonist and realize they're doing the same to finance.

stjohnswarts 6y ago
What they said is a basic property of humans who value money (object of value) over morals, it's hardly limited to wall street. Whether it's depicted in a hollywood flick or medieval morality play. It's as old as humanity
TuringNYC 6y ago
While clearly not all of Hollywood portrays the industry accurately, from my perspective the movie was incredibly reflective of the players in the space, and the dynamics. I worked in the mortgage/CDO/CDS industry for 10yrs during that period (2005-2015). If anything, the movie was too positive. There aren't as many players like Steve Carell's character who are worried about the world, they are usually worried about how to liquidate their book at the right time. The bit about getting marked the wrong way was especially spot on. Another very accurate movie: "Margin Call"
- pc86 6y ago
  > Another very accurate movie: "Margin Call" Jeremy Irons is fantastic in this film. The entire board room scene is amazing.
  - TuringNYC 6y ago
    The distinct personalities in the movie also perfectly represent the typical archetypes in these situations and firms.
  - harryh 6y ago
    One of my answers for "Best scene about a meeting in film" (a super fun question).
  - toomuchtodo 6y ago
    For those who haven't seen this masterpiece. https://www.youtube.com/watch?v=Hhy7JUinlu0 https://www.youtube.com/watch?v=Hhy7JUinlu0
- dakna 6y ago
  I recommend 3 movies to every family member willing to deal with financial topics as a form of edutainment. The Big Short and Margin Call are two of them. The 3rd one is 99 Homes. The key line is: "Don't get emotional about real estate." What is sold as a place for family memories for some, is just another asset class for others.
  - harryh 6y ago
    Too Big To Fail is also quite good and the third leg of my personal "Great Recession Trifecta." https://en.wikipedia.org/wiki/Too_Big_to_Fail_(film) https://en.wikipedia.org/wiki/Too_Big_to_Fail_(film)
ericmay 6y ago
Certainly the movie is a bit exaggerated, but I'm not sure what your exact point of contention is with that scenario? OTC or seldom traded securities may not operate in the same way that a highly traded stock like Apple does from a price standpoint. For a boutique security that is created for a customer, the price is whatever the market is willing to pay - but the discovery of that price can quite literally happen over the phone because in the market there might only be one customer and if you sell to them... that's the price! So assuming that Michael Burry (in this instance) actually had Goldman Sachs create a boutique security, price discovery may very well have happened over the phone in just such a manner. I don't know the details but I'm also not sure why you would think that this can't happen? Please feel free to educate me. I don't know much about professional investing either.
JoshuaLelon 6y ago
Related: Gell Mann Amnesia https://www.epsilontheory.com/gell-mann-amnesia/ https://www.epsilontheory.com/gell-mann-amnesia/
- 1123581321 6y ago
  This is sort of an inverse situation, as those with industry experience are recognizing truth in that scene and someone outside the industry is scoffing at it.
llampx 6y ago
He's right though. Most public-facing statements from big banks and trading firms can be taken with a heavy serving of salt. Many times they are either doing the opposite or telling their actual big whales to do the opposite. Bill Ackermann going on CNBC crying and causing people to panic sell stocks near the March 2020 lows comes to mind.
morpheos137 6y ago
Yeah we got the "Hollywood" effect to thank for the popular belief Elon Musk = Tony Stark too...

by floor2 6y ago

stjohnswarts 6y ago

What they said is a basic property of humans who value money (object of value) over morals, it's hardly limited to wall street. Whether it's depicted in a hollywood flick or medieval morality play. It's as old as humanity

TuringNYC 6y ago

While clearly not all of Hollywood portrays the industry accurately, from my perspective the movie was incredibly reflective of the players in the space, and the dynamics. I worked in the mortgage/CDO/CDS industry for 10yrs during that period (2005-2015). If anything, the movie was too positive. There aren't as many players like Steve Carell's character who are worried about the world, they are usually worried about how to liquidate their book at the right time. The bit about getting marked the wrong way was especially spot on. Another very accurate movie: "Margin Call"

pc86 6y ago
> Another very accurate movie: "Margin Call" Jeremy Irons is fantastic in this film. The entire board room scene is amazing.
- TuringNYC 6y ago
  The distinct personalities in the movie also perfectly represent the typical archetypes in these situations and firms.
- harryh 6y ago
  One of my answers for "Best scene about a meeting in film" (a super fun question).
- toomuchtodo 6y ago
  For those who haven't seen this masterpiece. https://www.youtube.com/watch?v=Hhy7JUinlu0 https://www.youtube.com/watch?v=Hhy7JUinlu0
dakna 6y ago
I recommend 3 movies to every family member willing to deal with financial topics as a form of edutainment. The Big Short and Margin Call are two of them. The 3rd one is 99 Homes. The key line is: "Don't get emotional about real estate." What is sold as a place for family memories for some, is just another asset class for others.
- harryh 6y ago
  Too Big To Fail is also quite good and the third leg of my personal "Great Recession Trifecta." https://en.wikipedia.org/wiki/Too_Big_to_Fail_(film) https://en.wikipedia.org/wiki/Too_Big_to_Fail_(film)

ericmay 6y ago

Certainly the movie is a bit exaggerated, but I'm not sure what your exact point of contention is with that scenario? OTC or seldom traded securities may not operate in the same way that a highly traded stock like Apple does from a price standpoint. For a boutique security that is created for a customer, the price is whatever the market is willing to pay - but the discovery of that price can quite literally happen over the phone because in the market there might only be one customer and if you sell to them... that's the price! So assuming that Michael Burry (in this instance) actually had Goldman Sachs create a boutique security, price discovery may very well have happened over the phone in just such a manner. I don't know the details but I'm also not sure why you would think that this can't happen? Please feel free to educate me. I don't know much about professional investing either.

JoshuaLelon 6y ago

Related: Gell Mann Amnesia https://www.epsilontheory.com/gell-mann-amnesia/ https://www.epsilontheory.com/gell-mann-amnesia/

1123581321 6y ago
This is sort of an inverse situation, as those with industry experience are recognizing truth in that scene and someone outside the industry is scoffing at it.

llampx 6y ago

He's right though. Most public-facing statements from big banks and trading firms can be taken with a heavy serving of salt. Many times they are either doing the opposite or telling their actual big whales to do the opposite. Bill Ackermann going on CNBC crying and causing people to panic sell stocks near the March 2020 lows comes to mind.

morpheos137 6y ago

Yeah we got the "Hollywood" effect to thank for the popular belief Elon Musk = Tony Stark too...