Reflection of ‘The Big Short’ Movie

‘The Big Short’ movie is a reflection of the collapse of Wall Street. It is based on the financial crisis of 2008 that left a lot of Americans homeless and unemployed.

The movie is basically a determined endeavor to reflect upon the story of crucial players in the GFC – Great Financial Crisis. The issues were exacerbated by unethical behavior leading to disastrous outcomes. One shorting is not wrong in comparison to another, i.e., the ratings by S&P as unethical were indicated by two acts spotlighted in the movie. Shorting or short selling perceived as negative historically. Some also view them as betting against the home people. With the increases in default rate, money was made Shipley and Geller, however, they were not the major reasons behind. In actual, the crash in prices was forecasted by them, and through this prediction, they acted to profit. Their act of shorting was unethical.

Secondly, Burry in the movie considered a huge amount of risk and luckily paid his premiums. However, he was not completely transparent and honest with the investors, which reflects upon his unethical behavior. Third, S&P was interviewed by Vinny Daniel and Mark Baum. Millions of dollars were gained by the banks and the S&P which result in leaving a lot of individuals jobless and homeless. This the act of providing wrong high ratings to low-quality securities just in order to acquire personal profit was an unethical act by S&P. Fifth, S&P also emerged involved in unethical behavior as a Kantian duty based framework was used by it for examination of the rating issues.

The ‘Big Short’ movie is the one which converted a dark phase like ‘The Great recession’ into a comedy one. It makes one wonder was the crises led by the risky behavior shown by the Wall Street and whether such crisis can take place again. From the above information, we learnt that the crisis was led by the unethical behavior. We must take precautions to avoid such unethical behavior happening from again so that such crisis can be avoided later. Provided the inherent constraints reflected by the movie, a great job has been especially with respect to highlighting the ethical issues in the GFC. Although Wall Street has been shown as an evil organization consistently by the movie, however, one must know that Wall Street comprises of individuals and more individual integrity and ethical behavior must have been shown by the movie. Overall, the movie encouraged individuals to consider ethics with respect to finance.