I want to buy swaps on mortgage bonds. A credit default swap that pays off if the...
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Michael Burry:
I want to buy swaps on mortgage bonds. A credit default swap that pays off if the underlying bond fails.
Goldman Sachs Sales Rep (Lucy):
You want to bet against the housing market?
Michael Burry:
Yes.
Goldman Sachs Quant (Deeb):
Why? Those bonds only fail if millions of Americans don't pay their mortgages. That's never happened in history. If you'll forgive me, Dr. Burry, it seems like a foolish investment.
Michael Burry:
Well, based on prevailing sentiment, the market, the banks and popular culture, yes, it's a foolish investment. But, everyone's wrong.
Goldman Sachs Sales Rep (Lucy):
This is Wall Street, Dr. Burry. If you offer us free money, we ARE going to take it...
Michael Burry:
[interrupts her]
My one concern is that when the bonds fail I want to be certain of payment in case of solvency issues with your bank.
Goldman Sachs Sales Rep (Lucy):
I'm sorry, are you for real? You want to bet against the housing market and you're worried WE won't pay YOU?
Goldman Sachs Quant (Deeb):
[confers, whispering with colleage, in a lengthy sidebar]
Dr. Burry, we could work out a pay-as-we-go structure that would pay out if the bonds fail. But it would also apply to your payments if the value of the mortgage bond goes up, You'd have to pay us monthly premiums.
Goldman Sachs Sales Rep (Lucy):
Is that acceptable, Dr. Burry?
Michael Burry:
Yes... yes. I have prospectuses on the six mortgage-backed securities I want to short.
Goldman Sachs Quant (Deeb):
[Lengthy silence as the Goldman reps scan and review the thick booklets]
Dr. Burry, these should be fine.
Goldman Sachs Sales Rep (Lucy):
We're prepared to sell you five million in credit default swaps on these mortgage bonds.
Michael Burry:
Could we make it a hundred million?
Transcript
00:00:01.000 --> 00:00:03.252
Wait wait I didn't know there were swaps on mortgages
00:00:03.335 --> 00:00:05.921
LAUGHS There are now We made it for him
00:00:06.999 --> 00:00:07.673
He must have gone off his Zoloft or something
00:00:07.757 --> 00:00:09.999
I don't know CHUCKLES
00:00:09.175 --> 00:00:10.926
Want to join No Just a second
00:00:11.998 --> 00:00:12.999
Oh
00:00:12.178 --> 00:00:13.596
DOUG Hey Jared
00:00:13.679 --> 00:00:15.139
Did you hear about the deal that Randall just did
00:00:15.222 --> 00:00:16.432
with some fund manager
00:00:16.515 --> 00:00:18.309
JARED Randall Bullshit
00:00:18.768 --> 00:00:20.608
He's a foot soldier I'm sure it's a shit deal
00:00:20.686 --> 00:00:21.937
No it's for real
00:00:23.147 --> 00:00:24.565
I told you we'd meet later
00:00:24.648 --> 00:00:27.001
Unfortunately it's in a place like this which I would never be
00:00:27.151 --> 00:00:29.082
I never hung out with these idiots after work ever
00:00:29.904 --> 00:00:31.697
I had fashion friends
00:00:32.114 --> 00:00:35.451
Apparently this guy wanted 200 mil in credit default swaps
Clip duration: 36 seconds
Views: 238
Timestamp in movie: 00h 23m 48s
Uploaded: 19 March, 2022
Genres: comedy, drama
Summary: The men who made millions from a global economic meltdown.
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