LogFAQs > #975008006

LurkerFAQs, Active DB, DB1, DB2, DB3, DB4, DB5, DB6, DB7, DB8, DB9, DB10, DB11, Database 12 ( 11.2023-? ), Clear

Topic List	Page List: 1
Topic	Watched The Big Short yesterday. Entertaining movie but
PraetorXyn 07/22/23 9:36:28 PM #5:	littlebro07 posted... How the fuck does any of this stuff work Even when they did the funny fourth wall breaking laymans terms explanation of things I was still like wat I even work in the finance world and have for two years and still dont really get shit like options and shorting. Like it makes sense that I have $500, I can buy 10 shares of this $50 stock, and then it either goes up or down in value. Thats easy enough. All the other stuff is like a foreign language. The movie explained it as a short is like a reverse stock basically. Where if the stock value you goes up, you lose money, and if it drops, you gain money. Youre essentially betting on something (in this case the housing market) to fail. The big banks gleefully accepted what they saw as losing nets, then when they figured out they were about to lose badly, they bribed the rating agency to rate shit mortgage bundles AAA so they could offload them to other banks. --- Console war in a nutshell: http://imgur.com/xA6GJZ9.png <cite>PraetorXyn posted [p:975008006] in Watched Th... [t:80516487]...</cite> <quote>littlebro07 posted... </cite><quote>How the fuck does any of this stuff work Even when they did the funny fourth wall breaking laymans terms explanation of things I was still like wat I even work in the finance world and have for two years and still dont really get shit like options and shorting. Like it makes sense that I have $500, I can buy 10 shares of this $50 stock, and then it either goes up or down in value. Thats easy enough. All the other stuff is like a foreign language.</quote>The movie explained it as a short is like a reverse stock basically. Where if the stock value you goes up, you lose money, and if it drops, you gain money. Youre essentially betting on something (in this case the housing market) to fail.The big banks gleefully accepted what they saw as losing nets, then when they figured out they were about to lose badly, they bribed the rating agency to rate shit mortgage bundles AAA so they could offload them to other banks. --- Console war in a nutshell:http://imgur.com/xA6GJZ9.png</quote> ... Copied to Clipboard!
Topic List	Page List: 1