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Alright, let's say... You have a pool of 50 million in sub-prime loans How much money could be out there betting on it In your synthetic CDO's and swaps?Right now! Tonight! 50 million.. Hmm.. A billion dollars What? If the mortgage-bonds thatMichael Burry discovered were the match... How much bigger is the market for insuringmortgage bonds than for actual mortgages? About twenty times! If the mortgage bonds were the match... Then the CDO's were the kerosene soaked rags. And the synthetic CDO was the atomic bomb with a drunk presidentholding his finger over the button It was at that momentin that dumb restaurant with that stupid look on his facethat Mark Baum realized The whole world economy might collapse!
Full Transcript
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Alright let's say
00:00:03.036 --> 00:00:06.088
You have a pool of 50 million in sub prime loans
00:00:07.006 --> 00:00:09.003
How much money could be out there betting on it
00:00:10.022 --> 00:00:13.094
In your synthetic CDO's and swaps Right now Tonight
00:00:14.056 --> 00:00:15.056
50 million Hmm
00:00:17.086 --> 00:00:19.000
A billion dollars
00:00:19.018 --> 00:00:19.084
What
00:00:21.012 --> 00:00:24.003
If the mortgage bonds that Michael Burry discovered were the match
00:00:25.076 --> 00:00:29.074
How much bigger is the market for insuring mortgage bonds than for actual mortgages
00:00:31.002 --> 00:00:32.001
About twenty times
00:00:32.028 --> 00:00:34.022
If the mortgage bonds were the match
00:00:34.056 --> 00:00:37.003
Then the CDO's were the kerosene soaked rags
00:00:37.014 --> 00:00:39.074
And the synthetic CDO was the atomic bomb
00:00:39.074 --> 00:00:42.026
with a drunk president holding his finger over the button
00:00:42.005 --> 00:00:44.086
It was at that moment in that dumb restaurant
00:00:44.086 --> 00:00:47.009
with that stupid look on his face that Mark Baum realized
00:00:48.999 --> 00:00:50.006
The whole world economy might collapse
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Movie Summary
The men who made millions from a global economic meltdown.