Reflection Paper on the Big Short movie
I will honestly tell you that I do not have really idea on what is going on on the movie. Yeah, you know I am a Computer Science student and I guess only Accountants or Banking people will really love the movie. But , I guess computer science is really involve on that movie, its just vey vague to me. However, as the movie goes by I slowly understand what is going on, why did they have this problem and would their predictions happen?
"The world banking is extremely boring" - Jared Vennett
Yeah, definitely because you are facing hundreds of papers, analyzing returns and scanning to thousands of accounts trying to check if there is something wrong. People will just insert money to their accounts and withdraw and literally that is how banking works, saving and protecting our money. But, the image of banking is very different in the movie.
So, the movie goes by, and they have found out a certain plan that change their banking world. It was Lewis Ranieri who invented a plan for mortgage-backed securities to ensure bigger profits with lower risks because that time everyone is paying their mortgages. But, their happiness is splashed out with a great dismay and problem when global financial crisis hit in 2008. But, before this scene, a small group of people have predicted this coming and bankers even if the market are not prepared for this. Banks have refused their ideas, plans and deals. There plans did not work out well. Now, it is a big slap to the people who ignore their prediction. A prediction that the market and the economy will collapsed and because many people are dependent to it, dependent to the earn and live, many people lost their jobs, lost their homes, eaten by hunger and live poorly. Trillions of money turned into ashes. The spin of the wheel damages millions of lives. Drenched in pain of loss and burned hopes. I was worried that time about their situation in the movie because they are trying to solve a national crisis. The small group of people in the movie especially Michael Burry, tried to investigate this problem and they have found out that bonds are not going down and that the whole system is fraudulent. The whole system is dishonest, luring out the people to bite and slipped. I guess an example to this is the subprime loans that Maggie Robbie define as a shit that adds more mortgages to their plans. That is what I have inferred about that people nowadays pull down other people by giving such clever choices to earn from them. People are suffering from debts and they will add other loans and another debts again. Debts will never pay debts. So, that is it they are now suffering devastation because indeed that the market which is like a bubble burst out.
The prediction that became a devastation change the investors and people's life. What do you think the reason why this happened? For me, I guess it is the lack of maintaning a foundation of data science. Yes, because we are talking money here and banking is under it. This is also where I have realized how data science and big data management is very important in finance or banking. For the reason that, for me, managing millions of accounts and release and returns of money really need a foundation of big statistical analysis that will reveal certain patterns and algorithms to be used to cure or solve the diseases of our economy's suffering. As our economy and market suffers a problem, we are infected of it too because we are dependent to our economy especially today where there are rapid sends and receives of data anywhere. One of the example is the emerging trends in technology where banking enters our daily life in technology where we can buy and pay anywhere we wanted to, like in malls, paying online, online shopping and a lot more. That is why banking have less problem in managing data today. Unlike before like what Jared Vennett and Michael Burry did in scanning the clients that they found out having fewer returns. However, to think that I will be engaging this life in the future, I really need to understand these things well because being bounded by technology opens you to hundreds of opportunities that maybe sometime hard to face and finish.
In the end, the characters in the movie move back to their lives and live like before but at this time they are more prone to suffer the poor life because of what happened. But, as seen in the movie, in 2015, the bigger banks are begin on selling that marks the start of the hope of their banking world. I guess they have solved it because of the amazing power of data science. Still Michael Burry is on wait to reveal the causes on how did he predict the happening.
Money has been part of our lives for the reason that the need of buying our needs getting higher. The need of investing is getting great today. I realized in the movie that our money must be used, saved and spend properly. Secure and know first if your money will be safe and will circulate when you invest it to certain bank or system. We also need to pay our debts with the banks, market and government because maybe our money are used to save others life or to save the community of our problem and it must be circulated in order to balance the economy. The Big Short movie is just the introduction of the greater world of banking and it warns that we must have a fair and acceptable system that no one must be tramped. I don't today if they are concern with the problems of the people refarding with poverty. I hope that people will realize how valuable money is and why it must be spend to good things not just good but also useful things that is vital to human living. Saved money to be saved.
