1 00:00:03,711 --> 00:00:16,951 Visit www.Nexiabet.id Trusted Secure Online Gambling Agent 2 00:00:20,039 --> 00:00:31,667 New Member Bonus 500 Thousand 10 Million Cashback Parlay 3 00:00:46,200 --> 00:00:49,800 Based on a true story Sbobet Sportsbook roll 1.25% Maxbet Sportsbook rollout 1.5% 4 00:00:51,800 --> 00:00:55,240 It is not ignorance that brings you to trouble. Rolls Live Casino Sbobet 338A 1% Rollingan Casino Live Maxbet 1.2% 5 00:00:55,241 --> 00:00:58,800 But what you believe is right turns out to be wrong. Mark Twain BBM: 2BF23F1C LINE: NEXIABET 6 00:01:20,800 --> 00:01:23,240 Hi, Frank. How are your wives and children? Wechat: NEXIABET Whatsapp: +66944385708 7 00:01:23,240 --> 00:01:24,560 For you, I suggest 8 00:01:24,561 --> 00:01:28,320 securities and shares. Cigarettes? 9 00:01:28,320 --> 00:01:30,480 At the end of the 70s, banking was not 10 00:01:30,481 --> 00:01:33,000 work that makes a lot of money. 11 00:01:33,920 --> 00:01:35,678 That's just useless work. 12 00:01:35,679 --> 00:01:37,600 What about the Mets match? 13 00:01:37,601 --> 00:01:40,319 The contents are bad people. Only sell insurance or 14 00:01:40,320 --> 00:01:41,760 accounting. 15 00:01:41,760 --> 00:01:43,238 And if banking is boring, 16 00:01:43,239 --> 00:01:45,680 the department of securities is really useless. 17 00:01:46,520 --> 00:01:47,958 Everyone knows about securities. 18 00:01:47,959 --> 00:01:50,120 We give securities to children when they are 15 years old. 19 00:01:50,160 --> 00:01:52,200 Maybe when he is 30 years old he can get hundreds of dollars. 20 00:01:52,201 --> 00:01:53,600 Boring. 21 00:01:53,600 --> 00:01:55,478 That's how things are going up to when Lewis Ranieri enters 22 00:01:55,479 --> 00:01:56,520 Salomon Brothers. 23 00:02:02,480 --> 00:02:04,800 You might not know who he is, but he changed your life 24 00:02:04,801 --> 00:02:08,600 more than Michael Jordan, iPod and YouTube combined into one. 25 00:02:10,400 --> 00:02:12,240 All right, brothers and sisters! Let's make money! 26 00:02:12,241 --> 00:02:15,839 Let's make money! How? 27 00:02:15,840 --> 00:02:17,720 Lewis doesn't realize it, 28 00:02:17,720 --> 00:02:19,720 but he has changed the world of banking forever 29 00:02:19,721 --> 00:02:21,720 with one simple idea. 30 00:02:21,760 --> 00:02:27,240 The mortgage-backed security (Secured mortgage securities). Or with the brand selling MBS. 31 00:02:27,240 --> 00:02:29,160 You all have personal mortgages. 32 00:02:29,200 --> 00:02:30,680 Fixed interest rate, 30 years. 33 00:02:30,681 --> 00:02:34,000 Boring, safe, rewarding small, right? However, 34 00:02:35,320 --> 00:02:38,079 if you have a thousand pieces and combined together, 35 00:02:38,080 --> 00:02:41,720 suddenly the return increases but the risk remains small because, 36 00:02:41,720 --> 00:02:42,798 Guaranteed mortgage! 37 00:02:42,799 --> 00:02:44,280 And who doesn't pay the mortgage? 38 00:02:44,281 --> 00:02:46,719 What is the credit rating for this securities? 39 00:02:46,720 --> 00:02:50,120 Ladies and gentlemen, this securities, the rating is AAA. 40 00:02:50,120 --> 00:02:51,520 This is what is looking for Michigan pension funds. 41 00:02:51,521 --> 00:02:53,319 I will buy $ 20 million. 42 00:02:53,320 --> 00:02:54,920 Oh come on, a little excited. 43 00:02:54,920 --> 00:02:56,200 $ 25 million. 44 00:02:56,201 --> 00:02:57,919 Money comes like rain, 45 00:02:57,920 --> 00:03:00,959 and for the first time, 46 00:03:00,960 --> 00:03:02,560 47 00:03:02,560 --> 00:03:05,320 the bankers who originally went to the club personally now go to the stiptease club. 48 00:03:07,960 --> 00:03:11,320 Not long after that, stocks and savings are hardly taken into account. 49 00:03:11,320 --> 00:03:13,598 - They make $ 50, $ 100, $ 200 billion - Whoo! 50 00:03:13,599 --> 00:03:15,040 In the form of mortgage securities and 51 00:03:15,041 --> 00:03:17,560 dozens of other types of securities in a year. 52 00:03:25,840 --> 00:03:28,240 And America doesn't realize when the number one industry 53 00:03:28,241 --> 00:03:30,320 being a saturated industry. 54 00:03:33,960 --> 00:03:37,480 And one day, almost 30 years after that, in 2008, 55 00:03:38,680 --> 00:03:40,440 everything falls. 56 00:03:43,600 --> 00:03:46,440 March. Bear Stearns is in debt 57 00:03:46,440 --> 00:03:48,120 and the central bank has instructed its sales. 58 00:03:48,121 --> 00:03:51,279 This is called the worst financial crisis in modern times. 59 00:03:51,280 --> 00:03:55,639 Obviously this is the biggest financial disaster for decades in this country, 60 00:03:55,640 --> 00:03:58,760 and maybe the end of the American business era. 61 00:03:58,760 --> 00:04:01,118 Finally, the mortgage is guaranteed to be which is triggered by Lewis Ranieri 62 00:04:01,119 --> 00:04:02,920 turns into a monster 63 00:04:02,921 --> 00:04:05,240 subvert the entire world economy. 64 00:04:05,240 --> 00:04:07,278 And there are no experts or leaders or gossipers who can predict it. 65 00:04:07,279 --> 00:04:08,560 I think most of you don't know exactly what happened. 66 00:04:10,040 --> 00:04:13,520 Yeah, you repeat someone's words 67 00:04:13,520 --> 00:04:14,998 so you don't look stupid, but come on. 68 00:04:14,999 --> 00:04:16,400 Our financial institution is STRONG. 69 00:04:16,401 --> 00:04:18,840 But there are some people who see the signs of their arrival. 70 00:04:20,080 --> 00:04:22,599 When the whole world is partying, 71 00:04:22,600 --> 00:04:24,719 some outsiders and nerds can see what others don't see. 72 00:04:24,720 --> 00:04:28,079 Not me. I'm not a nerd. I'm pretty cool. 73 00:04:28,080 --> 00:04:31,719 But we will meet again. 74 00:04:31,720 --> 00:04:34,239 These outsiders see big lies at the heart of the economy. 75 00:04:34,240 --> 00:04:37,080 76 00:04:37,080 --> 00:04:38,560 And they see it by doing something 77 00:04:38,561 --> 00:04:41,360 that never occurred to by other losers. 78 00:04:42,320 --> 00:04:43,640 They pay attention. 79 00:04:56,480 --> 00:04:58,800 Throughout the 1930s, 80 00:05:00,400 --> 00:05:05,080 the property market collapses on a national scale 81 00:05:06,480 --> 00:05:08,679 by 80%. 82 00:05:08,680 --> 00:05:13,880 I mean, half of the debt mortgage is stuck. 83 00:05:13,880 --> 00:05:16,560 And, there are 84 00:05:17,680 --> 00:05:21,200 special characteristics, very visible. 85 00:05:24,080 --> 00:05:25,239 In short, 86 00:05:25,240 --> 00:05:28,840 one of the benchmarks 87 00:05:28,840 --> 00:05:30,240 increases significantly 88 00:05:30,280 --> 00:05:32,400 with complexity and embezzlement. 89 00:05:32,400 --> 00:05:36,360 And you know that number goes up? 90 00:05:39,680 --> 00:05:40,680 Whoo! 91 00:05:55,320 --> 00:05:57,320 Akus always feels 92 00:05:57,320 --> 00:05:59,440 more comfortable alone. 93 00:06:06,640 --> 00:06:11,280 I think it's because of my glass eyes. 94 00:06:13,720 --> 00:06:16,480 I lost my eyes when was sick in childhood. 95 00:06:20,800 --> 00:06:23,160 It creates a gap separates from others. 96 00:06:27,200 --> 00:06:29,639 And you know that number 97 00:06:29,640 --> 00:06:30,839 up? 98 00:06:30,840 --> 00:06:34,439 The highest darkening ratio _ since the 1930s. 99 00:06:34,440 --> 00:06:36,880 Hey, hey, it's okay. It is okay. 100 00:06:36,880 --> 00:06:39,920 No, I don't know that. 101 00:06:43,040 --> 00:06:47,360 In 1933, the fourth year of the Great Depression. 102 00:06:47,360 --> 00:06:49,120 We wash it then wear it again. 103 00:06:49,160 --> 00:06:51,200 You play great, kid. 104 00:06:51,200 --> 00:06:53,240 I even heard the coach say that. 105 00:06:54,360 --> 00:06:56,759 Can we just go home? 106 00:06:56,760 --> 00:07:00,999 Most social interactions are strange to me. 107 00:07:01,000 --> 00:07:04,599 Even when I try to praise, 108 00:07:04,600 --> 00:07:06,839 it becomes wrong. 109 00:07:06,840 --> 00:07:10,879 Your haircut is good. Do you do it yourself? 110 00:07:10,880 --> 00:07:12,640 What? 111 00:07:12,640 --> 00:07:15,120 No. No, I... 112 00:07:23,760 --> 00:07:25,600 Sorry. I just... 113 00:07:31,320 --> 00:07:32,598 I will continue. 114 00:07:32,599 --> 00:07:34,320 My wife tells me I have to share more. 115 00:07:34,321 --> 00:07:35,320 Mmm. 116 00:07:36,280 --> 00:07:38,200 - It seems healthy. - Yeah. 117 00:07:38,200 --> 00:07:39,200 Mmm-hmm. 118 00:07:48,680 --> 00:07:49,720 Uh... 119 00:07:50,920 --> 00:07:52,400 So am I accepted to work? 120 00:07:52,401 --> 00:07:54,720 I think I can help your finances. 121 00:07:56,160 --> 00:07:57,560 Yeah. 122 00:07:57,560 --> 00:07:59,200 Yeah, of course. Please. 123 00:08:01,920 --> 00:08:03,599 Your name... 124 00:08:03,600 --> 00:08:05,239 David. Nice. 125 00:08:05,240 --> 00:08:07,200 I think I'll find a table. 126 00:08:07,200 --> 00:08:09,760 Are there things that you want me to do as a start... 127 00:08:10,240 --> 00:08:11,240 Uh... 128 00:08:12,840 --> 00:08:14,240 Yeah. 129 00:08:14,240 --> 00:08:16,240 Later you can tell me. I will be back. 130 00:08:18,680 --> 00:08:23,319 Don't you think it's weird when, um, 131 00:08:23,320 --> 00:08:25,919 Tech Bubble Burst (Blast Bubble Technology Economy) in 2001 132 00:08:25,920 --> 00:08:28,760 and home sales in San Jose, 133 00:08:28,760 --> 00:08:30,960 and capital of technology companies in the world, 134 00:08:32,480 --> 00:08:34,360 the number goes up? 135 00:08:34,360 --> 00:08:35,440 Isn't that weird? 136 00:08:35,441 --> 00:08:36,519 Strange. 137 00:08:36,520 --> 00:08:39,200 We talk about property. The property is always stable. 138 00:08:39,200 --> 00:08:40,280 Low risk. Solid. 139 00:08:40,281 --> 00:08:42,359 That's how it is, yeah. 140 00:08:42,360 --> 00:08:44,199 I want you to find me 141 00:08:44,200 --> 00:08:47,439 sales of 20 securities best-selling mortgages. 142 00:08:47,440 --> 00:08:50,399 So you want to know what are the 20 best selling mortgage securities? 143 00:08:50,400 --> 00:08:56,119 No, no, I want to know each of these mortgages. 144 00:08:56,120 --> 00:08:59,160 Okay, aren't these mortgages made up of... 145 00:08:59,160 --> 00:09:00,720 Wait, aren't these mortgages made up of 146 00:09:00,721 --> 00:09:02,880 thousands of mortgages? 147 00:09:02,880 --> 00:09:04,320 Yeah. 148 00:09:08,360 --> 00:09:09,880 Immediately, Dr. Burry. 149 00:09:28,920 --> 00:09:33,320 I'm a friendly person. 150 00:09:33,320 --> 00:09:36,000 Ask anyone, I am fun to work with. 151 00:09:37,960 --> 00:09:42,960 But the second time my son screwed up, I... 152 00:09:42,960 --> 00:09:45,440 screaming at him just like my father did to me. 153 00:09:48,800 --> 00:09:51,600 I listen to the words that come out of my mouth and... 154 00:09:51,600 --> 00:09:54,360 Sorry I'm late! There are no taxis. 155 00:09:55,040 --> 00:09:56,080 Oh... 156 00:09:56,520 --> 00:09:58,879 Listen to this. 157 00:09:58,880 --> 00:10:01,640 Yesterday, I met a retail banker. 158 00:10:01,640 --> 00:10:04,120 I should suggest that invest some money, 159 00:10:04,121 --> 00:10:05,519 but vice versa 160 00:10:05,520 --> 00:10:08,519 I told him about sanctions for overdrafts 161 00:10:08,520 --> 00:10:11,560 and banks only allow customers issue 10-12 checks 162 00:10:11,560 --> 00:10:13,240 before the bank finally warns that they are doing overdrafts. 163 00:10:13,241 --> 00:10:16,959 And that person has already done it millions of times. 164 00:10:16,960 --> 00:10:18,799 I'm getting angry. 165 00:10:18,800 --> 00:10:22,279 I asked him, I looked his face and I said, 166 00:10:22,280 --> 00:10:24,599 "How can you sleep 167 00:10:24,600 --> 00:10:28,160 " when you know a lot the person you are losing? " 168 00:10:28,160 --> 00:10:29,920 And you know what he is doing? He is leaving. whatever. 169 00:10:29,921 --> 00:10:32,720 What happened? 170 00:10:32,720 --> 00:10:33,840 In the story who was wrong? Me? 171 00:10:33,841 --> 00:10:36,239 Or the bastard who left me? 172 00:10:36,240 --> 00:10:38,760 Isn't he guilty? You can't come late and boycott all sessions. 173 00:10:38,760 --> 00:10:40,120 174 00:10:40,121 --> 00:10:42,999 175 00:10:43,000 --> 00:10:46,200 176 00:10:46,200 --> 00:10:47,760 What do you mean? I did not boycott this meeting. 177 00:10:47,761 --> 00:10:48,960 Is that right? 178 00:10:48,960 --> 00:10:50,080 Yeah. 179 00:10:50,560 --> 00:10:51,838 What is your job? 180 00:10:51,839 --> 00:10:53,078 Related to commodities. 181 00:10:53,079 --> 00:10:54,480 Good luck with that. 182 00:10:54,481 --> 00:10:58,160 Mark, I know you are experiencing a deep loss. 183 00:10:58,160 --> 00:10:59,638 Maybe you want to talk about it. 184 00:10:59,639 --> 00:11:00,760 I didn't talk about that. 185 00:11:00,761 --> 00:11:02,239 Wait. 186 00:11:02,240 --> 00:11:03,679 Wait... 187 00:11:03,680 --> 00:11:07,439 Damn, I have to pick up this phone. Sorry Sorry. 188 00:11:07,440 --> 00:11:09,640 No... I don't care, Porter. 189 00:11:09,640 --> 00:11:11,318 This person's business is built by harming people. 190 00:11:11,319 --> 00:11:12,920 How long will it last? 191 00:11:14,360 --> 00:11:15,560 See you all! 192 00:11:16,600 --> 00:11:18,560 95... 193 00:11:18,560 --> 00:11:20,640 30 days late... 60 days... 194 00:11:23,120 --> 00:11:25,680 Timely payments... 195 00:11:28,480 --> 00:11:30,120 This FICO number... 196 00:11:36,720 --> 00:11:38,918 Too late. They can pay but it's too late... 197 00:11:38,919 --> 00:11:40,520 30 days late others... 198 00:11:40,521 --> 00:11:43,880 LTV, 95... LTV, 90... They can pay but it's too late... 199 00:11:43,880 --> 00:11:45,478 Delay 60 days? Gosh! 200 00:11:45,479 --> 00:11:47,678 LTV, 110? Things like I never heard before! 201 00:11:47,679 --> 00:11:49,000 Delay 30 days, interest rate adjustment... 202 00:11:50,040 --> 00:11:51,358 In 2007 interest adjustments... 203 00:11:51,359 --> 00:11:52,640 In 2006 interest adjustments... 204 00:11:52,641 --> 00:11:55,000 95... 90... Gosh! 205 00:11:56,600 --> 00:11:58,320 All day long does not move at all. 206 00:11:58,321 --> 00:12:00,720 He did this in a few days. 207 00:12:00,720 --> 00:12:02,478 He has never spoken to me since he hired me. 208 00:12:02,479 --> 00:12:03,998 Maybe LTV... high risk, 209 00:12:03,999 --> 00:12:06,280 only interest... during mortgage history I've never heard of anything like that, 210 00:12:06,281 --> 00:12:09,120 Never heard of something like that... How can it be? 211 00:12:09,120 --> 00:12:10,520 Michael, how are you guys? 212 00:12:10,521 --> 00:12:13,640 Lawrence, I found something very interesting. 213 00:12:13,640 --> 00:12:15,638 Very good, Michael. Every time you find something interesting, 214 00:12:15,639 --> 00:12:16,918 we can make money. 215 00:12:16,919 --> 00:12:18,438 What stocks are you reviewing? 216 00:12:18,439 --> 00:12:19,878 No, no, no. Not stocks. 217 00:12:19,879 --> 00:12:22,240 I want to take a position short over the property market. 218 00:12:23,360 --> 00:12:26,480 Are you serious? The problem is the market property is very stable. 219 00:12:26,480 --> 00:12:27,960 Greenspan just stated 220 00:12:28,000 --> 00:12:30,640 the property market bubble is regional, bad credit is very rare. 221 00:12:30,641 --> 00:12:32,880 Say to them I immediately go there. 222 00:12:32,880 --> 00:12:34,760 - Please repeat again? - Listen, listen... 223 00:12:34,761 --> 00:12:36,679 Greenspan said wrong. 224 00:12:36,680 --> 00:12:40,159 Either you are serious about this, but sometimes you are heard 225 00:12:40,160 --> 00:12:42,560 very disparaging and arrogant. 226 00:12:42,560 --> 00:12:43,798 The fact is so. Greenspan's statement is wrong. 227 00:12:43,799 --> 00:12:46,240 I don't know you want me to give it up like that... 228 00:12:46,241 --> 00:12:47,680 Look, Michael. 229 00:12:47,680 --> 00:12:49,398 Metro Capital is in behind you 4 years ago 230 00:12:49,399 --> 00:12:51,280 when you are a Doctor with 231 00:12:51,281 --> 00:12:53,680 site and amount of inheritance. 232 00:12:53,680 --> 00:12:54,758 So far we are fine. 233 00:12:54,759 --> 00:12:56,040 What if you just focus on stocks? 234 00:12:56,041 --> 00:12:58,239 Listen. You know me. I, I... 235 00:12:58,240 --> 00:13:02,079 I look for a value wherever it is located. 236 00:13:02,080 --> 00:13:03,279 And the fact is 237 00:13:03,280 --> 00:13:06,599 this mortgage guaranteed securities contents 238 00:13:06,600 --> 00:13:10,079 is a suprime loan (rank B) that is very risky. 239 00:13:10,080 --> 00:13:12,679 And when most interest rates 240 00:13:12,680 --> 00:13:15,080 rose in 2007, 241 00:13:15,080 --> 00:13:16,360 the loan will begin to fall. 242 00:13:16,361 --> 00:13:19,759 And if it falls above 15% then all securities are of no value. 243 00:13:19,760 --> 00:13:22,040 Michael, stop first. 244 00:13:22,040 --> 00:13:23,320 Later we'll talk about it again, okay? 245 00:13:23,321 --> 00:13:26,439 Lawrence, please, don't think I'm stupid. Listen... 246 00:13:26,440 --> 00:13:27,999 Securities guaranteed mortgage. 247 00:13:28,000 --> 00:13:29,399 This, this, this... 248 00:13:29,400 --> 00:13:31,279 Subprime loans. Tranche. 249 00:13:31,280 --> 00:13:33,039 Quite confusing & apos; right? 250 00:13:33,040 --> 00:13:35,759 Does that saturate you? Or feel stupid? 251 00:13:35,760 --> 00:13:38,120 That's how it should be. 252 00:13:38,120 --> 00:13:39,798 Wall Street is happy to use confusing terms which aims to make you think only themselves can do their work. 253 00:13:39,799 --> 00:13:42,800 Or, better, 254 00:13:42,840 --> 00:13:44,080 so you don't bother them. 255 00:13:44,081 --> 00:13:46,559 So this is Margot Robbie in the tub taking a bubble of soap to explain. 256 00:13:46,560 --> 00:13:49,759 Basically, Lewis Ranieri's mortgage very profitable for large banks. 257 00:13:49,760 --> 00:13:52,879 They generate billions of with a fee of 2% 258 00:13:52,880 --> 00:13:55,239 of each of the securities they successfully sell. 259 00:13:55,240 --> 00:13:59,280 But then they start running out of mortgages 260 00:13:59,280 --> 00:14:01,558 to be included. 261 00:14:01,559 --> 00:14:03,440 Moreover, the number of houses and communities 262 00:14:03,441 --> 00:14:05,079 263 00:14:05,080 --> 00:14:07,800 264 00:14:07,800 --> 00:14:09,640 with good paying ability 265 00:14:09,641 --> 00:14:11,679 also limited & apos; right? 266 00:14:11,680 --> 00:14:13,839 So the bank starts filling in securities 267 00:14:13,840 --> 00:14:16,079 with a riskier mortgage. 268 00:14:16,080 --> 00:14:17,599 Thank you, Benter. 269 00:14:17,600 --> 00:14:21,959 That way the bank can continue turning the profit engine, right? 270 00:14:21,960 --> 00:14:26,440 By the way, this risky mortgage is called subprime. 271 00:14:26,440 --> 00:14:28,880 So whenever you hear "subprima", think about it 272 00:14:28,881 --> 00:14:30,439 "junk". 273 00:14:30,440 --> 00:14:34,079 Our friend Michael Burry discovers the fact that mortgage securities 274 00:14:34,080 --> 00:14:37,359 who should have this 65% AAA rating 275 00:14:37,360 --> 00:14:40,720 actually just a pile of garbage. 276 00:14:40,720 --> 00:14:43,560 So he will now take a "short" position on the securities. 277 00:14:43,561 --> 00:14:45,560 The meaning is "bet against". 278 00:14:46,400 --> 00:14:47,400 Understand? 279 00:14:48,120 --> 00:14:49,400 Good. 280 00:14:52,440 --> 00:14:53,840 Now move away. 281 00:14:53,840 --> 00:14:55,078 Only a matter of time until 282 00:14:55,079 --> 00:14:56,240 other people see this investment. 283 00:14:56,241 --> 00:14:58,040 We must act now! 284 00:14:58,040 --> 00:15:00,360 How do you know the valuable letter is not valuable? 285 00:15:00,361 --> 00:15:02,680 Isn't the content thousands 286 00:15:02,680 --> 00:15:03,880 mortgage letter page? 287 00:15:03,881 --> 00:15:06,240 I read everything. 288 00:15:06,240 --> 00:15:08,198 - Do you read everything? - I read... Yeah. 289 00:15:08,199 --> 00:15:09,920 No one reads it. Only lawyers 290 00:15:09,921 --> 00:15:11,519 who reads it. 291 00:15:11,520 --> 00:15:16,359 Look, I don't think they also know what they have done. 292 00:15:16,360 --> 00:15:19,879 The property market relies on 293 00:15:19,880 --> 00:15:22,640 bad credit, and I... 294 00:15:22,640 --> 00:15:24,800 This is a time bomb, and I want to take a short position. 295 00:15:24,801 --> 00:15:27,159 With what instrument, Michael? 296 00:15:27,160 --> 00:15:30,239 There are no insurance contracts or any options for mortgage securities. 297 00:15:30,240 --> 00:15:31,640 The market is too stable. 298 00:15:31,640 --> 00:15:32,880 Lawrence... 299 00:15:36,240 --> 00:15:40,400 This is what I will do. I will persuade the bank 300 00:15:40,400 --> 00:15:42,480 to make me that instrument. 301 00:15:43,080 --> 00:15:44,760 And then 302 00:15:45,560 --> 00:15:47,559 I will buy. 303 00:15:47,560 --> 00:15:50,560 I don't want a business like that. 304 00:15:50,560 --> 00:15:53,200 Money is not money. That is the money whose value drops 305 00:15:53,880 --> 00:15:56,120 Hey! Excuse me! 306 00:15:57,480 --> 00:16:00,479 I ask you. What company treats its customers 307 00:16:00,480 --> 00:16:03,959 like that but still successful? 308 00:16:03,960 --> 00:16:05,880 OK. Okay, Goldman. You are right. 309 00:16:05,880 --> 00:16:07,278 Mark Baum builds his career 310 00:16:07,279 --> 00:16:09,398 never assume individuals or companies 311 00:16:09,399 --> 00:16:11,158 that they obey the rules without being proven themselves. 312 00:16:11,159 --> 00:16:12,718 When he was little he was a great student 313 00:16:12,719 --> 00:16:14,878 when studying the Talmud at Yeshiva. Whatever it is. 314 00:16:14,879 --> 00:16:16,840 But one day the rabbi (the name for the Jewish priest) spoke to his mother. 315 00:16:18,040 --> 00:16:21,079 Paul is a good child, and Mark is a great student 316 00:16:21,080 --> 00:16:23,759 in the Torah and Talmud fields. 317 00:16:23,760 --> 00:16:25,799 Then what's the problem, rabbi? 318 00:16:25,800 --> 00:16:29,800 The reason Mark learned so hard. 319 00:16:29,800 --> 00:16:33,000 He is looking for inconsistencies in the word of God! 320 00:16:35,720 --> 00:16:38,959 Did he find something? 321 00:16:38,960 --> 00:16:42,320 Later, Baum started his business himself on Wall Street. 322 00:16:42,320 --> 00:16:43,798 He has great abilities sniff the wrong thing. 323 00:16:43,799 --> 00:16:45,920 And he is not afraid to tell people when and where occurrence. 324 00:16:45,921 --> 00:16:48,600 But then a tragedy _ happened to Mark, 325 00:16:48,600 --> 00:16:50,320 and that rotates the point of view 326 00:16:50,360 --> 00:16:51,878 and assume that the whole system is a lie. 327 00:16:51,879 --> 00:16:54,280 Wait. 328 00:16:54,281 --> 00:16:55,920 This is Cynthia. I will arrive at the office in 20 minutes. 329 00:16:55,920 --> 00:16:58,760 Hi, baby. 330 00:16:59,680 --> 00:17:00,960 The therapist calls me. You did it again. 331 00:17:02,320 --> 00:17:06,439 There are no taxis. What should I do? 332 00:17:06,440 --> 00:17:09,239 I'm worried about you, Mark. 333 00:17:09,240 --> 00:17:11,000 At least I went to attend. 334 00:17:11,000 --> 00:17:12,320 You roam like you have rights 335 00:17:13,640 --> 00:17:15,680 - determine everything is wrong. - Okay. 336 00:17:15,680 --> 00:17:17,638 Your anger is huge. 337 00:17:17,639 --> 00:17:18,920 OK. Do you know? 338 00:17:18,921 --> 00:17:20,399 339 00:17:20,400 --> 00:17:23,399 I'm a bad guy and I'm upset. 340 00:17:23,400 --> 00:17:25,400 But there is a storm out here, baby. 341 00:17:25,400 --> 00:17:28,760 You don't know what these people are doing. 342 00:17:28,800 --> 00:17:31,560 And they passed by like their in the E video. 343 00:17:33,160 --> 00:17:34,719 They are all messed up, you know. 344 00:17:34,720 --> 00:17:37,359 Do you know what they care about? They care about soccer matches. 345 00:17:37,360 --> 00:17:40,320 Or the artist who enters rehabilitation. 346 00:17:40,320 --> 00:17:42,440 I think you should try treatment. 347 00:17:42,480 --> 00:17:45,720 No, no. We have agreed. It affects work. 348 00:17:45,720 --> 00:17:48,078 You hate Wall Street. Maybe it's time to stop. 349 00:17:48,079 --> 00:17:50,080 - I love my work. - You hate your job. 350 00:17:50,120 --> 00:17:51,158 I love my work. 351 00:17:51,159 --> 00:17:52,238 You're sad. 352 00:17:52,239 --> 00:17:54,240 I love my work. I love my work, honey. 353 00:17:55,160 --> 00:17:56,480 Mark... 354 00:17:57,680 --> 00:18:00,840 Every day I'm sad with what happened. 355 00:18:00,840 --> 00:18:04,200 I know for sure you also feel the same thing, but you never show it. 356 00:18:10,440 --> 00:18:12,960 I know how your closeness with your sister. 357 00:18:16,320 --> 00:18:17,400 Paul. 358 00:18:18,480 --> 00:18:20,080 Where do you want to go, Paul? 359 00:18:25,320 --> 00:18:26,600 Paul! 360 00:18:32,240 --> 00:18:35,320 Every day I think you will talk about it, but it never happened. 361 00:18:39,040 --> 00:18:42,719 Can you at least think about about making changes? 362 00:18:42,720 --> 00:18:45,639 Good. Good. Honey, you know? I will consider it. 363 00:18:45,640 --> 00:18:49,119 However, to be honest, Cynthia. I am alright. That's how it is. 364 00:18:49,120 --> 00:18:51,159 Hey, hey, hey! No, no. 365 00:18:51,160 --> 00:18:54,640 My taxi. That's my taxi. That is my taxi. That's my taxi. 366 00:18:54,640 --> 00:18:56,278 - Stupid basis. Damn you. - Damn you. 367 00:18:56,279 --> 00:18:57,880 - Damn you. - Damn you. 368 00:18:58,960 --> 00:19:00,480 I'll call again later. 369 00:19:07,840 --> 00:19:12,000 I want to buy swaps on mortgage securities. 370 00:19:12,000 --> 00:19:14,360 Bad Credit Swap that will pay 371 00:19:15,400 --> 00:19:18,720 if the securities that are are used as collateral for traffic jams. 372 00:19:18,720 --> 00:19:20,320 Do you want to bet against the property market? 373 00:19:20,321 --> 00:19:22,360 - Yes. - Why? 374 00:19:22,360 --> 00:19:23,600 The securities will jam 375 00:19:23,601 --> 00:19:26,159 if millions of Americans don't pay their mortgage. 376 00:19:26,160 --> 00:19:28,640 That never happened in history. 377 00:19:28,640 --> 00:19:30,158 Please do not take offense, Dr. Burry, 378 00:19:30,159 --> 00:19:31,640 this is like a stupid investment. 379 00:19:31,641 --> 00:19:34,519 Based on public opinion 380 00:19:34,520 --> 00:19:36,599 from markets and banks in the current culture. 381 00:19:36,600 --> 00:19:38,960 Yes, this is a stupid investment. 382 00:19:38,960 --> 00:19:41,600 But, uh... Everyone is wrong. 383 00:19:43,080 --> 00:19:44,600 Wow, shocking. 384 00:19:46,920 --> 00:19:48,638 We are talking about Wall Street, Dr. Burry. 385 00:19:48,639 --> 00:19:50,720 If you offer free money to us, we will take it. 386 00:19:50,721 --> 00:19:55,320 One of my concerns is if the securities are stuck, 387 00:19:56,480 --> 00:20:00,080 uh, I want to make sure, um, payment 388 00:20:00,080 --> 00:20:02,840 um, if only a problem occurs liquidity with your bank. 389 00:20:03,880 --> 00:20:06,320 Sorry, are you serious? 390 00:20:06,320 --> 00:20:08,038 You want to bet against the property market 391 00:20:08,039 --> 00:20:09,440 and you are worried we can't pay you? 392 00:20:09,441 --> 00:20:11,000 Yes, that's right. 393 00:20:22,360 --> 00:20:24,359 Unless the market falls. 394 00:20:24,360 --> 00:20:26,639 The property market will never fall 395 00:20:26,640 --> 00:20:29,560 because currently it is very sturdy. 396 00:20:29,560 --> 00:20:32,280 I mean, who doesn't pay his mortgage? 397 00:20:36,240 --> 00:20:37,240 Mmm-hmm. 398 00:20:39,520 --> 00:20:40,640 Dr. Burry, 399 00:20:40,640 --> 00:20:43,038 we can make the structure of the payment referred to 400 00:20:43,039 --> 00:20:45,158 who will pay you if valuable letter is stuck. 401 00:20:45,159 --> 00:20:46,720 But that also applies with your payment 402 00:20:46,721 --> 00:20:48,759 if the value of mortgage securities rises. 403 00:20:48,760 --> 00:20:51,600 You must pay a premium monthly to us. 404 00:20:51,600 --> 00:20:54,280 What is acceptable, Dr. Burry? 405 00:20:56,720 --> 00:20:58,959 Yes. Yes. 406 00:20:58,960 --> 00:21:02,280 Um, I have a prospectus on guaranteed mortgage securities 407 00:21:02,280 --> 00:21:04,480 I want to position short. 408 00:21:08,920 --> 00:21:11,320 Most mortgages... 409 00:21:22,000 --> 00:21:24,600 which in my opinion is not at all will give us harm. 410 00:21:38,000 --> 00:21:40,720 Dr. Burry, this doesn't matter. 411 00:21:40,720 --> 00:21:42,718 Yeah. We will prepare $ 5 juta million to sell to you 412 00:21:42,719 --> 00:21:44,600 in the form of Swap Bad Credit on mortgage securities. 413 00:21:45,840 --> 00:21:47,240 Can we raise it to $ 100 million? 414 00:21:50,120 --> 00:21:52,520 Uh, of course, $ 100 million doesn't matter. 415 00:21:54,080 --> 00:21:57,280 We will contact you, send some documents. 416 00:21:58,160 --> 00:21:59,160 Um... 417 00:22:00,240 --> 00:22:01,720 I like this mug. 418 00:22:01,720 --> 00:22:03,440 Can I bring one home for my child? 419 00:22:03,441 --> 00:22:05,319 Please... Yes. 420 00:22:05,320 --> 00:22:06,880 Thank you. 421 00:22:06,880 --> 00:22:08,240 Take two. 422 00:22:28,240 --> 00:22:31,240 Can it be worth $ 200 million? 423 00:22:32,720 --> 00:22:35,320 I mean, it could be. But are you sure? 424 00:22:36,240 --> 00:22:39,440 Of course. Of course, it can be like that. 425 00:22:53,120 --> 00:22:56,600 We do different projects. In the plantation sector. 426 00:22:56,600 --> 00:22:58,320 Securities that want are positioned short. 427 00:23:00,080 --> 00:23:01,640 It's not bad to see yourself on the big screen. 428 00:23:01,641 --> 00:23:03,679 Very cool. 429 00:23:03,680 --> 00:23:07,439 I ordered 24-ounce T-bone, which was chosen. 430 00:23:07,440 --> 00:23:09,000 - Volume... - Yeah. 431 00:23:09,000 --> 00:23:10,680 Compared to prime credit. 432 00:23:10,681 --> 00:23:13,360 I prefer subprima, and the point is... 433 00:23:20,680 --> 00:23:23,839 Can I ask for lettuce, tomatoes, without onions? 434 00:23:23,840 --> 00:23:27,240 So, without onions. Lettuce, tomato, Thousand Island okay? 435 00:23:27,240 --> 00:23:28,240 Yeah. 436 00:23:35,280 --> 00:23:37,080 Hey, Randall! Is there a lot of money? 437 00:23:37,080 --> 00:23:39,000 Not a bonus is still three months away. 438 00:23:39,001 --> 00:23:43,079 We just sold $ 200 million in SWAP forms for mortgage securities. 439 00:23:43,080 --> 00:23:45,359 Someone is a financial manager from California. 440 00:23:45,360 --> 00:23:46,800 Crazy & right? 441 00:23:46,800 --> 00:23:47,998 A completely new way make money, Doug. 442 00:23:47,999 --> 00:23:50,280 Wait, wait. There is no swap for a mortgage. 443 00:23:50,281 --> 00:23:52,959 Now there. We made it for him. 444 00:23:52,960 --> 00:23:54,679 Maybe he forgot to take the medicine. 445 00:23:54,680 --> 00:23:56,120 I don't know. 446 00:23:56,120 --> 00:23:57,960 - Want to join? No? - Wait a minute. 447 00:23:57,961 --> 00:23:59,119 Oh... 448 00:23:59,120 --> 00:24:00,640 Hey, Jared. 449 00:24:00,640 --> 00:24:02,158 You hear what's new just got Randall 450 00:24:02,159 --> 00:24:03,480 with the financial manager? 451 00:24:03,481 --> 00:24:05,720 Randall? Nonsense. 452 00:24:05,720 --> 00:24:07,638 He is bad. I'm sure it's a small deal. 453 00:24:07,639 --> 00:24:08,880 No, this is true. 454 00:24:10,120 --> 00:24:11,600 I told you we will meet again. 455 00:24:11,601 --> 00:24:14,120 Unfortunately, in a place like this I should never go to it. 456 00:24:14,120 --> 00:24:16,840 I never hang out with the idiots after going home, at all. 457 00:24:16,841 --> 00:24:19,039 My friends are classy. 458 00:24:19,040 --> 00:24:22,480 It seems like that person wants $ 200,000 in the form of Bad Credit Swaps. 459 00:24:22,480 --> 00:24:24,318 Randall generates sales. Can you believe it? 460 00:24:24,319 --> 00:24:26,640 Someone takes a short position of $ 200 million on mortgage securities? 461 00:24:26,641 --> 00:24:30,040 That's only with Deutsche. Her gossip did it all over the city. 462 00:24:30,920 --> 00:24:32,120 What is the total? 463 00:24:32,121 --> 00:24:33,919 $ 1.3 billion. 464 00:24:33,920 --> 00:24:37,839 What? That's about the same as with Scion liquidity. 465 00:24:37,840 --> 00:24:39,999 Michael, this is worrying. 466 00:24:40,000 --> 00:24:41,519 Lawrence, it's not 467 00:24:41,520 --> 00:24:44,160 all of our liquidity. 468 00:24:44,160 --> 00:24:45,400 And I'm not sure 469 00:24:45,401 --> 00:24:47,760 You understand the purpose of this transaction. 470 00:24:47,760 --> 00:24:48,880 All transactions are certain. 471 00:24:48,881 --> 00:24:52,039 Mike, I consider myself a mentor for you. 472 00:24:52,040 --> 00:24:54,040 But our company is not comfortable 473 00:24:54,040 --> 00:24:55,960 with this investment. Do you understand? 474 00:24:55,961 --> 00:24:58,279 Lawrence, I have full rights 475 00:24:58,280 --> 00:25:01,280 when talking about investment strategies. 476 00:25:01,280 --> 00:25:02,520 You can read our agreement. 477 00:25:02,521 --> 00:25:05,919 Don't talk about agreement to me, Michael. 478 00:25:05,920 --> 00:25:07,519 We think of you 479 00:25:07,520 --> 00:25:09,759 will not behave like crazy. 480 00:25:09,760 --> 00:25:11,439 This is not crazy. 481 00:25:11,440 --> 00:25:12,999 This is very logical. 482 00:25:13,000 --> 00:25:15,759 So, now we pay a premium to swap 483 00:25:15,760 --> 00:25:18,599 against the property market until the securities get stuck? 484 00:25:18,600 --> 00:25:20,400 In other words, we lose millions 485 00:25:20,400 --> 00:25:23,080 Until something that has never happened before can happen? 486 00:25:26,960 --> 00:25:27,960 Right. 487 00:26:01,480 --> 00:26:02,839 Hello, Mark Baum. 488 00:26:02,840 --> 00:26:05,000 Oh hey, Kathy, you caught me. 489 00:26:05,000 --> 00:26:06,078 This afternoon I have personal business. 490 00:26:06,079 --> 00:26:07,280 I'm not your caregiver. 491 00:26:07,281 --> 00:26:09,840 If FrontPoint makes money for Morgan Stanley, I'm happy. 492 00:26:09,840 --> 00:26:12,238 Okay. Hey, am I not wrong? I heard you hoped? 493 00:26:12,239 --> 00:26:13,678 We hope to be expected. 494 00:26:13,679 --> 00:26:15,440 IVF cleans us but we still hope to be positive... 495 00:26:15,441 --> 00:26:16,960 That's interesting! 496 00:26:21,080 --> 00:26:24,160 Lump in my ball. And I did a scan. 497 00:26:24,200 --> 00:26:25,439 Mmm-hmm. 498 00:26:25,440 --> 00:26:29,039 It turns out there is a large object called epididymis. 499 00:26:29,040 --> 00:26:31,679 That is the object around the ball 500 00:26:31,680 --> 00:26:33,479 and like a bag inside 501 00:26:33,480 --> 00:26:34,639 I have 502 00:26:34,640 --> 00:26:36,519 - epididymis. - I'm transfixed... 503 00:26:36,520 --> 00:26:38,679 Glued with this. Do you have a picture? 504 00:26:38,680 --> 00:26:42,279 Almost as big as the testicles themselves. 505 00:26:42,280 --> 00:26:44,479 Listen to this. Cynthia... 506 00:26:44,480 --> 00:26:48,800 Comrades. Cynthia wants me to stop and open a B & B in Vermont. 507 00:26:48,800 --> 00:26:50,558 Sounds fun. I really want to see a 508 00:26:50,559 --> 00:26:52,278 Mark Baum runs a lodging business. 509 00:26:52,279 --> 00:26:54,320 You will say, "Please, this is your oatmeal, fucker." 510 00:26:54,321 --> 00:26:56,959 Mark rejects funds from moneyed people, 511 00:26:56,960 --> 00:27:00,119 so he must get funds from under the Morgan Stanley umbrella. 512 00:27:00,120 --> 00:27:03,879 The small team reflects distrust of the system. 513 00:27:03,880 --> 00:27:05,439 You guys are crazy. You crazy. 514 00:27:05,440 --> 00:27:07,638 He says this work makes me unhappy. 515 00:27:07,639 --> 00:27:08,798 But you're happy when you're not happy. 516 00:27:08,799 --> 00:27:10,358 I'm happy when I'm not happy. 517 00:27:10,359 --> 00:27:11,438 Vinnie Daniel. 518 00:27:11,439 --> 00:27:12,678 Do you know how to make pancakes? 519 00:27:12,679 --> 00:27:14,478 - One person near Mark. - You know 520 00:27:14,479 --> 00:27:16,080 - how to wash? Make the bed? - Okay... 521 00:27:16,081 --> 00:27:18,718 Vinnie's father died of a criminal act when he was a teenager. 522 00:27:18,719 --> 00:27:20,598 Like Mark, he doesn't talk about it. 523 00:27:20,599 --> 00:27:21,958 I'm not talking about that. 524 00:27:21,959 --> 00:27:24,358 Cynthia is not kidding. He really can make him move to Vermont. 525 00:27:24,359 --> 00:27:26,118 I mean, he made me wear seat belts. 526 00:27:26,119 --> 00:27:27,958 - Hey, you want me... - Porter Collins. 527 00:27:27,959 --> 00:27:30,198 Former Olympic Olympic rowing athlete studying at Brown. 528 00:27:30,199 --> 00:27:31,998 He works with Baum on the previous firm 529 00:27:31,999 --> 00:27:34,000 and do not understand why no one obeys Baum. 530 00:27:34,001 --> 00:27:36,120 Men with all good ideas. 531 00:27:36,120 --> 00:27:38,038 Sorry. I think you contacted FrontPoint wrong. 532 00:27:38,039 --> 00:27:39,520 Because there are other FrontPoint 533 00:27:39,521 --> 00:27:40,880 in the same building. 534 00:27:40,880 --> 00:27:43,680 And Danny Moses. The optimist. 535 00:27:44,560 --> 00:27:46,159 And a reliable trader. 536 00:27:46,160 --> 00:27:49,079 That is the reason they want to listen optimistic nonsense. 537 00:27:49,080 --> 00:27:50,399 That's a strange telephone. 538 00:27:50,400 --> 00:27:53,759 You've been waiting for a long time people are wrong. 539 00:27:53,760 --> 00:27:56,520 Earlier people from Deutsche 540 00:27:56,520 --> 00:27:59,080 who talks about putting positions short against property securities. 541 00:28:00,440 --> 00:28:01,758 And in the middle of the conversation 542 00:28:01,759 --> 00:28:02,960 I realize he contacted FrontPoint that was wrong. 543 00:28:02,961 --> 00:28:06,000 And then... because he wants someone from the 8th floor. 544 00:28:06,000 --> 00:28:07,998 He wants to put a short position on property securities? 545 00:28:07,999 --> 00:28:09,120 Uh-huh. It happens about 5 times a day someone wrongly connected. 546 00:28:09,121 --> 00:28:10,640 We have to change names. 547 00:28:10,640 --> 00:28:11,838 Wait. Wait. 548 00:28:11,839 --> 00:28:12,918 549 00:28:12,919 --> 00:28:15,198 He wants to put a short position on property securities? 550 00:28:15,199 --> 00:28:16,960 Who wants to bet against property? 551 00:28:17,920 --> 00:28:19,279 What is ABX's position? 552 00:28:19,280 --> 00:28:20,519 ABX position? 553 00:28:20,520 --> 00:28:23,759 Check the value of securities subprime mortgages. Sleep. 554 00:28:23,760 --> 00:28:26,159 ABX's position is, uh... 555 00:28:26,160 --> 00:28:29,520 Wow, come down! Down 3 points from last year's position. 556 00:28:29,520 --> 00:28:31,838 That's weird. I never heard of this leak. 557 00:28:31,839 --> 00:28:32,960 What is the name of the person? 558 00:28:32,961 --> 00:28:35,199 Jared Vennett. Vennett. 559 00:28:35,200 --> 00:28:37,519 Very true. This lucky bastard 560 00:28:37,520 --> 00:28:40,359 get wind of the best transactions in Wall Street history 561 00:28:40,360 --> 00:28:42,000 from a wrong call. 562 00:28:42,000 --> 00:28:44,400 They should pay 10% to my stupid assistant. 563 00:28:44,401 --> 00:28:46,800 His name is Jared Vennett. Vennett. 564 00:28:46,800 --> 00:28:48,840 Jared Vennett from Deutsche. Sounds suspicious. 565 00:28:48,841 --> 00:28:50,559 Sounds like a bastard. 566 00:28:50,560 --> 00:28:52,439 Do you smell it? 567 00:28:52,440 --> 00:28:53,880 Do you smell it? 568 00:28:53,880 --> 00:28:55,120 I smell the smell of money. 569 00:28:55,920 --> 00:28:57,320 This is the mortgage principle... 570 00:29:01,120 --> 00:29:03,320 Okay, hi. How are you? 571 00:29:03,840 --> 00:29:05,160 Sit down. 572 00:29:05,160 --> 00:29:07,920 Okay, Mr. Vennett from Deutsche Bank. What can you convey? 573 00:29:12,440 --> 00:29:14,000 Here it is. 574 00:29:17,480 --> 00:29:20,119 So how many people do you ask about this transaction? 575 00:29:20,120 --> 00:29:22,960 Some. Clearly visible interest. 576 00:29:22,960 --> 00:29:24,440 - No! - My boss can be angry... 577 00:29:24,480 --> 00:29:25,960 - NO! - Are you crazy, Jared? 578 00:29:25,961 --> 00:29:28,239 - Go there. - Screw you. 579 00:29:28,240 --> 00:29:31,120 That's the reason you talked to us, wrongly connected. 580 00:29:31,120 --> 00:29:32,640 It seems like a lot of interest from these people. 581 00:29:32,641 --> 00:29:35,040 OK. Some people who met us 582 00:29:35,040 --> 00:29:37,518 just laugh at me about this agreement. Are you too? 583 00:29:37,519 --> 00:29:38,598 Is this meeting like that? 584 00:29:38,599 --> 00:29:39,720 Not like that. 585 00:29:39,721 --> 00:29:41,600 This is only Mark's wish. 586 00:29:41,600 --> 00:29:42,960 - Let's see what you have. - Sorry. 587 00:29:42,961 --> 00:29:44,759 Do you smell the smell? What smell? 588 00:29:44,760 --> 00:29:46,599 - What? - What is that smell? 589 00:29:46,600 --> 00:29:47,680 Your perfume? 590 00:29:47,680 --> 00:29:48,720 No. 591 00:29:51,000 --> 00:29:52,399 Opportunity. 592 00:29:52,400 --> 00:29:53,759 No. Money. 593 00:29:53,760 --> 00:29:55,159 - Oh... - Okay. 594 00:29:55,160 --> 00:29:57,199 - I smell the smell of money. - Okay. 595 00:29:57,200 --> 00:29:58,600 Chris, damn. 596 00:29:58,600 --> 00:29:59,880 Sorry. 597 00:30:03,080 --> 00:30:05,559 This is the principle of mortgage securities. 598 00:30:05,560 --> 00:30:07,919 OK? Originally simple. 599 00:30:07,920 --> 00:30:11,679 There are several thousand mortgages with AAA rating combined into one, 600 00:30:11,680 --> 00:30:13,519 guaranteed by the American government. 601 00:30:13,520 --> 00:30:15,400 Modern versions are slightly different. 602 00:30:15,400 --> 00:30:18,360 Is separate. And consists of layers of tranche. 603 00:30:19,358 --> 00:30:23,410 Tranche is French which means "part of something." 604 00:30:23,600 --> 00:30:26,080 Highest level, AAA, first paid. 605 00:30:26,080 --> 00:30:27,798 The lowest rating, B, paid the last time, 606 00:30:27,799 --> 00:30:29,358 which was declared to be the first traffic jam. 607 00:30:29,359 --> 00:30:32,078 Obviously, if you buy a B rating, you can make more money. 608 00:30:32,079 --> 00:30:33,360 But a little more risky. 609 00:30:33,361 --> 00:30:35,520 Sometimes it gets stuck. 610 00:30:36,760 --> 00:30:38,120 Chris? 611 00:30:41,920 --> 00:30:44,280 Somewhere in the line, this B and BB rating 612 00:30:44,281 --> 00:30:45,799 changes from a bit risky 613 00:30:45,800 --> 00:30:48,319 to be garbage. Where is the trash? 614 00:30:48,320 --> 00:30:49,720 Right behind you. 615 00:30:49,720 --> 00:30:52,640 What I mean is the lowest FICO score. 616 00:30:53,800 --> 00:30:55,400 No verification of income. 617 00:30:56,480 --> 00:30:59,320 Adjustable interest rates. Trash! 618 00:31:00,800 --> 00:31:03,719 The basic interest rate rises from the original 1% to 4%, friend. 619 00:31:03,720 --> 00:31:06,719 And if it rises up to 8%, and it will definitely go up, 620 00:31:06,720 --> 00:31:09,078 a lot of this BBB rating will be zero too. 621 00:31:09,079 --> 00:31:10,480 And that... you're too close. 622 00:31:12,240 --> 00:31:13,320 Is an opportunity. 623 00:31:13,321 --> 00:31:14,800 Okay. 624 00:31:14,800 --> 00:31:18,080 What do you mean that if the interest rate is 8% then valuable _ letters are jammed, now we are already at 4%? 625 00:31:18,081 --> 00:31:19,159 Right. 626 00:31:19,160 --> 00:31:21,039 If it reaches 8%, is it doomsday? 627 00:31:21,040 --> 00:31:22,160 Yeah. Correct. 628 00:31:22,160 --> 00:31:23,960 How could not be aware of this? 629 00:31:24,000 --> 00:31:26,199 Are you sure of your calculations? 630 00:31:26,200 --> 00:31:28,839 Look at him. Look at my quant. 631 00:31:28,840 --> 00:31:29,999 Kuant what? 632 00:31:30,000 --> 00:31:31,839 My Quantity! 633 00:31:31,840 --> 00:31:34,640 My calculation expert. See him 634 00:31:34,640 --> 00:31:37,078 Do you realize there is something different about it? Look at his face. 635 00:31:37,079 --> 00:31:38,240 That's quite racist. 636 00:31:38,241 --> 00:31:40,800 Look at his eyes! I give the instructions. 637 00:31:40,800 --> 00:31:42,320 His name is Yang! 638 00:31:43,520 --> 00:31:46,919 He won a math competition in China! 639 00:31:46,920 --> 00:31:49,480 He can't even speak English! 640 00:31:49,480 --> 00:31:51,160 Yes, I'm sure of the calculation. 641 00:31:52,840 --> 00:31:56,760 Actually, my name is Jiang and I can speak English. 642 00:31:56,760 --> 00:31:58,278 Jared says I can't because he thinks 643 00:31:58,279 --> 00:32:00,200 it can make it sound more original. 644 00:32:00,201 --> 00:32:03,319 And I got second place in the national competition. 645 00:32:03,320 --> 00:32:08,280 So you offer us the opportunity to put a short position on that? How to? 646 00:32:08,280 --> 00:32:10,840 With something called Bad Credit Swap. 647 00:32:12,040 --> 00:32:14,639 It's like insurance for valuable letters, and if it explodes 648 00:32:14,640 --> 00:32:17,879 You can make a profit of 10 to 1, even 20 to 1. 649 00:32:17,880 --> 00:32:20,279 And now it's slowly exploding! 650 00:32:20,280 --> 00:32:22,439 10 to 1? 20 to 1? Impossible. 651 00:32:22,440 --> 00:32:24,879 And no one pays attention. 652 00:32:24,880 --> 00:32:27,359 Nobody pays attention! 653 00:32:27,360 --> 00:32:30,960 Because banks are too busy take care of commission payments 654 00:32:30,960 --> 00:32:32,320 after selling securities. 655 00:32:32,321 --> 00:32:35,159 But wait. You are a bank. You work for the bank. 656 00:32:35,160 --> 00:32:37,239 I think your pay is quite good and fat. 657 00:32:37,240 --> 00:32:39,640 Please don't talk about my payment. 658 00:32:39,640 --> 00:32:41,760 Good pay, that's a good shirt. Is there also for men? 659 00:32:43,040 --> 00:32:44,120 Aren't you a bank person? 660 00:32:44,121 --> 00:32:47,119 I work for the bank. I don't think like a bank. 661 00:32:47,120 --> 00:32:51,079 Large banks, small banks, I want to make money. Okay? 662 00:32:51,080 --> 00:32:53,919 Let me explain. I stand in front of the house that fires... 663 00:32:53,920 --> 00:32:56,719 and I offer fire insurance for that. 664 00:32:56,720 --> 00:32:59,359 How can securities guarantee be as bad as that? 665 00:32:59,360 --> 00:33:00,679 It is not legal. 666 00:33:00,680 --> 00:33:02,720 No one knows what is inside. 667 00:33:02,720 --> 00:33:04,320 No one knows what is in the securities. 668 00:33:04,321 --> 00:33:07,439 I've seen some of them have a 65% AAA 669 00:33:07,440 --> 00:33:10,519 rating I know the reality is 95% is filled with subprime credit 670 00:33:10,520 --> 00:33:13,760 with FICO numbers below 550! 671 00:33:13,760 --> 00:33:14,998 Not possible. 672 00:33:14,999 --> 00:33:16,438 Do you want to be surprised? 673 00:33:16,439 --> 00:33:18,040 When the market considers a letter valuable too risky to buy, 674 00:33:18,080 --> 00:33:20,359 what do you think we do? 675 00:33:20,360 --> 00:33:21,720 Guess what. 676 00:33:21,720 --> 00:33:23,080 I don't know. Tell me. 677 00:33:23,081 --> 00:33:27,079 OK. Do you think we just keep it in record? No. 678 00:33:27,080 --> 00:33:29,080 We only repackaged it with the product 679 00:33:29,080 --> 00:33:31,160 who didn't sell well then put it in the CDO. 680 00:33:31,960 --> 00:33:34,800 - CDO? - Yes. CDO. 681 00:33:34,800 --> 00:33:36,640 - What is that? - This is where we collect some B ratings, 682 00:33:36,641 --> 00:33:38,920 Unsold BB and BBB, 683 00:33:38,920 --> 00:33:40,600 and we collect it into one stack. 684 00:33:42,120 --> 00:33:44,200 And when the stack is big enough, 685 00:33:44,240 --> 00:33:46,839 all of a sudden is considered a diverse commodity 686 00:33:46,840 --> 00:33:51,640 and losers at the rating agency give a rating of 92% -93% AAA, 687 00:33:51,640 --> 00:33:53,640 no questions appear. 688 00:33:55,280 --> 00:33:58,080 Wait a minute. What? Repeat again. 689 00:33:58,120 --> 00:34:00,438 Collateralized debt obligation. (Collateral Debt Bonds) 690 00:34:00,439 --> 00:34:02,040 Important to understand because this is what causes it 691 00:34:02,041 --> 00:34:06,240 property crisis changes to national economic disaster. 692 00:34:06,240 --> 00:34:09,560 This is the world famous chef, Anthony Bourdain explained. 693 00:34:14,000 --> 00:34:15,839 Okay, I'm a Sunday afternoon chef 694 00:34:15,840 --> 00:34:17,679 specify a menu in a large restaurant. 695 00:34:17,680 --> 00:34:19,200 I ordered my fish on Friday, 696 00:34:19,200 --> 00:34:22,120 namely mortgage securities where Michael Burry positions himself short. 697 00:34:22,121 --> 00:34:24,200 But some of the fish fresh are not sold. 698 00:34:24,200 --> 00:34:25,958 I don't know why. Maybe Halibut 699 00:34:25,959 --> 00:34:27,680 is considered to have intelligence like dolphins. 700 00:34:27,681 --> 00:34:29,479 So what should I do? 701 00:34:29,480 --> 00:34:33,080 Dispose of all unsold fish, in this case _ is likened to BBB level securities, 702 00:34:33,080 --> 00:34:35,520 into trash cans and bear losses? 703 00:34:36,480 --> 00:34:37,559 No. 704 00:34:37,560 --> 00:34:40,039 Become a skilled and moral chef like me, 705 00:34:40,040 --> 00:34:42,839 any bad level securities that I can't sell, 706 00:34:42,840 --> 00:34:44,879 I put it in seafood soup. 707 00:34:44,880 --> 00:34:48,399 Notice, this is not an old stock fish. This is truly new cuisine! 708 00:34:48,400 --> 00:34:52,199 And the best part is they eat halibut which is 3 days old. 709 00:34:52,200 --> 00:34:53,999 That's the CDO. 710 00:34:54,000 --> 00:34:56,919 How can things like this be used as collateral? 711 00:34:56,920 --> 00:34:59,399 You're like Dora the Explorer 712 00:34:59,400 --> 00:35:00,760 and you're the first person 713 00:35:00,760 --> 00:35:02,158 - who discovered this. - Wait. Wait. 714 00:35:02,159 --> 00:35:04,118 So if the securities are the mortgage is dog poop, 715 00:35:04,119 --> 00:35:06,400 then CDO is dog poop coated with cat litter. 716 00:35:07,840 --> 00:35:09,759 Yes, right. 717 00:35:09,760 --> 00:35:13,359 Institution treats CDO like a sturdy securities, 718 00:35:13,360 --> 00:35:15,800 and that will be zero. 719 00:35:15,800 --> 00:35:18,120 No. It can't be like that. Just last year, sales of letters 720 00:35:18,121 --> 00:35:20,719 property worth of $ 500 billion. 721 00:35:20,720 --> 00:35:23,440 Rating agencies, banks, and government, 722 00:35:23,440 --> 00:35:25,520 do you say they keep quiet about this? 723 00:35:25,521 --> 00:35:29,840 Yes. All of my departments have long been familiar with this. 724 00:35:29,880 --> 00:35:33,760 They call me Chicken Little. They call me Bubble Boy. 725 00:35:36,440 --> 00:35:40,120 A rating, zero. Rating B, zero. 726 00:35:40,120 --> 00:35:43,360 BB rating, zero. BBB rating, zero. 727 00:35:45,800 --> 00:35:47,280 Then that happens. 728 00:35:47,281 --> 00:35:48,960 What is that? 729 00:35:50,800 --> 00:35:52,520 That's the American property market. 730 00:35:55,480 --> 00:35:56,600 Thank you. 731 00:35:56,600 --> 00:35:57,680 Great, Jared. 732 00:35:57,681 --> 00:35:59,800 Shut your mouth. 733 00:35:59,800 --> 00:36:00,920 Chat with you. 734 00:36:00,921 --> 00:36:02,079 Good. Okay. 735 00:36:02,080 --> 00:36:04,240 Decide, do an agreement. Let's be friends. 736 00:36:04,240 --> 00:36:05,558 We look forward. Thank you. 737 00:36:05,559 --> 00:36:06,678 - Don't mess with me. - OK. 738 00:36:06,679 --> 00:36:07,880 You will say no & no? 739 00:36:07,881 --> 00:36:10,480 No. No, now I will evaluate it. 740 00:36:10,480 --> 00:36:12,160 Thank you. Thank you for coming. 741 00:36:13,240 --> 00:36:14,560 Bye, Jared. 742 00:36:20,600 --> 00:36:22,040 I don't like it. 743 00:36:23,000 --> 00:36:25,760 He is playing with us. 744 00:36:25,800 --> 00:36:27,720 He is playing with us. Too many hidden 745 00:36:27,721 --> 00:36:29,400 and he gave up his position. 746 00:36:30,360 --> 00:36:31,919 How if he is right? 747 00:36:31,920 --> 00:36:33,519 You want him to be right. 748 00:36:33,520 --> 00:36:35,239 Yes, right. 749 00:36:35,240 --> 00:36:38,400 The bank gives us a 25% interest rate on a credit card. 750 00:36:38,400 --> 00:36:40,278 They are playing with our in school loans 751 00:36:40,279 --> 00:36:42,040 that we can never get at a cheap price. 752 00:36:42,041 --> 00:36:45,280 Then this person entered in my office and said 753 00:36:45,320 --> 00:36:48,360 banks turn greedy, they don't pay attention to market instructions, 754 00:36:48,360 --> 00:36:50,480 and can I profit from their stupidity? 755 00:36:50,481 --> 00:36:52,800 Obviously yes, I want the estimate to be correct! 756 00:36:52,800 --> 00:36:54,158 How could you not hate it? 757 00:36:54,159 --> 00:36:55,918 All of them are traits that you teach us not to trust. 758 00:36:55,919 --> 00:36:57,720 I can't hate it. He is very straightforward 759 00:36:57,721 --> 00:37:00,160 about his personal desires, that is what I appreciate. 760 00:37:00,160 --> 00:37:02,240 Can I buy a car from him? No. 761 00:37:03,520 --> 00:37:04,840 What is the statement about the market of securities right? 762 00:37:04,841 --> 00:37:06,040 No. 763 00:37:06,040 --> 00:37:07,040 Let's find out. Let's find out. 764 00:37:08,640 --> 00:37:10,558 Listen. These are 2 simple questions. 765 00:37:10,559 --> 00:37:12,120 Is there a bubble in the property market? 766 00:37:12,121 --> 00:37:14,799 And if there is, how influential is the bank? 767 00:37:14,800 --> 00:37:15,919 Yeah. Okay. 768 00:37:15,920 --> 00:37:17,440 We do it quickly. 769 00:37:17,440 --> 00:37:18,880 Because if he is right, 770 00:37:18,920 --> 00:37:20,720 every loser with funds of several million dollars will fight. 771 00:37:20,721 --> 00:37:22,360 Come on. 772 00:37:22,920 --> 00:37:23,920 That morning... 773 00:37:26,160 --> 00:37:27,640 JPMorgan Chase. JPMorgan Chase. 774 00:37:31,800 --> 00:37:35,120 OK. Stop saying "JPMorgan Chase". 775 00:37:37,000 --> 00:37:39,359 My hunch is good. 776 00:37:39,360 --> 00:37:40,840 It's just a meeting, you know & apos, right? 777 00:37:40,840 --> 00:37:41,920 Only meeting. It's like... 778 00:37:43,040 --> 00:37:44,640 Normal meeting. Okay? 779 00:37:44,680 --> 00:37:46,879 Drinking coffee, have a meeting. 780 00:37:46,880 --> 00:37:48,560 781 00:37:48,560 --> 00:37:49,960 - Brownfield Fund? - Yes! 782 00:37:49,961 --> 00:37:51,919 - Hey. Hello. - Ted. 783 00:37:51,920 --> 00:37:53,399 Chris. I'm Ted's staff. 784 00:37:53,400 --> 00:37:54,800 Chris. Okay. 785 00:37:54,800 --> 00:37:56,080 - I'm Charlie, Charlie Geller. - Charlie. 786 00:37:56,081 --> 00:37:57,759 - Jamie Shipley. Hi. - Jamie. 787 00:37:57,760 --> 00:38:00,799 We are very excited to be able to feel the atmosphere of the trading floor. 788 00:38:00,800 --> 00:38:02,040 Good. 789 00:38:02,040 --> 00:38:03,800 Please sit down first. 790 00:38:04,600 --> 00:38:05,600 OK. 791 00:38:06,680 --> 00:38:09,679 So, I... Ted asked me to do a preliminary meeting. 792 00:38:09,680 --> 00:38:13,120 But I can't find something that sells from you. 793 00:38:13,120 --> 00:38:15,040 We just moved here from Boulder. 794 00:38:15,041 --> 00:38:16,639 - Yeah. - Okay. 795 00:38:16,640 --> 00:38:19,079 Can you show the bidding document? 796 00:38:19,080 --> 00:38:22,199 Brownfield has its own funds. 797 00:38:22,200 --> 00:38:23,959 - This is our funds. - Yeah. 798 00:38:23,960 --> 00:38:25,839 How much are you managing? 799 00:38:25,840 --> 00:38:29,400 Of course. We currently manage $ 30 million. 800 00:38:29,400 --> 00:38:30,718 Um, but we started it 801 00:38:30,719 --> 00:38:32,160 4 years ago with only $ 110,000 in capital. 802 00:38:32,161 --> 00:38:33,519 Wow. 803 00:38:33,520 --> 00:38:38,239 So as you can see, it's a phenomenal profit. 804 00:38:38,240 --> 00:38:41,599 We want to get an ISDA deal with JPMorgan so we can 805 00:38:41,600 --> 00:38:44,160 make a deal in the long term. 806 00:38:44,160 --> 00:38:45,480 - That's so cool. - Yeah. 807 00:38:46,459 --> 00:38:53,237 ISDA Agreement: An agreement that allows an investor to occupy a "large child table" and can make high-level transactions that are not available to amateur traders. 808 00:38:53,797 --> 00:38:58,739 Trying to make a transaction without ISDA like try to win the Indy race using the Ilama car. 809 00:38:58,774 --> 00:39:00,279 Cool. 810 00:39:00,280 --> 00:39:01,599 Thank you. 811 00:39:01,600 --> 00:39:05,760 But you are still under capital requirements for ISDA. 812 00:39:05,760 --> 00:39:06,760 How much less? 813 00:39:07,360 --> 00:39:08,600 Uh... 814 00:39:08,600 --> 00:39:12,000 One billion four hundred seventy million, so... 815 00:39:13,000 --> 00:39:14,520 a lot. 816 00:39:15,800 --> 00:39:17,320 This makes us look bad, right & apos; right, 817 00:39:17,321 --> 00:39:20,600 because we don't know the minimum capital requirements? 818 00:39:20,600 --> 00:39:21,600 Uh... 819 00:39:22,160 --> 00:39:23,560 Not good. 820 00:39:24,080 --> 00:39:25,440 But, uh, 821 00:39:25,480 --> 00:39:27,999 continue your profit progress then 822 00:39:28,000 --> 00:39:29,879 contact us. That's how it is. 823 00:39:29,880 --> 00:39:30,960 OK? 824 00:39:30,960 --> 00:39:32,358 - Okay. - Thank you, Chris. 825 00:39:32,359 --> 00:39:33,438 Good luck, friend. 826 00:39:33,439 --> 00:39:34,480 Thank you, Chris. 827 00:39:38,760 --> 00:39:39,760 Damn! 828 00:39:40,920 --> 00:39:42,278 Who are the people who want to have a meeting? at 4:50 in the afternoon? 829 00:39:42,279 --> 00:39:43,400 ta-ga. 830 00:39:43,401 --> 00:39:44,479 That is very painful. 831 00:39:44,480 --> 00:39:46,319 Bro, B of A and Bear don't even reply to our phone. 832 00:39:46,320 --> 00:39:49,999 And even Wachovia 833 00:39:50,000 --> 00:39:52,280 - ignore us, friend! - I know. 834 00:39:52,280 --> 00:39:54,120 These are all prospectuses of all losers 835 00:39:54,121 --> 00:39:56,440 who did not manage to cross the lobby. 836 00:39:56,480 --> 00:39:58,238 I don't think I can do this anymore. 837 00:39:58,239 --> 00:40:00,200 I'm young. I can still do something with my life. 838 00:40:00,201 --> 00:40:03,120 839 00:40:03,120 --> 00:40:05,200 I miss Colorado. The reward is better. 840 00:40:06,160 --> 00:40:08,280 Gentlemen, we invite you out. 841 00:40:08,280 --> 00:40:09,758 Good, we will get out soon. Come on. 842 00:40:09,759 --> 00:40:11,000 See this. Look at this. 843 00:40:11,001 --> 00:40:12,400 This person 844 00:40:12,400 --> 00:40:15,360 say the property market is a giant bubble. 845 00:40:17,800 --> 00:40:19,960 Okay, this section is not entirely accurate. 846 00:40:19,960 --> 00:40:22,160 We didn't find Jared's instructions Vennett about the property bubble 847 00:40:22,161 --> 00:40:24,159 in the lobby of the bank that refused us. 848 00:40:24,160 --> 00:40:25,679 The reality is, um, 849 00:40:25,680 --> 00:40:28,640 a friend who tells Charlie, and I read it 850 00:40:28,640 --> 00:40:30,120 in the Grant Interest Rate Observer. 851 00:40:30,121 --> 00:40:31,559 This is crazy. 852 00:40:31,560 --> 00:40:34,159 It's crazy. 853 00:40:34,160 --> 00:40:36,879 Damn, he said the benefits of could reach 10 to 1 854 00:40:36,880 --> 00:40:40,639 with Bad Credit Swaps for guaranteed mortgage securities? 855 00:40:40,640 --> 00:40:44,000 And the overall property market will collapse? 856 00:40:44,000 --> 00:40:45,800 For Jamie and Charlie, predictions of destruction 857 00:40:45,801 --> 00:40:48,360 market properties like music in their ears. 858 00:40:55,880 --> 00:40:57,920 They start working in Jamie's garage 859 00:40:57,920 --> 00:40:59,920 with Jamie's savings of $ 110,000 860 00:40:59,921 --> 00:41:02,000 from a shipping business on the East Coast. 861 00:41:03,920 --> 00:41:05,800 Our investment strategy is simple. 862 00:41:05,800 --> 00:41:07,920 People aren't happy think bad things will happen, 863 00:41:07,921 --> 00:41:10,360 so they always underestimate the possibility. 864 00:41:10,361 --> 00:41:12,880 Their strategy is simple and brilliant. 865 00:41:13,400 --> 00:41:14,760 What he meant. 866 00:41:14,760 --> 00:41:17,320 Jamie and Charlie find a market that sells very cheap for things that are thought will never happen. 867 00:41:17,360 --> 00:41:19,638 So when they are wrong, is a small mistake, 868 00:41:19,639 --> 00:41:21,320 but when they are right, big is true. 869 00:41:21,321 --> 00:41:23,360 In a few years develop $ 110,000 to $ 30 million. 870 00:41:30,120 --> 00:41:33,960 But later the time moved to New York City. 871 00:41:33,960 --> 00:41:35,720 And so far, it hasn't gone smoothly. 872 00:41:35,721 --> 00:41:38,440 873 00:41:38,440 --> 00:41:40,280 Although this seems interesting... 874 00:41:40,281 --> 00:41:43,760 No bank wants to give us ISDA. We have fleas. 875 00:41:45,280 --> 00:41:47,760 Transactions like this are clear we cannot do. 876 00:41:47,761 --> 00:41:49,400 We must contact Ben. 877 00:41:51,600 --> 00:41:53,960 Let's call Ben! 878 00:41:53,960 --> 00:41:56,158 Ben Rickert is a former trader in Singapore 879 00:41:56,159 --> 00:41:58,960 work for Chase and stop because he feels disgusted with this business. 880 00:41:59,000 --> 00:42:01,398 Previously he was a neighbor of Jamie when they were still in Colorado 881 00:42:01,399 --> 00:42:03,640 and they meet when takes his dog for a walk. 882 00:42:03,641 --> 00:42:05,200 But Ben is somber. 883 00:42:05,240 --> 00:42:07,360 According to him not only the whole system will fall. 884 00:42:07,361 --> 00:42:09,560 He thinks the whole world will collapse. 885 00:42:11,640 --> 00:42:13,680 All of these vegetables are immediately taken from my garden. 886 00:42:16,200 --> 00:42:17,680 You have to start planting in your own garden. 887 00:42:17,681 --> 00:42:21,120 - All you have to do is get rid of petrochemicals from your soil. - Hmm. 888 00:42:21,120 --> 00:42:23,398 I use wood ash and urine to help the soil regain fertility. 889 00:42:23,399 --> 00:42:25,078 Both things create ammonium nitrate. 890 00:42:25,079 --> 00:42:26,960 Seeds will be a new currency unit. 891 00:42:26,961 --> 00:42:29,039 And not Franken seed from Monsanto. 892 00:42:29,040 --> 00:42:31,720 What I mean is seeds good, healthy and organic. 893 00:42:31,720 --> 00:42:32,998 You guys make your own garden. 894 00:42:32,999 --> 00:42:34,478 - Learn to live from the ground. - You're a weirdo. 895 00:42:34,479 --> 00:42:36,760 Ben has a lot of experience at big banks. 896 00:42:36,761 --> 00:42:40,560 Jamie and Charlie never even entered the bank toilet in Manhattan. 897 00:42:40,560 --> 00:42:42,318 But Ben doesn't want to be related to the banking world. 898 00:42:42,319 --> 00:42:43,718 He is very clean. 899 00:42:43,719 --> 00:42:45,398 Okay, we press any number 900 00:42:45,399 --> 00:42:47,878 maybe we can do calculations later after we talk about Ben. 901 00:42:47,879 --> 00:42:48,998 We always do the calculations. 902 00:42:48,999 --> 00:42:50,118 When do we not do calculations? 903 00:42:50,119 --> 00:42:51,278 We do more careful calculations... 904 00:42:51,279 --> 00:42:52,318 Please you can get out. 905 00:42:52,319 --> 00:42:53,438 Of course. Just a minute. 906 00:42:53,439 --> 00:42:54,440 Good ma'am. We go. 907 00:42:57,360 --> 00:42:59,840 Oh God. I hate doing this. It's just a waste of time. 908 00:42:59,841 --> 00:43:02,919 Oh come on. Can you just relax? 909 00:43:02,920 --> 00:43:06,159 45 minutes from the city there is property development. 910 00:43:06,160 --> 00:43:08,080 Mark wants us to check it out. 911 00:43:08,080 --> 00:43:10,200 I hope there is a Cuban restaurant in all the way there. 912 00:43:10,201 --> 00:43:12,879 Because I hear Cuban cuisine in Miami it feels great. 913 00:43:12,880 --> 00:43:15,680 Please do not giggle while I feel miserable. 914 00:43:15,680 --> 00:43:17,440 That makes me really hate you. 915 00:43:17,441 --> 00:43:19,960 What is the connection to want to eat good food with giggles? 916 00:43:21,680 --> 00:43:22,880 Hello? 917 00:43:24,280 --> 00:43:25,520 Hello? 918 00:43:26,320 --> 00:43:27,680 How much is the price? 919 00:43:29,320 --> 00:43:31,040 Each of $ 425,000? 920 00:43:52,880 --> 00:43:54,558 How are you friends? What do you need? 921 00:43:54,559 --> 00:43:56,280 Hello. I am doing a survey to the mortgage owner 922 00:43:56,281 --> 00:43:57,959 who has neglected to pay 90 days. 923 00:43:57,960 --> 00:44:00,600 I'm looking for Harvey Humpsey. 924 00:44:00,600 --> 00:44:01,760 Are you looking for a dog the owner of the house? 925 00:44:03,920 --> 00:44:05,480 This homeowner fills up a mortgage application 926 00:44:05,481 --> 00:44:08,039 use the name of the dog? 927 00:44:08,040 --> 00:44:09,559 I think so. 928 00:44:09,560 --> 00:44:12,160 Wait, the bastard doesn't pay the mortgage? 929 00:44:12,160 --> 00:44:13,600 The problem is that I've paid the rent. 930 00:44:13,601 --> 00:44:15,879 Yes, he failed to pay for 90 days. 931 00:44:15,880 --> 00:44:17,520 Seriously friend, 932 00:44:17,520 --> 00:44:19,440 Do I have to leave this house? 933 00:44:21,840 --> 00:44:24,320 My child has just adapted at school, friend. 934 00:44:24,320 --> 00:44:26,480 Hey. How are you? 935 00:44:27,160 --> 00:44:28,479 My name is Ken. 936 00:44:28,480 --> 00:44:29,760 Are you Ken? 937 00:44:29,760 --> 00:44:31,638 Um, you have to talk about the matter to the homeowner. 938 00:44:31,639 --> 00:44:33,240 Sorry, I don't have more information than that. 939 00:44:33,241 --> 00:44:35,280 But you, um... 940 00:44:35,280 --> 00:44:36,920 Have a nice day. Bye, Ken. 941 00:44:36,921 --> 00:44:38,439 There are books everywhere! 942 00:44:38,440 --> 00:44:40,759 Books everywhere? 943 00:44:40,760 --> 00:44:44,119 Will everything be okay? 944 00:44:44,120 --> 00:44:47,280 You... You have to call him. 945 00:44:47,280 --> 00:44:48,398 You have to call it. 946 00:44:48,399 --> 00:44:50,160 This is not my fault, friend. I've paid rent... 947 00:44:53,960 --> 00:44:55,040 Hello! 948 00:44:58,960 --> 00:45:01,160 It looks like Mary Celeste. 949 00:45:01,160 --> 00:45:03,920 Listen. All they take is TV. 950 00:45:04,720 --> 00:45:06,720 This is weird. 951 00:45:06,720 --> 00:45:09,080 They don't even clear the cat litter. 952 00:45:17,640 --> 00:45:18,680 Oh God. 953 00:45:30,320 --> 00:45:32,320 It's like Chernobyl. 954 00:45:32,320 --> 00:45:35,720 There are hundreds of homes. It's impossible only 4 people live here. 955 00:45:37,760 --> 00:45:38,920 Oh, fuck it! 956 00:45:38,920 --> 00:45:39,920 Damn! 957 00:45:54,840 --> 00:45:56,080 He's been there for 7 hours. 958 00:45:56,081 --> 00:45:58,280 How do you want to go to the toilet? 959 00:45:58,280 --> 00:45:59,440 I heard he had a problem. 960 00:45:59,441 --> 00:46:01,519 He empties reserve funds. 961 00:46:01,520 --> 00:46:03,079 My friends in Manhattan say... 962 00:46:03,080 --> 00:46:04,960 Dr. Office Burry. 963 00:46:04,960 --> 00:46:06,680 No, he prefers if you send it an email. 964 00:46:06,681 --> 00:46:08,280 Excuse me. 965 00:46:08,280 --> 00:46:09,280 Mr. Fields, Mr.... 966 00:46:13,440 --> 00:46:15,200 - Hi, Lawrence. - Gosh! 967 00:46:16,800 --> 00:46:20,440 We are not sure of your ability to see 968 00:46:20,440 --> 00:46:24,360 macroeconomic trends. 969 00:46:24,400 --> 00:46:26,999 You came here only to say that? Why? 970 00:46:27,000 --> 00:46:30,480 Everyone can see bubbles in the property field. 971 00:46:30,480 --> 00:46:32,400 Actually, no people see it. 972 00:46:32,440 --> 00:46:33,720 That's why it's called a bubble. 973 00:46:33,721 --> 00:46:36,080 That's stupid, Lawrence. 974 00:46:36,080 --> 00:46:37,680 There are always signs. 975 00:46:38,440 --> 00:46:40,959 Darkening mortgages 976 00:46:40,960 --> 00:46:42,839 has quadrupled since 2000 977 00:46:42,840 --> 00:46:45,760 and flat salary average, 978 00:46:45,760 --> 00:46:47,280 but house prices are soaring. 979 00:46:47,320 --> 00:46:49,479 That means home is debt, not asset. 980 00:46:49,480 --> 00:46:52,679 So Mike Burry from San Jose, man 981 00:46:52,680 --> 00:46:56,159 who cuts his hair at Supercuts and doesn't wear shoes, 982 00:46:56,160 --> 00:46:59,199 better than Alan Greenspan and Hank Paulson. 983 00:46:59,200 --> 00:47:00,920 Yaaa... 984 00:47:00,920 --> 00:47:03,520 Dr. Mike Burry, yes, that's how it is. 985 00:47:04,760 --> 00:47:06,640 Funny. Very funny. 986 00:47:06,640 --> 00:47:08,960 Are you taunting us, Mike? 987 00:47:12,080 --> 00:47:13,599 Lawrence, 988 00:47:13,600 --> 00:47:16,760 I don't know how to mock. 989 00:47:16,760 --> 00:47:19,520 I don't know how to be funny. I don't know how to 990 00:47:20,200 --> 00:47:21,759 cooperate with people. 991 00:47:21,760 --> 00:47:22,999 I... 992 00:47:23,000 --> 00:47:25,440 I only know how to read numbers. 993 00:47:25,440 --> 00:47:27,960 How big is the short position now? 994 00:47:28,320 --> 00:47:29,440 Um... 995 00:47:29,440 --> 00:47:31,000 Only $ 1.3 billion. 996 00:47:31,600 --> 00:47:33,119 And the premium? 997 00:47:33,120 --> 00:47:34,879 We pay, uh, 998 00:47:34,880 --> 00:47:38,359 around $ 80 to 90 million 999 00:47:38,360 --> 00:47:39,920 every year, it's quite high, 1000 00:47:39,920 --> 00:47:42,040 but I am the first times to do this transaction. 1001 00:47:42,041 --> 00:47:45,639 Pay attention. The funds will return. Maybe it's early, but I'm not wrong. 1002 00:47:45,640 --> 00:47:48,799 That's the same thing. The same thing, Mike! 1003 00:47:48,800 --> 00:47:53,480 You manage funds of $ 555 million? 1004 00:47:53,480 --> 00:47:56,960 In 6 years, everything will disappear. 1005 00:47:57,760 --> 00:47:59,319 In one bet. 1006 00:47:59,320 --> 00:48:02,559 No, the second quarter of 2007 is time the adjusted interest rate will increase. 1007 00:48:02,560 --> 00:48:04,159 Bad credit will soar. 1008 00:48:04,160 --> 00:48:05,919 Yes. That's what you think. 1009 00:48:05,920 --> 00:48:08,480 How much should we provide if they withdraw an agreement? 1010 00:48:08,480 --> 00:48:10,400 Approximately 2 quarters ahead. 1011 00:48:11,120 --> 00:48:13,120 If your investor panics. 1012 00:48:16,640 --> 00:48:17,760 $ 302 million? 1013 00:48:17,760 --> 00:48:18,760 I... 1014 00:48:19,680 --> 00:48:21,280 Oh God, Mike. 1015 00:48:26,120 --> 00:48:28,120 There will be no agreement. Because it will kill yourself. 1016 00:48:28,121 --> 00:48:30,680 I mean, its value is down 17% this year. 1017 00:48:30,680 --> 00:48:33,040 But if they believe me, and they believe, because... 1018 00:48:33,041 --> 00:48:35,759 Nobody believes in you! There is no! 1019 00:48:35,760 --> 00:48:38,280 I sent several emails to my investors 1020 00:48:38,280 --> 00:48:40,360 I told them... 1021 00:48:41,960 --> 00:48:44,520 that the second quarter of 2007 is 1022 00:48:44,520 --> 00:48:46,960 it's time our position gives a profit and... 1023 00:48:48,360 --> 00:48:50,399 I'm very sure. 1024 00:48:50,400 --> 00:48:53,799 People will withdraw the money. 1025 00:48:53,800 --> 00:48:57,359 Lawrence, it's very stupid. I mean, 1026 00:48:57,360 --> 00:49:01,319 if capital funds decrease too far, 1027 00:49:01,320 --> 00:49:04,479 the swap contract will be canceled. 1028 00:49:04,480 --> 00:49:07,840 And then the bank may take all collateral. 1029 00:49:07,840 --> 00:49:09,000 Wait a minute. Wait. 1030 00:49:09,001 --> 00:49:10,159 Everything. 1031 00:49:10,160 --> 00:49:12,400 Is the contract canceled? 1032 00:49:12,400 --> 00:49:14,160 Is the contract canceled? 1033 00:49:14,880 --> 00:49:17,000 Damn! 1034 00:49:17,000 --> 00:49:18,000 Oh, fucker! 1035 00:49:18,640 --> 00:49:20,560 Michael? 1036 00:49:20,560 --> 00:49:22,240 Return my money. 1037 00:49:25,640 --> 00:49:29,040 Michael, do you hear? I want my money back. 1038 00:49:31,520 --> 00:49:33,840 Return my money... 1039 00:49:34,920 --> 00:49:37,239 fucker. 1040 00:49:37,240 --> 00:49:40,479 At the moment the middle market experiences a little anxiety. 1041 00:49:40,480 --> 00:49:42,800 Everyone says, "Okay, that's crazy. when it was 18 months ago. 1042 00:49:42,800 --> 00:49:44,680 1043 00:49:46,560 --> 00:49:50,399 1044 00:49:50,400 --> 00:49:52,679 1045 00:49:52,680 --> 00:49:55,999 1046 00:49:56,000 --> 00:49:59,040 This couple bought it for $ 650,000 last year. 1047 00:49:59,040 --> 00:50:00,960 He will release it at that price. 1048 00:50:00,961 --> 00:50:02,719 Hi, John. 1049 00:50:02,720 --> 00:50:04,360 No, no. 1050 00:50:04,360 --> 00:50:05,880 He regrets it, but he will release it. 1051 00:50:05,881 --> 00:50:07,719 Why did he sell it? 1052 00:50:07,720 --> 00:50:10,519 Currently both of them don't work. 1053 00:50:10,520 --> 00:50:13,279 Marlene, you said they were motivated, right? 1054 00:50:13,280 --> 00:50:16,360 Motivated like if in this environment. 1055 00:50:16,360 --> 00:50:18,960 The house on the left, I say they are motivated. 1056 00:50:19,000 --> 00:50:20,998 Wow, it seems like a lot of people are motivated. 1057 00:50:20,999 --> 00:50:22,400 Oh, the situation is only temporary. 1058 00:50:22,401 --> 00:50:24,199 That's all. Only... 1059 00:50:24,200 --> 00:50:25,720 Temporary anxiety. 1060 00:50:25,720 --> 00:50:27,440 So what is the decision? 1061 00:50:28,640 --> 00:50:31,200 I have to talk to my wife. Um... 1062 00:50:31,200 --> 00:50:32,598 This price will not last long. 1063 00:50:32,599 --> 00:50:34,478 Actually, can I talk to a mortgage broker? 1064 00:50:34,479 --> 00:50:36,360 Who do you recommend? Anyone you like. 1065 00:50:36,361 --> 00:50:38,480 Yes, yes, there is someone. Of course. 1066 00:50:38,480 --> 00:50:39,800 Yeah, PSK is better than me. 1067 00:50:39,801 --> 00:50:41,240 I send them to Cabo. 1068 00:50:42,680 --> 00:50:45,520 So does Morgan Stanley ask us to join? Is that so? 1069 00:50:45,560 --> 00:50:48,600 Oh no. No. They manage our funds, 1070 00:50:48,600 --> 00:50:49,760 but we are not part of them. 1071 00:50:49,761 --> 00:50:52,319 We invest in financial service companies 1072 00:50:52,320 --> 00:50:55,359 and we are trying to understand the business of mortgage where to live. 1073 00:50:55,360 --> 00:50:58,399 How many loan credits do you withdraw every month? 1074 00:50:58,400 --> 00:51:00,040 - Around 60. - Yes. 1075 00:51:00,040 --> 00:51:01,480 How many years ago? 1076 00:51:02,440 --> 00:51:03,839 Ten... 1077 00:51:03,840 --> 00:51:05,200 Maybe fifteen. 1078 00:51:05,200 --> 00:51:07,560 Yes, I used to be a bartender. Now I have my own ship. 1079 00:51:07,561 --> 00:51:08,679 You have... 1080 00:51:08,680 --> 00:51:11,920 How many of them are mortgages with adjusted interest? 1081 00:51:11,920 --> 00:51:13,680 - Most. - Oh, yes. 1082 00:51:13,720 --> 00:51:15,719 Maybe around 90%. 1083 00:51:15,720 --> 00:51:18,960 Bonuses for housing like that are very high a few years ago. 1084 00:51:18,960 --> 00:51:20,320 Adjustable interest rates are our favorite. 1085 00:51:20,360 --> 00:51:22,960 Are there applicants who are rejected? 1086 00:51:27,200 --> 00:51:29,320 Your question is serious? 1087 00:51:29,320 --> 00:51:31,438 Listen, if they are rejected, means I'm bad at work. 1088 00:51:31,439 --> 00:51:33,040 Even if they don't have money? 1089 00:51:33,041 --> 00:51:36,039 My firm offers NINJA loans. 1090 00:51:36,040 --> 00:51:37,320 OK. 1091 00:51:37,320 --> 00:51:38,838 "No Income, No Job." (No income, no work) 1092 00:51:38,839 --> 00:51:41,080 If I want, I leave it alone income points are not filled. 1093 00:51:41,081 --> 00:51:42,439 The company doesn't care. 1094 00:51:42,440 --> 00:51:45,840 These people just want a home. And they go with the flow. 1095 00:51:45,840 --> 00:51:46,880 Good for you. 1096 00:51:46,920 --> 00:51:47,920 Your company didn't check it? 1097 00:51:51,680 --> 00:51:54,560 If I enter the application on Friday afternoon, 1098 00:51:54,560 --> 00:51:56,560 big banks will buy it on Monday afternoon. 1099 00:51:57,080 --> 00:51:58,400 Yeah. Same with me. 1100 00:52:00,200 --> 00:52:01,720 Can you wait a minute? 1101 00:52:01,720 --> 00:52:03,080 Yes. 1102 00:52:08,760 --> 00:52:11,479 I don't understand. Why did they confess? 1103 00:52:11,480 --> 00:52:13,600 They don't confess. 1104 00:52:13,600 --> 00:52:15,280 They boast. 1105 00:52:24,000 --> 00:52:28,959 Do these people understand what they buy? 1106 00:52:28,960 --> 00:52:31,320 I focus on immigrants. 1107 00:52:31,320 --> 00:52:32,798 After they know they can get home, 1108 00:52:32,799 --> 00:52:34,480 they are signatures wherever you tell them. 1109 00:52:34,481 --> 00:52:36,719 Don't ask. Don't understand interest rates. 1110 00:52:36,720 --> 00:52:38,239 - Stupid basis. - Yes. 1111 00:52:38,240 --> 00:52:39,760 And you also focus on immigrants? 1112 00:52:39,760 --> 00:52:42,680 For them the ability to pay is less bad. 1113 00:52:44,480 --> 00:52:46,160 Look, I'm a person who likes profits. 1114 00:52:46,680 --> 00:52:48,800 Okay... 1115 00:52:48,800 --> 00:52:52,280 I make $ 2,000 for loans prime with fixed interest rates, okay? 1116 00:52:52,320 --> 00:52:55,999 But I can make $ 10,000 for pinjman subprima adjusted interest rates. 1117 00:52:56,000 --> 00:52:59,079 Believe me, I don't want to ride a BMW 7 Series car without strippers. 1118 00:52:59,080 --> 00:53:02,439 In the collection there is no one whose reputation is good but they have a lot of money. 1119 00:53:02,440 --> 00:53:05,279 I think I've read Warren Buffett said things like that. 1120 00:53:05,280 --> 00:53:08,039 What? Who is Warren Buffett? 1121 00:53:08,040 --> 00:53:10,839 Okay, be a stripper. Do you mean exotic dancers? 1122 00:53:10,840 --> 00:53:12,159 Yeah, yeah, yeah. 1123 00:53:12,160 --> 00:53:14,200 Naked, you know, without clothes. 1124 00:53:14,200 --> 00:53:16,040 - Strippers. - Yes. 1125 00:53:19,640 --> 00:53:20,880 Can you introduce us? 1126 00:53:20,881 --> 00:53:23,440 Yes! Yes. 1127 00:53:25,400 --> 00:53:28,399 I always get customized payment options. I'm a personal contractor. 1128 00:53:28,400 --> 00:53:30,160 What? I did not hear. Sorry. 1129 00:53:30,160 --> 00:53:32,080 I always get options adjusted payments. 1130 00:53:32,081 --> 00:53:34,399 I'm a personal contractor. I need flexibility. 1131 00:53:34,400 --> 00:53:37,080 And you claim what your job is to a mortgage company? 1132 00:53:37,080 --> 00:53:39,160 I wrote "therapist". 1133 00:53:39,200 --> 00:53:40,640 - You can touch me. - Always? 1134 00:53:41,240 --> 00:53:42,400 Only in the V.I.P room. 1135 00:53:42,401 --> 00:53:45,080 No, no, you said always get adjustments. 1136 00:53:45,080 --> 00:53:46,998 And you have more than one property credit? 1137 00:53:46,999 --> 00:53:49,240 Everyone, too. At least in this place. 1138 00:53:49,241 --> 00:53:50,359 Sorry, what? 1139 00:53:50,360 --> 00:53:53,040 Everyone, too. At least in this place. 1140 00:53:53,040 --> 00:53:55,278 That way you only need to pay about 5%. 1141 00:53:55,279 --> 00:53:57,160 The tariff is currently rising, you know? 1142 00:53:57,161 --> 00:53:59,080 Yes. But that is only temporary. 1143 00:53:59,080 --> 00:54:02,760 Can you not move first? I will still pay you. 1144 00:54:06,560 --> 00:54:09,359 Sorry. Some people pay attention. 1145 00:54:09,360 --> 00:54:12,080 Okay, listen. If home prices don't rise, 1146 00:54:12,080 --> 00:54:14,440 you will not be able to file refinancing. 1147 00:54:14,441 --> 00:54:17,679 And you will continue to pay monthly bills like now 1148 00:54:17,680 --> 00:54:20,799 after the promotional interest rate is no longer valid. 1149 00:54:20,800 --> 00:54:23,240 Your monthly interest can go up to 200% -300%. 1150 00:54:23,240 --> 00:54:25,400 James says whenever I can apply for refinancing. 1151 00:54:25,401 --> 00:54:27,279 He is a liar. 1152 00:54:27,280 --> 00:54:30,479 Actually, especially in this case, James might be wrong. 1153 00:54:30,480 --> 00:54:33,880 200 percent? For all my loans? 1154 00:54:33,880 --> 00:54:35,318 What do you mean by "all" loans? 1155 00:54:35,319 --> 00:54:37,760 Aren't we talking about 2 loans at one house? 1156 00:54:38,560 --> 00:54:40,640 I have five houses. 1157 00:54:40,640 --> 00:54:42,600 And a condo. 1158 00:54:44,480 --> 00:54:46,080 Hey, there's a bubble on the market. 1159 00:54:46,080 --> 00:54:47,320 Where do you know? 1160 00:54:47,321 --> 00:54:50,639 Trust me. Contact Vennett, buy $ 50 million Swaps for SBM. 1161 00:54:50,640 --> 00:54:53,679 What do we want to buy? Garibaldi IV, BBB. 1162 00:54:53,680 --> 00:54:55,239 Mark, are you sure? 1163 00:54:55,240 --> 00:54:57,199 Yes. Yes, it's time we do it. 1164 00:54:57,200 --> 00:54:58,600 Do what? 1165 00:54:58,600 --> 00:54:59,880 Everything. 1166 00:55:24,000 --> 00:55:25,680 FrontPoint! FrontPoint! 1167 00:55:27,520 --> 00:55:29,440 Is this protection of American funds? 1168 00:55:29,441 --> 00:55:31,560 Good, listen. One last question. 1169 00:55:32,720 --> 00:55:34,560 How do you cheat us? 1170 00:55:36,400 --> 00:55:38,000 There are better ways for to say that, Vinnie. 1171 00:55:38,001 --> 00:55:39,639 I'm serious. 1172 00:55:39,640 --> 00:55:42,799 We will buy swaps from you, but only if you say how you cheat us. 1173 00:55:42,800 --> 00:55:45,399 I didn't trick you, Vinnie. I give you profit. 1174 00:55:45,400 --> 00:55:48,239 I tell you sincerely, Vinnie. 1175 00:55:48,240 --> 00:55:51,639 I give you a beneficial agreement in this century directly in front of your eyes. 1176 00:55:51,640 --> 00:55:54,120 What do I get from it? Easy. 1177 00:55:54,120 --> 00:55:56,600 The balance of $ 20 million with the option negative carry one month. 1178 00:55:56,601 --> 00:55:58,039 My boss scolded me 1179 00:55:58,040 --> 00:56:00,599 because he thinks I'm crazy. 1180 00:56:00,600 --> 00:56:01,640 OK? 1181 00:56:01,640 --> 00:56:02,840 We do this transaction, 1182 00:56:02,841 --> 00:56:05,240 the problem won't be too big anymore. 1183 00:56:05,280 --> 00:56:09,079 And of course, the swap is a black market, so I set the price. 1184 00:56:09,080 --> 00:56:10,680 Whatever price I want. 1185 00:56:10,680 --> 00:56:12,200 And when you want to take your payment, 1186 00:56:12,201 --> 00:56:15,520 You will be wide-eyed, I will give you big profits. 1187 00:56:15,520 --> 00:56:17,118 The good news, Vinnie, you don't want to be concerned about my reward 1188 00:56:17,119 --> 00:56:19,398 because you will generate very large profits. 1189 00:56:19,399 --> 00:56:20,798 That's my honors for this transaction. 1190 00:56:20,799 --> 00:56:22,280 Do you want to know what you got? 1191 00:56:22,281 --> 00:56:25,760 You get ice cream, hot fudge, bananas, and nuts. 1192 00:56:25,760 --> 00:56:27,600 Right now, I can sprinkle brown, and yes, 1193 00:56:27,601 --> 00:56:30,320 If this continues, I get the cherry. 1194 00:56:30,320 --> 00:56:32,600 But you got the sundae, Vinnie. 1195 00:56:32,640 --> 00:56:34,280 You got the sundae. 1196 00:56:36,720 --> 00:56:39,599 Well, I'll take it. thanks. 1197 00:56:39,600 --> 00:56:41,880 So what? 1198 00:56:41,880 --> 00:56:43,840 - Do you want me to take care of it? - Yes. 1199 00:56:43,841 --> 00:56:47,320 We take $ 50 million, Garibaldi IV, BBB. 1200 00:56:48,760 --> 00:56:50,840 Prepare your pencil. The document will be ready soon. 1201 00:56:53,560 --> 00:56:55,080 Damn. 1202 00:56:57,040 --> 00:56:58,560 Yes! 1203 00:57:00,680 --> 00:57:01,760 That's right. 1204 00:57:03,600 --> 00:57:05,600 Oh my goodness. 1205 00:57:05,640 --> 00:57:09,960 He has many numbers, and I always forget 1206 00:57:09,960 --> 00:57:11,638 which number he set, because he is very specific. 1207 00:57:11,639 --> 00:57:12,958 Start with this one. 1208 00:57:12,959 --> 00:57:14,280 Maybe this isn't the first. 1209 00:57:14,281 --> 00:57:15,680 Try it. 1210 00:57:15,680 --> 00:57:17,240 Okay... I... okay. 1211 00:57:34,880 --> 00:57:36,320 Ben Rickert. 1212 00:57:36,320 --> 00:57:37,600 Hey, Ben. This is Jamie. 1213 00:57:39,160 --> 00:57:41,440 Jamie, you know you should not use this network. 1214 00:57:43,480 --> 00:57:44,760 I told you & apos; 1215 00:57:46,120 --> 00:57:48,800 Okay, let's try the second number of total 14. 1216 00:58:00,360 --> 00:58:01,479 Ben Rickert. 1217 00:58:01,480 --> 00:58:03,560 Ben, why are you doing it, friend? I mean... 1218 00:58:03,560 --> 00:58:06,078 You're a retired trader & right? Nobody hears your phone. 1219 00:58:06,079 --> 00:58:07,838 NSA has $ 52 billion in funds and 1220 00:58:07,839 --> 00:58:09,320 1221 00:58:09,321 --> 00:58:11,759 to observe tens of millions of phone calls every second. 1222 00:58:11,760 --> 00:58:14,640 Do you think they don't use it? 1223 00:58:14,640 --> 00:58:16,840 "Ben Rickert" and "dirty bomb" in one sentence... 1224 00:58:18,680 --> 00:58:20,440 - Astagaaaa. - Sorry friend. 1225 00:58:22,000 --> 00:58:23,280 Ben Rickert. 1226 00:58:23,280 --> 00:58:25,680 Do you have a chance to see what we sent, Ben? 1227 00:58:25,681 --> 00:58:28,600 This is Charlie. I'm here too. 1228 00:58:28,600 --> 00:58:30,920 Hi, Charlie. Yeah, I have time. Wait. 1229 00:58:36,920 --> 00:58:38,160 Ben, are you still connected? 1230 00:58:38,161 --> 00:58:39,240 Yes. 1231 00:58:40,000 --> 00:58:42,159 I will be honest friends. 1232 00:58:42,160 --> 00:58:44,200 This scares me. 1233 00:58:44,200 --> 00:58:45,640 But that's a good thing & isn't it? 1234 00:58:45,641 --> 00:58:48,440 That means the Vennet is not wrong. 1235 00:58:49,160 --> 00:58:50,240 No, he's not wrong. 1236 00:58:52,960 --> 00:58:54,040 Good. 1237 00:58:54,040 --> 00:58:55,680 Tell me more about this CDO. 1238 00:58:55,681 --> 00:58:59,560 Yes, yes. Okay, Vennett calls CDO, 1239 00:58:59,560 --> 00:59:01,198 but actually, we note in more detail 1240 00:59:01,199 --> 00:59:02,920 and it turns out to be worse than he expected. 1241 00:59:02,921 --> 00:59:04,440 This doesn't make sense! 1242 00:59:04,440 --> 00:59:05,760 We can't even model it. 1243 00:59:05,761 --> 00:59:08,559 This is 100 times greater than SBM. 1244 00:59:08,560 --> 00:59:10,240 And with a 90% AAA rating. 1245 00:59:10,240 --> 00:59:12,118 - Yes! Exactly! - More than 90%. 1246 00:59:12,119 --> 00:59:13,320 This is amazing. 1247 00:59:13,321 --> 00:59:17,199 I pay attention to the details of the CDO that you want to position short. 1248 00:59:17,200 --> 00:59:20,319 Brilliant. Worthless. Really rubbish. 1249 00:59:20,320 --> 00:59:22,559 Jamie. Very good. 1250 00:59:22,560 --> 00:59:26,119 What do I have to say? I'm really good at looking for bad things. 1251 00:59:26,120 --> 00:59:28,999 Ben, we installed short positions for BB and BBB ratings, 1252 00:59:29,000 --> 00:59:31,120 and the risk is relatively low. 1253 00:59:31,120 --> 00:59:32,520 The advantage is around 25 to 1. 1254 00:59:32,521 --> 00:59:33,800 Yes. 1255 00:59:36,120 --> 00:59:38,320 Okay, so why did you contact me? I don't do anything like this anymore. 1256 00:59:38,321 --> 00:59:39,520 Look Ben? 1257 00:59:40,800 --> 00:59:44,639 We want you to help we get ISDA. 1258 00:59:44,640 --> 00:59:47,800 If we can get the license, we can do the transaction. 1259 00:59:47,800 --> 00:59:49,118 And we know that you hate Wall Street. 1260 00:59:49,119 --> 00:59:50,400 We don't ask you to make a transaction. 1261 00:59:50,401 --> 00:59:54,400 We just want you to help we get a seat 1262 00:59:54,440 --> 00:59:57,640 on the Wall Street stage. 1263 00:59:57,640 --> 00:59:59,640 That's a bad place, guys. 1264 00:59:59,680 --> 01:00:04,759 Look, Ben, the system is very very messy, okay? 1265 01:00:04,760 --> 01:00:07,159 And somehow, 1266 01:00:07,160 --> 01:00:10,160 we know that before people realize it. 1267 01:00:10,160 --> 01:00:13,120 Do you know? This is a golden opportunity that doesn't come 2x for life. 1268 01:00:15,680 --> 01:00:16,680 I'm considering. 1269 01:00:21,800 --> 01:00:23,799 OK. I will contact Deutsche Bank. 1270 01:00:23,800 --> 01:00:26,119 Thank you, Ben. thanks. 1271 01:00:26,120 --> 01:00:30,040 Dan Bear. What about Bear? They have some inappropriate products. 1272 01:00:30,040 --> 01:00:32,360 OK. Bear wants to transact with anyone. 1273 01:01:20,520 --> 01:01:23,360 OK. I'll work the way. 1274 01:01:23,360 --> 01:01:25,200 Thank you, Noah. Thank you to Jared. 1275 01:01:27,160 --> 01:01:28,480 Can we enter? 1276 01:01:28,480 --> 01:01:29,680 Yes me too. 1277 01:01:50,270 --> 01:01:52,925 Truth like poetry. 1278 01:01:53,537 --> 01:01:59,309 And most people hate poetry. Talk in a Washington D.C bar. 1279 01:02:13,840 --> 01:02:16,240 Hi. This is Mark. I want to talk to with Vinnie, right now. 1280 01:02:16,241 --> 01:02:19,839 We just want you to explain to us 1281 01:02:19,840 --> 01:02:22,360 It looks like you cheated us, 1282 01:02:22,360 --> 01:02:23,600 because what we see... 1283 01:02:26,520 --> 01:02:28,759 Morgan Stanley Building, as soon as possible. 1284 01:02:28,760 --> 01:02:31,320 Do we both see the same screen? 1285 01:02:31,320 --> 01:02:33,200 This doesn't make sense. 1286 01:02:35,840 --> 01:02:37,280 Vinnie, are you there? 1287 01:02:37,720 --> 01:02:38,798 Mark, are you there? 1288 01:02:38,799 --> 01:02:39,838 Yes, you can hear? 1289 01:02:39,839 --> 01:02:41,678 Mortgage bad loans are very high. 1290 01:02:41,679 --> 01:02:43,238 Have anyone killed yourself? 1291 01:02:43,239 --> 01:02:45,480 Why do they want to do that? Prices of Subprime Mortgage securities rise. 1292 01:02:45,481 --> 01:02:46,719 What? 1293 01:02:46,720 --> 01:02:50,040 Vennett wants another $ 1.9 million to be used as collateral. 1294 01:02:50,040 --> 01:02:51,400 Vennett asks us to add collateral. 1295 01:02:51,401 --> 01:02:52,880 What happened? 1296 01:02:52,880 --> 01:02:54,918 We don't know, but Deutsche is in the middle of calling and wants payment. 1297 01:02:54,919 --> 01:02:56,840 Contact Vennett. Contact the damn thing. 1298 01:02:56,841 --> 01:02:58,919 Contact him Vennett. Tell him to come here. 1299 01:02:58,920 --> 01:03:00,760 So subprime loans deteriorate, 1300 01:03:00,760 --> 01:03:02,438 but subprime securities, which actually consists of 1301 01:03:02,439 --> 01:03:04,078 from subprime loans, turns out to be more valuable? 1302 01:03:04,079 --> 01:03:06,640 I know. They want another $ 1.9 million _ at the latest when the market closes. 1303 01:03:06,641 --> 01:03:08,879 What about rating agents? Moody & sos; s, S & P... 1304 01:03:08,880 --> 01:03:11,400 They do not reduce the rating of CDO and mortgage securities? 1305 01:03:11,400 --> 01:03:12,560 What is their rating position? 1306 01:03:12,561 --> 01:03:14,159 Everything is the same. 1307 01:03:14,160 --> 01:03:15,679 The rating is still AAA. 1308 01:03:15,680 --> 01:03:18,280 What exactly is this? Are they kidding? 1309 01:03:18,280 --> 01:03:20,440 Fucker! Basic fucker rating agent! 1310 01:03:20,480 --> 01:03:21,998 They announce it to the public, and what they care about 1311 01:03:21,999 --> 01:03:23,480 is only the lower limit and their own interests. 1312 01:03:23,481 --> 01:03:25,320 Hey, Mark, not only that. 1313 01:03:25,320 --> 01:03:26,718 Risk Staff from Morgan Stanley is here. 1314 01:03:26,719 --> 01:03:28,158 They asked Kathy Tao to come. 1315 01:03:28,159 --> 01:03:30,398 They persuaded him to ask us to sell our swaps. 1316 01:03:30,399 --> 01:03:32,718 It seems, comparing insurance payments for 6 years 1317 01:03:32,719 --> 01:03:34,558 with the hope of the destruction of the property business 1318 01:03:34,559 --> 01:03:35,960 for them is not a safe investment. 1319 01:03:35,961 --> 01:03:37,319 What did Kathy say? 1320 01:03:37,320 --> 01:03:40,039 None. He still keeps asking if this is one of your strategies. 1321 01:03:40,040 --> 01:03:42,079 Okay, I want you to go in there 1322 01:03:42,080 --> 01:03:44,360 very calm, very friendly 1323 01:03:44,360 --> 01:03:46,600 tell the staff the risk of getting away. 1324 01:03:46,640 --> 01:03:48,360 And then meet me at Standard & Poor's. 1325 01:03:48,361 --> 01:03:49,960 We will talk to Georgia. 1326 01:03:49,960 --> 01:03:51,078 OK. Okay. 1327 01:03:51,079 --> 01:03:53,040 Tell the bastard Jared Vennett to come here. 1328 01:03:53,080 --> 01:03:54,880 I'll destroy his head. 1329 01:03:59,880 --> 01:04:01,520 Uh, ladies and gentlemen? 1330 01:04:01,520 --> 01:04:04,600 I talked to Mark Baum. He says get away. 1331 01:04:18,400 --> 01:04:20,720 My vision is bad. 1332 01:04:22,080 --> 01:04:24,680 My eye doctor is always busy. 1333 01:04:24,680 --> 01:04:26,560 Finally I serve all the promises they give me, 1334 01:04:26,561 --> 01:04:28,880 and all morning it gets very busy! 1335 01:04:30,080 --> 01:04:31,560 So... 1336 01:04:32,080 --> 01:04:33,959 OK, 1337 01:04:33,960 --> 01:04:36,999 FrontPoint Partners, 1338 01:04:37,000 --> 01:04:39,440 What can be helped by Standard & Poor's? 1339 01:04:39,440 --> 01:04:40,760 We don't understand why 1340 01:04:40,761 --> 01:04:43,519 rating agencies have not lowered the rating of subprime securities 1341 01:04:43,520 --> 01:04:46,639 since collateral for loans is clearly deteriorating. 1342 01:04:46,640 --> 01:04:49,160 Indeed, a rating violation makes people anxious, 1343 01:04:49,160 --> 01:04:51,000 but the subprima loan rating is still in our calculation. 1344 01:04:51,001 --> 01:04:52,960 - So... - That's what you think. 1345 01:04:54,120 --> 01:04:56,639 You are sure of mortgage collateral in this letter of defense is sturdy. 1346 01:04:56,640 --> 01:04:59,199 That's our opinion, yes. 1347 01:04:59,200 --> 01:05:01,160 1348 01:05:01,160 --> 01:05:03,318 Have you seen data on loan levels? 1349 01:05:03,319 --> 01:05:05,118 I mean, they give this loan 1350 01:05:05,119 --> 01:05:06,480 to anyone who wants it. 1351 01:05:06,481 --> 01:05:09,160 Excuse me, sir. What do you think we are doing here all day? 1352 01:05:09,160 --> 01:05:10,278 We are not sure. That's why we are here. 1353 01:05:10,279 --> 01:05:11,478 This is what we don't understand... 1354 01:05:11,479 --> 01:05:13,318 We check, check, check again. 1355 01:05:13,319 --> 01:05:14,718 If the mortgage securities are so stable... 1356 01:05:14,719 --> 01:05:16,478 Maybe you should check your friend. 1357 01:05:16,479 --> 01:05:18,560 Have you ever refused? Rating requests... 1358 01:05:18,600 --> 01:05:20,000 Ma'am, it's making it up. 1359 01:05:20,000 --> 01:05:21,198 We stand behind them. 1360 01:05:21,199 --> 01:05:22,880 Georgia, have you ever refused the rating request 1361 01:05:22,881 --> 01:05:26,240 one of the valuable letters above the AAA tranche? 1362 01:05:26,240 --> 01:05:27,918 Can we see the documents? 1363 01:05:27,919 --> 01:05:30,038 I have no right to provide that information 1364 01:05:30,039 --> 01:05:31,200 with you, whatever your position. 1365 01:05:31,201 --> 01:05:32,999 Just answer the question, Georgia. 1366 01:05:33,000 --> 01:05:35,080 Can you just mention it once 1367 01:05:35,080 --> 01:05:36,480 when you check the document 1368 01:05:36,481 --> 01:05:40,680 and don't give the AAA rating they want? 1369 01:05:42,920 --> 01:05:44,160 If we don't give the rating they requested, 1370 01:05:44,161 --> 01:05:46,999 they will move to Moody & apos; s. 1371 01:05:47,000 --> 01:05:51,000 If we don't cooperate, they will move to our rivals. 1372 01:05:51,000 --> 01:05:54,200 Not our fault. This is how the world system is run. 1373 01:05:58,520 --> 01:05:59,840 Damn. 1374 01:05:59,840 --> 01:06:01,040 Yes, now you understand. 1375 01:06:02,080 --> 01:06:04,239 Suppose I never said it. 1376 01:06:04,240 --> 01:06:06,679 They sell ratings for honorarium. 1377 01:06:06,680 --> 01:06:07,759 Store rating. 1378 01:06:07,760 --> 01:06:10,679 You can do it better. 1379 01:06:10,680 --> 01:06:12,640 Nobody says that. 1380 01:06:12,640 --> 01:06:14,880 And this is not my decision. I have a boss. 1381 01:06:14,920 --> 01:06:16,360 Are you kidding me? 1382 01:06:16,360 --> 01:06:17,760 No, I'm not "kidding". 1383 01:06:17,761 --> 01:06:20,120 What will your boss do during an IPO? 1384 01:06:20,160 --> 01:06:21,440 What point of view do you take? 1385 01:06:21,441 --> 01:06:25,080 So, now, anyone who has a boss is not considered responsible for illegal decisions. 1386 01:06:25,080 --> 01:06:26,560 How old are you, 4 years old? 1387 01:06:26,600 --> 01:06:28,200 No, I'm not 4 years old, Mr. Baum. No. 1388 01:06:28,200 --> 01:06:32,600 And I wonder what your motives are behind all this. 1389 01:06:32,640 --> 01:06:36,120 Will it be profitable for you 1390 01:06:36,120 --> 01:06:37,760 if the rating changes? Is that true? 1391 01:06:37,761 --> 01:06:40,720 How big is Swap Credit What jams do you have? Hmm? 1392 01:06:42,520 --> 01:06:45,080 That doesn't make me guilty. 1393 01:06:47,120 --> 01:06:49,119 No. 1394 01:06:49,120 --> 01:06:50,320 That makes you a hypocrite. 1395 01:06:50,320 --> 01:06:52,400 Sorry! 1396 01:07:33,040 --> 01:07:35,160 Violations of mortgages increase 1397 01:07:35,160 --> 01:07:36,358 and CDO are increasingly valuable. Can not be trusted. 1398 01:07:36,359 --> 01:07:38,438 Cannot be trusted. 1399 01:07:38,439 --> 01:07:39,638 We know. This is clearly the opposite. 1400 01:07:39,639 --> 01:07:40,800 1401 01:07:40,840 --> 01:07:42,438 I just called old friend in Bear. 1402 01:07:42,439 --> 01:07:44,240 He doesn't even know what the CDO is. 1403 01:07:44,241 --> 01:07:48,680 Yes, I only need to pay Bear & Deutsche for $ 70,000. 1404 01:07:48,680 --> 01:07:51,000 That's like 2 plus 2 equal to 1405 01:07:51,520 --> 01:07:52,719 fish. 1406 01:07:52,720 --> 01:07:55,519 It's cheating. We buy something that is rigged. 1407 01:07:55,520 --> 01:07:57,360 We can lose everything. 1408 01:07:57,360 --> 01:07:59,800 I have to go back to live with my mother. 1409 01:08:00,360 --> 01:08:01,840 It can't happen. 1410 01:08:01,840 --> 01:08:04,080 OK. I have an appointment with a doctor to check the large intestine. 1411 01:08:04,081 --> 01:08:05,799 Wait a minute. Wait, Ben. 1412 01:08:05,800 --> 01:08:07,239 Ben, listen. 1413 01:08:07,240 --> 01:08:09,719 Either the bank doesn't understand 1414 01:08:09,720 --> 01:08:12,079 and they don't know how to rate this CDO, 1415 01:08:12,080 --> 01:08:17,240 or they are indeed criminals who know CDO is worthless 1416 01:08:17,240 --> 01:08:18,880 but they hide it. 1417 01:08:21,160 --> 01:08:22,640 I think we have to buy more Swaps. 1418 01:08:23,200 --> 01:08:24,280 What? 1419 01:08:24,280 --> 01:08:26,400 Accept and pay, friend. We have made an agreement. 1420 01:08:26,401 --> 01:08:28,480 Not possible! No! 1421 01:08:28,520 --> 01:08:29,999 Are you kidding me? 1422 01:08:30,000 --> 01:08:32,439 Are you serious? Do you think this is a game? 1423 01:08:32,440 --> 01:08:33,840 No. No. No. 1424 01:08:33,840 --> 01:08:35,120 Yes. Yes. 1425 01:08:41,640 --> 01:08:43,440 No! No! 1426 01:08:43,440 --> 01:08:45,200 Seriously, appendicitis promises once a year. 1427 01:08:45,240 --> 01:08:46,600 Bastard! 1428 01:08:46,640 --> 01:08:48,680 Desperate your nickname butler boy, fucker! 1429 01:08:52,960 --> 01:08:54,880 - Have you finished? - I think it's already. 1430 01:08:54,881 --> 01:08:57,640 Gosh! My back muscles are attracted to screaming. 1431 01:08:58,520 --> 01:09:00,239 Ow! 1432 01:09:00,240 --> 01:09:03,919 The current mortgage credit is increasing. 1433 01:09:03,920 --> 01:09:07,960 But you give a higher price. 1434 01:09:07,960 --> 01:09:10,160 Please explain that. Because it doesn't make sense. 1435 01:09:10,161 --> 01:09:13,800 It's impossible for you to calculate this swap rashly. 1436 01:09:13,800 --> 01:09:15,720 What is the reason for us to support this transaction? 1437 01:09:18,240 --> 01:09:20,000 Didn't I say when we made an agreement 1438 01:09:20,001 --> 01:09:21,759 that rating agent, SEC 1439 01:09:21,760 --> 01:09:24,318 and big tub don't know anything? Did I never say that? 1440 01:09:24,319 --> 01:09:25,680 - Yes. - I told you & apos, right? 1441 01:09:25,681 --> 01:09:27,679 Yes, you said. 1442 01:09:27,680 --> 01:09:29,200 Shut up. 1443 01:09:29,200 --> 01:09:30,638 Now they're in trouble, 1444 01:09:30,639 --> 01:09:32,280 but they think the problem is is over, and you are surprised? 1445 01:09:32,281 --> 01:09:35,120 This is not ignorance. This is embezzlement. 1446 01:09:35,120 --> 01:09:36,920 Mention the difference between stupid and illegal, 1447 01:09:36,921 --> 01:09:39,000 my wife's brother can be arrested by the police. 1448 01:09:40,800 --> 01:09:42,440 That was funny. 1449 01:09:42,440 --> 01:09:45,678 I guess you just don't realize that this _ system really doesn't understand what's going on. 1450 01:09:45,679 --> 01:09:48,080 Yes, there are fluctuations that do not match predictions, 1451 01:09:48,081 --> 01:09:51,440 but trust me, everything fueled ignorance! 1452 01:09:52,640 --> 01:09:54,799 Look at yourself. 1453 01:09:54,800 --> 01:09:58,320 You call yourself you cynical people 1454 01:09:58,320 --> 01:10:00,800 but you still have trust in the system, right & apos; right? 1455 01:10:00,801 --> 01:10:02,159 I don't. 1456 01:10:02,160 --> 01:10:05,079 Except Vinnie. And who cares about that? 1457 01:10:05,080 --> 01:10:06,919 - Not allowed! - Listen... 1458 01:10:06,920 --> 01:10:10,200 Either we are right or we are really wrong. 1459 01:10:10,200 --> 01:10:12,158 And if we are wrong, then we have to find someone 1460 01:10:12,159 --> 01:10:13,880 that can help us get out of this transaction. 1461 01:10:13,881 --> 01:10:16,719 I'm not entirely sure we are right. 1462 01:10:16,720 --> 01:10:20,200 And if we are wrong, who will warn? 1463 01:10:20,200 --> 01:10:23,640 Who understands this problem? Does not make sense! 1464 01:10:26,080 --> 01:10:27,958 I think we should go to Vegas. 1465 01:10:27,959 --> 01:10:29,120 What's in Vegas? 1466 01:10:29,121 --> 01:10:30,240 Vegas? 1467 01:10:30,240 --> 01:10:32,080 What's in Las Vegas? 1468 01:10:33,200 --> 01:10:36,479 Next week there will be held American Securities Forum. 1469 01:10:36,480 --> 01:10:38,999 All securities sellers and CDO, subprima lenders 1470 01:10:39,000 --> 01:10:41,159 and swap traders will be there. 1471 01:10:41,160 --> 01:10:43,999 Tell you, bets you against Dumb Money. 1472 01:10:44,000 --> 01:10:46,920 This is the time you are looking for know how stupid the money is. 1473 01:10:46,920 --> 01:10:48,158 Gosh, I hate Vegas. 1474 01:10:48,159 --> 01:10:49,680 I hear that food in Vegas is delicious. 1475 01:10:49,681 --> 01:10:51,240 Now there is a Nobu Restaurant there. 1476 01:10:51,240 --> 01:10:52,800 Can you stop discussing such a thing? 1477 01:11:39,240 --> 01:11:40,359 Makes sense? 1478 01:11:40,360 --> 01:11:42,199 And if the securities are "rich"... 1479 01:11:42,200 --> 01:11:43,840 Either, contains assets? 1480 01:11:43,840 --> 01:11:45,358 "Rich" only means being overrated. 1481 01:11:45,359 --> 01:11:47,440 I can't sleep on a plane, so I do my homework. 1482 01:11:47,441 --> 01:11:49,920 Okay, focus. What is our purpose? 1483 01:11:49,920 --> 01:11:52,320 To find out if this is profitable 1484 01:11:52,360 --> 01:11:54,200 or does everyone know something we don't know 1485 01:11:54,201 --> 01:11:56,159 then we will get a big problem. 1486 01:11:56,160 --> 01:11:59,040 Right. Remember that when you meet Bear people. 1487 01:11:59,040 --> 01:12:00,880 I have arranged your appointments to meet directly. 1488 01:12:00,881 --> 01:12:02,479 - Amazing. - Where? 1489 01:12:02,480 --> 01:12:06,679 Damn. Five years ago, Security was only a meeting of losers. 1490 01:12:06,680 --> 01:12:08,880 100, maybe 200 people come. 1491 01:12:08,880 --> 01:12:11,158 $ 500 billion later, you get something like this. 1492 01:12:11,159 --> 01:12:12,840 There are so many greedy-looking people? 1493 01:12:12,880 --> 01:12:16,400 Like pinata which contains white people who are poor at playing golf. 1494 01:12:16,400 --> 01:12:17,998 I mean who are these clowns? 1495 01:12:17,999 --> 01:12:19,520 Oh come on. I think it's fun. 1496 01:12:19,521 --> 01:12:23,000 Actually. Vennett says these people we are betting on. 1497 01:12:23,000 --> 01:12:24,958 - Yes, here it is. This is it. - Here it is. 1498 01:12:24,959 --> 01:12:26,720 Chris, left. Chris, standing on the left. 1499 01:12:27,160 --> 01:12:28,358 Ladies and gentlemen. 1500 01:12:28,359 --> 01:12:30,240 When we have the opportunity meet directly 1501 01:12:30,241 --> 01:12:32,039 with these people? 1502 01:12:32,040 --> 01:12:33,600 Chris, give him a card. 1503 01:12:33,600 --> 01:12:34,878 What do you have to give? 1504 01:12:34,879 --> 01:12:36,398 - You just gave it up? - Thank you. 1505 01:12:36,399 --> 01:12:38,758 First, what is your trip? How are you? Is it smooth? 1506 01:12:38,759 --> 01:12:40,038 - Current. - Okay. 1507 01:12:40,039 --> 01:12:41,838 I'm 6 hours faster. I've been sporting, 1508 01:12:41,839 --> 01:12:43,238 Eat 2 boiled eggs 1509 01:12:43,239 --> 01:12:45,000 and play blackjack with Harry Dean Stanton. 1510 01:12:45,001 --> 01:12:46,880 Thank you for the daily report. 1511 01:12:46,880 --> 01:12:48,598 Meet directly. I want to meet directly. 1512 01:12:48,599 --> 01:12:50,160 Keep in mind. We are here to collect information. 1513 01:12:50,161 --> 01:12:51,679 We collect information, okay? 1514 01:12:51,680 --> 01:12:54,118 We don't advertise our short positions. Understand? 1515 01:12:54,119 --> 01:12:55,840 We don't want to scare others. Can you do that? 1516 01:12:55,841 --> 01:12:57,480 I know your mouth can't be regulated. 1517 01:12:57,480 --> 01:12:59,360 Can you just keep it for a few days? 1518 01:12:59,361 --> 01:13:00,520 OK. Okay. 1519 01:13:00,520 --> 01:13:02,440 Yes, don't worry. We will play pretty. 1520 01:13:02,441 --> 01:13:03,839 Ladies and gentlemen. 1521 01:13:03,840 --> 01:13:06,159 Business is currently good. 1522 01:13:06,160 --> 01:13:07,599 Big profits 1523 01:13:07,600 --> 01:13:10,640 and mortgages still continue is solidly a foundation 1524 01:13:10,640 --> 01:13:13,240 where our economy is built on it. 1525 01:13:17,640 --> 01:13:19,280 And, right, we experience a slight loss 1526 01:13:19,281 --> 01:13:22,679 last year in the area of loans suprima, but the loss is 1527 01:13:22,680 --> 01:13:25,479 will be held at 5%. 1528 01:13:25,480 --> 01:13:27,720 In the field of residential property... 1529 01:13:27,720 --> 01:13:28,958 Mark, this is not a question and answer session. 1530 01:13:28,959 --> 01:13:30,720 Launch us against variable interest rate packages 1531 01:13:30,721 --> 01:13:32,480 invaded by consumers! 1532 01:13:32,480 --> 01:13:34,560 Sorry, I have a question. 1533 01:13:36,320 --> 01:13:37,480 Uh... 1534 01:13:37,480 --> 01:13:39,680 Sir, my question and answer session after I finished my statement. 1535 01:13:39,681 --> 01:13:42,199 But you seem to be very worried? Is there anything I can help? 1536 01:13:42,200 --> 01:13:44,199 - Thank you. How are you? - Okay, thank you. 1537 01:13:44,200 --> 01:13:47,399 Do you think there is a possibility 1538 01:13:47,400 --> 01:13:52,239 that the loan loss suprima will stop at 5%? 1539 01:13:52,240 --> 01:13:53,439 Thank you. 1540 01:13:53,440 --> 01:13:58,679 I say it's very likely. 1541 01:13:58,680 --> 01:14:01,320 So back to the housing sector. 1542 01:14:01,320 --> 01:14:03,520 When we launch the tribal package the new variable interest... 1543 01:14:03,521 --> 01:14:06,040 - Excuse me. - Um... 1544 01:14:07,560 --> 01:14:08,680 Yes, sir. 1545 01:14:08,680 --> 01:14:12,160 Zero! Zero! 1546 01:14:12,200 --> 01:14:15,039 Chances are 0% 1547 01:14:15,040 --> 01:14:18,919 subprima loan losses will stop at 5%. 1548 01:14:18,920 --> 01:14:20,079 Zero. 1549 01:14:20,080 --> 01:14:21,680 Excuse me. 1550 01:14:21,680 --> 01:14:22,840 I have to lift this. 1551 01:14:22,841 --> 01:14:24,880 Surely he is from Bank America. 1552 01:14:26,480 --> 01:14:27,918 Our loan area suprima has no problem. 1553 01:14:27,919 --> 01:14:29,278 No, I'm not being doing anything right now. 1554 01:14:29,279 --> 01:14:30,878 As I said, our housing area... 1555 01:14:30,879 --> 01:14:32,160 What about children? 1556 01:14:32,161 --> 01:14:34,640 Consumers welcome our package... 1557 01:14:34,640 --> 01:14:36,358 Mark Baum really did this. 1558 01:14:36,359 --> 01:14:37,720 When we were in Vegas, he did that. 1559 01:14:37,721 --> 01:14:40,320 He said that, he picked up the telephone. 1560 01:14:40,360 --> 01:14:42,400 Now do you understand what I'm facing? 1561 01:14:55,720 --> 01:14:57,960 Yes, Beretta... Meh. 1562 01:14:57,960 --> 01:15:00,240 But this Uzi weapon is amazing! 1563 01:15:00,280 --> 01:15:02,919 What I need is a machine CDO is running for another 2 years. 1564 01:15:02,920 --> 01:15:06,279 So I can be rich and can buy a house in Aspen. 1565 01:15:06,280 --> 01:15:09,520 But are you not worried about the conditions 1566 01:15:09,520 --> 01:15:11,198 of collateral securities that exist? 1567 01:15:11,199 --> 01:15:13,080 Relatively easy to see the violation 1568 01:15:13,081 --> 01:15:16,039 and currently the benchmark interest rate continues to rise. 1569 01:15:16,040 --> 01:15:18,599 Please stop talking about bad things like that, friend. 1570 01:15:18,600 --> 01:15:21,199 We don't want to meet you to talk about your friends' work. 1571 01:15:21,200 --> 01:15:22,799 So what for? 1572 01:15:22,800 --> 01:15:26,039 So that you pay the ammunition fee. 1573 01:15:26,040 --> 01:15:29,279 I will shoot terrorists. Pay attention! 1574 01:15:29,280 --> 01:15:30,639 They are idiots. 1575 01:15:30,640 --> 01:15:32,600 - Stupid. - Whoo! 1576 01:15:32,600 --> 01:15:33,680 They are stupid. 1577 01:15:34,800 --> 01:15:36,080 Damn, huh! Boom! 1578 01:15:36,081 --> 01:15:37,480 Yeah! 1579 01:15:37,480 --> 01:15:39,800 We have to buy all swaps that we can get. 1580 01:15:39,801 --> 01:15:42,159 Wait, okay? Wait a minute. 1581 01:15:42,160 --> 01:15:44,559 My older sister's boyfriend works at the SEC. 1582 01:15:44,560 --> 01:15:46,520 He said he was here too, okay? 1583 01:15:46,520 --> 01:15:48,758 So, if something is missed maybe he can tell us. 1584 01:15:48,759 --> 01:15:50,438 Maybe you can give a little information. 1585 01:15:50,439 --> 01:15:52,320 Meanwhile, go to the main floor 1586 01:15:52,321 --> 01:15:54,479 and ask the swap price. 1587 01:15:54,480 --> 01:15:55,999 Actually, we are 1588 01:15:56,000 --> 01:15:58,559 want to invest in letters valuable property, and... 1589 01:15:58,560 --> 01:16:01,320 I wonder if there are SEC concerns about that. 1590 01:16:01,320 --> 01:16:04,120 I know you are not allowed to tell in detail, only in general. 1591 01:16:04,121 --> 01:16:06,440 Oh, we don't check mortgage securities. 1592 01:16:06,440 --> 01:16:09,760 In fact, since our allocation of funds was deducted, we did not do a lot of checks. 1593 01:16:11,840 --> 01:16:13,360 Then what are you here for? I thought... 1594 01:16:13,361 --> 01:16:14,880 I'm not representing the SEC. 1595 01:16:14,880 --> 01:16:16,520 I come here for personal gain. 1596 01:16:17,480 --> 01:16:20,759 I enter a proposal to several large banks. 1597 01:16:20,760 --> 01:16:22,440 By the way, how's your brother? 1598 01:16:22,440 --> 01:16:24,400 How can you send an application to a large bank? 1599 01:16:24,401 --> 01:16:25,920 I mean, you should, 1600 01:16:25,920 --> 01:16:27,320 determine rules for banks. 1601 01:16:27,321 --> 01:16:28,879 Mature, Jamie. 1602 01:16:28,880 --> 01:16:32,679 Surely there are rules that prohibit someone working in a financial institution 1603 01:16:32,680 --> 01:16:34,359 after previously working 1604 01:16:34,360 --> 01:16:35,960 to the financial regulator, right? 1605 01:16:35,960 --> 01:16:38,080 No. No. 1606 01:16:39,120 --> 01:16:42,519 Hey! Dougie! 1607 01:16:42,520 --> 01:16:45,560 Hey! Come here What are you doing at Caesars? 1608 01:16:45,560 --> 01:16:47,080 He works at Goldman. 1609 01:16:47,720 --> 01:16:48,920 See you later. 1610 01:16:48,920 --> 01:16:53,920 We can offer swaps for BBB ratings at 500 basis points. Maybe. 1611 01:16:53,960 --> 01:16:57,799 You give a swap price like the securities will collapse 1612 01:16:57,800 --> 01:17:00,759 even though the value is rising? Serious? 1613 01:17:00,760 --> 01:17:02,160 Talk time. 1614 01:17:02,160 --> 01:17:03,200 What happened? 1615 01:18:01,800 --> 01:18:05,679 Lewis, can you come early tomorrow? 1616 01:18:05,680 --> 01:18:08,039 I want to re-structure the position 1617 01:18:08,040 --> 01:18:09,600 AIG, Countrywide and Freddie 1618 01:18:09,600 --> 01:18:12,240 so we can pay premiums... 1619 01:18:13,360 --> 01:18:16,720 of Swap we have. 1620 01:18:16,720 --> 01:18:18,240 No problem, Dr. Burry. 1621 01:18:20,280 --> 01:18:21,440 - Dr. Burry? - Hmm? 1622 01:18:25,040 --> 01:18:26,160 If investors withdraw their funds, 1623 01:18:26,161 --> 01:18:29,040 What will happen here? Is our history finished? 1624 01:18:29,040 --> 01:18:30,920 To be honest, I don't know. 1625 01:18:38,600 --> 01:18:40,880 The value of securities does not go down. 1626 01:18:42,120 --> 01:18:45,200 Not moving. Possible 1627 01:18:45,200 --> 01:18:49,800 we are on a system that is really rigged. 1628 01:18:51,240 --> 01:18:53,880 Or... you're wrong. 1629 01:18:58,640 --> 01:19:00,480 Of course. 1630 01:19:00,520 --> 01:19:04,520 Maybe I'm wrong. It's just that I don't know. 1631 01:19:09,200 --> 01:19:13,760 I guess when someone is wrong, they never... 1632 01:19:13,760 --> 01:19:16,000 They never know why. 1633 01:19:20,280 --> 01:19:21,440 See you in the morning. 1634 01:19:21,441 --> 01:19:22,480 Yes. 1635 01:19:24,280 --> 01:19:26,879 Even Bear raises the price. 1636 01:19:26,880 --> 01:19:29,480 And they continue to call us Brownhole. 1637 01:19:29,480 --> 01:19:31,158 You don't have money or reputation, that's all. 1638 01:19:31,159 --> 01:19:32,638 Don't think too much about it. 1639 01:19:32,639 --> 01:19:34,200 I don't think I want to go into this night's striptease. 1640 01:19:34,201 --> 01:19:37,760 I will only drink ginger and watch a pay-per-view program. 1641 01:19:37,760 --> 01:19:40,160 I will give you tickets for all of us tomorrow morning. 1642 01:19:41,560 --> 01:19:44,280 Agreement. We need an agreement & right? Deal. 1643 01:19:44,280 --> 01:19:46,160 We need an agreement that is affordable for us. 1644 01:19:46,200 --> 01:19:48,560 An agreement that they will not reject. 1645 01:19:48,600 --> 01:19:51,920 So... what can we do? We can... 1646 01:19:53,200 --> 01:19:56,200 Tranche AA. What if we bet on tranche AA? 1647 01:19:56,200 --> 01:19:58,240 Who doesn't want to take bets like that? 1648 01:19:58,241 --> 01:20:01,240 We know the rating is 95% AAA, 1649 01:20:01,280 --> 01:20:03,319 but the reality may be around 25%. 1650 01:20:03,320 --> 01:20:05,839 Some of them are 0%! 1651 01:20:05,840 --> 01:20:08,560 We also know if the base point tranche will fall above 8%, 1652 01:20:08,560 --> 01:20:09,798 tranches on it will also be affected. 1653 01:20:09,799 --> 01:20:11,280 Everything will be zero. 1654 01:20:11,281 --> 01:20:14,680 I'm sure the AA level now is actually like level B. 1655 01:20:14,680 --> 01:20:17,760 I rarely say it, but I think Charlie is right. 1656 01:20:18,120 --> 01:20:19,760 Look, Ben. 1657 01:20:21,440 --> 01:20:22,840 Returns 1658 01:20:23,360 --> 01:20:24,840 200 versus 1. 1659 01:20:24,840 --> 01:20:27,000 But they only decide based on rating. 1660 01:20:27,040 --> 01:20:30,440 So they give penny rates for every dollar if betting for AA. 1661 01:20:32,040 --> 01:20:34,959 When I start thinking you guys are stupid... 1662 01:20:34,960 --> 01:20:37,519 There are no people on the planet who bet on AA. 1663 01:20:37,520 --> 01:20:40,520 Banks will think we're being drunk or stricken. 1664 01:20:40,520 --> 01:20:42,880 They will take whatever we offer. 1665 01:20:45,480 --> 01:20:46,800 Brilliant. 1666 01:20:48,600 --> 01:20:50,760 This is what we do and not other people realize. 1667 01:20:50,761 --> 01:20:53,760 Even Baum or Burry don't think makes short positions for AA. 1668 01:20:53,760 --> 01:20:55,200 But that's what we did. 1669 01:20:55,201 --> 01:20:57,079 Little Brownhole Capital. 1670 01:20:57,080 --> 01:21:02,080 We want to take a position short against the tranche AA CDO. 1671 01:21:02,080 --> 01:21:03,998 Come on guys, what are you pointing at? 1672 01:21:03,999 --> 01:21:06,400 Oh, nothing. We are new to this business. We are just excited. 1673 01:21:06,401 --> 01:21:10,560 We want to buy a swap for tranche AA for $ 15 million. 1674 01:21:10,560 --> 01:21:11,720 I don't understand. 1675 01:21:11,721 --> 01:21:14,360 You can buy tranche AA as many as you want. 1676 01:21:16,560 --> 01:21:18,759 $ 40 million for short AA positions. 1677 01:21:18,760 --> 01:21:21,280 Brother, I will sell for whatever you want. 1678 01:21:21,280 --> 01:21:23,520 You understand it well, Bob. Do you want a deal? 1679 01:21:25,680 --> 01:21:27,680 No problem. No problem with me. 1680 01:21:29,880 --> 01:21:31,080 With pleasure. 1681 01:21:35,920 --> 01:21:37,800 Oh! 1682 01:21:39,320 --> 01:21:41,240 Don't do that. Stop. Stop. 1683 01:21:41,920 --> 01:21:43,120 - Stop it. - Charlie. 1684 01:21:43,880 --> 01:21:45,280 Stop it! Stop it. 1685 01:21:47,720 --> 01:21:48,840 What? 1686 01:21:50,240 --> 01:21:52,038 Do you know what's new just do you? 1687 01:21:52,039 --> 01:21:53,758 Come on. We just did a gold deal! 1688 01:21:53,759 --> 01:21:55,038 We must celebrate. 1689 01:21:55,039 --> 01:21:57,040 You just bet against the American economy. 1690 01:21:57,041 --> 01:21:58,599 That's right! 1691 01:21:58,600 --> 01:22:00,639 - Yeah! - Which means... 1692 01:22:00,640 --> 01:22:04,400 Which means if we are right... 1693 01:22:04,400 --> 01:22:07,800 If we are right, the people also lose their homes. Work. 1694 01:22:07,840 --> 01:22:11,120 People lose retirement savings. People don't get pensions. 1695 01:22:11,120 --> 01:22:12,398 Do you know what I hate about banking? 1696 01:22:12,399 --> 01:22:14,038 Banking reduces population. These are the numbers. 1697 01:22:14,039 --> 01:22:16,920 Every 1% increase in unemployment, 40,000 people die. Do you know that? 1698 01:22:16,921 --> 01:22:18,520 - No. - You know that? 1699 01:22:18,520 --> 01:22:20,120 No, I don't know. 1700 01:22:21,560 --> 01:22:23,240 We are just too happy. 1701 01:22:25,640 --> 01:22:28,320 Don't dance. 1702 01:22:28,320 --> 01:22:30,160 - Good. - Where are you going? 1703 01:22:34,520 --> 01:22:36,680 Whoa, I'm very scared. 1704 01:22:38,240 --> 01:22:40,238 First of all, a good show today. 1705 01:22:40,239 --> 01:22:41,798 - You're amazing. - Thank you. 1706 01:22:41,799 --> 01:22:43,480 Your big mouth is really a relief. 1707 01:22:43,481 --> 01:22:45,320 I appreciate that. 1708 01:22:45,320 --> 01:22:47,160 You worry about yourself and your swap is mocked? 1709 01:22:47,161 --> 01:22:48,839 This is an opportunity for you 1710 01:22:48,840 --> 01:22:50,399 meet your opponent's bet. 1711 01:22:50,400 --> 01:22:52,280 Try to listen. 1712 01:22:52,280 --> 01:22:53,760 Okay, alright. Who is this person? 1713 01:22:53,761 --> 01:22:55,600 Brashy bastard. 1714 01:22:55,600 --> 01:22:56,800 I'm a CDO manager. 1715 01:22:56,801 --> 01:22:57,919 "CDO Manager"? 1716 01:22:57,920 --> 01:22:59,920 Yes, at the Harding Advisors firm. 1717 01:22:59,920 --> 01:23:03,040 I don't know anyone needs to be managed in the CDO. 1718 01:23:04,000 --> 01:23:05,760 Oh 1719 01:23:05,760 --> 01:23:08,360 We choose securities that are into the CDO portfolio 1720 01:23:08,400 --> 01:23:09,838 and oversee the asset. 1721 01:23:09,839 --> 01:23:11,760 I do more for the CDO Merrill Lynch. 1722 01:23:11,761 --> 01:23:14,799 What do you represent the investors or Merrill Lynch? 1723 01:23:14,800 --> 01:23:15,880 Investor. 1724 01:23:15,880 --> 01:23:17,040 You did it. 1725 01:23:17,041 --> 01:23:18,560 - Yes. - But... 1726 01:23:18,560 --> 01:23:20,520 Merrill Lynch does not provide customers 1727 01:23:20,521 --> 01:23:25,199 unless you enter a valuable letter from Merrill Lynch into the CDO. 1728 01:23:25,200 --> 01:23:28,519 A good question. We call it that Merrill and I have, um... 1729 01:23:28,520 --> 01:23:30,759 Our relationship is quite good. 1730 01:23:30,760 --> 01:23:33,039 Your relationship with Merrill Lynch is good enough. 1731 01:23:33,040 --> 01:23:34,799 We have worked together for a long time. 1732 01:23:34,800 --> 01:23:37,360 And the CDO you made 1733 01:23:37,360 --> 01:23:41,360 consists of quality high and highest value. 1734 01:23:41,400 --> 01:23:43,400 - Of course. Yes. - Of course. 1735 01:23:43,400 --> 01:23:46,920 Do you consider a little the benchmark interest rate continues to rise? 1736 01:23:48,880 --> 01:23:52,080 I assume there are no risks in this product, Mark. 1737 01:23:54,720 --> 01:23:55,880 OK. 1738 01:23:57,480 --> 01:24:01,240 Let me be clear. The bank contacted you. 1739 01:24:01,240 --> 01:24:02,878 They give you the valuable letter they want to sell. 1740 01:24:02,879 --> 01:24:04,280 They give you clients, 1741 01:24:04,281 --> 01:24:06,720 they give you money to run your business. 1742 01:24:06,760 --> 01:24:08,560 Give you a big honor for that. 1743 01:24:08,560 --> 01:24:10,800 But you represent investors? 1744 01:24:12,080 --> 01:24:13,240 Right like that? 1745 01:24:13,241 --> 01:24:14,360 Yes. 1746 01:24:14,400 --> 01:24:15,918 But we are not in the same building _ as Merrill Lynch. 1747 01:24:15,919 --> 01:24:17,600 - Okay. Where is your office? - We are in New Jersey. 1748 01:24:17,601 --> 01:24:19,760 Your distance is 20 minutes. 1749 01:24:19,760 --> 01:24:21,680 Five minutes if using a helicopter. 1750 01:24:23,560 --> 01:24:24,840 Funny isn't it? 1751 01:24:24,840 --> 01:24:26,080 Fun. 1752 01:24:29,200 --> 01:24:30,599 Oh my goodness. 1753 01:24:30,600 --> 01:24:32,880 Your boss will explode. 1754 01:24:32,880 --> 01:24:34,600 No, he was too curious to not explode. 1755 01:24:34,601 --> 01:24:36,159 Wait. Say again. 1756 01:24:36,160 --> 01:24:38,359 CDO "A" has a CDO "B" section. 1757 01:24:38,360 --> 01:24:40,360 And CDO "B" has a CDO "A" section. 1758 01:24:40,360 --> 01:24:42,718 But then they are included in CDO "C". 1759 01:24:42,719 --> 01:24:44,560 Yes, it's called CDO squared. 1760 01:24:44,561 --> 01:24:46,600 A CDO from CDO. 1761 01:24:47,040 --> 01:24:48,200 OK? 1762 01:24:48,200 --> 01:24:50,240 And then there are CDOs that are made from different sides of your Swap bets. 1763 01:24:50,241 --> 01:24:52,039 We call it synthetic CDO. 1764 01:24:52,040 --> 01:24:54,439 What do you say? Synthetic CDO. 1765 01:24:54,440 --> 01:24:56,719 That's crazy stuff. 1766 01:24:56,720 --> 01:24:58,559 1767 01:24:58,560 --> 01:25:01,640 No. This is amazing. 1768 01:25:01,640 --> 01:25:05,120 The face boils. He looks like a bad person on Dune. 1769 01:25:09,240 --> 01:25:11,639 Okay, let's just call it 1770 01:25:11,640 --> 01:25:15,319 You have a pool of $ 50 million containing subprime loans. 1771 01:25:15,320 --> 01:25:17,959 How much money is bet against, 1772 01:25:17,960 --> 01:25:20,879 synthetic CDO and swap 1773 01:25:20,880 --> 01:25:22,560 at this time, tonight? 1774 01:25:22,560 --> 01:25:25,160 $ 50 million... Hmm... 1775 01:25:26,160 --> 01:25:27,200 One billion dollars. 1776 01:25:27,240 --> 01:25:29,320 What? 1777 01:25:29,320 --> 01:25:31,318 If the mortgage securities found Michael Burry 1778 01:25:31,319 --> 01:25:32,640 as a comparison... 1779 01:25:34,080 --> 01:25:36,600 How big is the market for insurance mortgage securities 1780 01:25:36,600 --> 01:25:38,040 compared to real mortgages? 1781 01:25:39,240 --> 01:25:40,518 About 20 times. 1782 01:25:40,519 --> 01:25:42,720 If the mortgage securities are in comparison 1783 01:25:42,721 --> 01:25:45,519 and CDO are the fuel, 1784 01:25:45,520 --> 01:25:47,640 then synthetic CDO like atomic bomb 1785 01:25:47,640 --> 01:25:49,438 with the fingers of the President who is drunk 1786 01:25:49,439 --> 01:25:50,680 ready to press it. 1787 01:25:50,681 --> 01:25:52,999 At that moment 1788 01:25:53,000 --> 01:25:56,280 with a stupid look, Mark Baum realized 1789 01:25:56,280 --> 01:25:58,680 the entire world economy might collapse. 1790 01:26:02,320 --> 01:26:04,320 And I know what you think. 1791 01:26:04,320 --> 01:26:06,760 "What is synthetic CDO?" 1792 01:26:09,040 --> 01:26:12,759 This is Dr. Richard Thaler, The father of the behavioral economy 1793 01:26:12,760 --> 01:26:15,719 and Selena Gomez who will explain. 1794 01:26:15,720 --> 01:26:18,960 OK. So this is how synthetic CDO works. 1795 01:26:18,960 --> 01:26:21,920 Just say I bet $ 10 million for a blackjack position. 1796 01:26:21,960 --> 01:26:24,800 $ 10 million because this position symbolizes 1797 01:26:24,800 --> 01:26:27,040 a mortgage securities. 1798 01:26:30,000 --> 01:26:33,560 Okay, Selena's position here is pretty good, showing 18. 1799 01:26:33,560 --> 01:26:34,640 Bandar shows seven. 1800 01:26:34,641 --> 01:26:36,800 A very good position for Selena. 1801 01:26:36,800 --> 01:26:38,240 Good opportunity. The fact is, the chance to win 1802 01:26:38,241 --> 01:26:40,719 in this position is 87%. 1803 01:26:40,720 --> 01:26:44,199 So, my chance is good. I'm in a series of victories. 1804 01:26:44,200 --> 01:26:46,920 All of these people joined in the action. 1805 01:26:46,920 --> 01:26:48,400 How could I lose, right? 1806 01:26:48,401 --> 01:26:49,999 This is a classic mistake. 1807 01:26:50,000 --> 01:26:53,039 In this basketball is called Hot Hand Fallacy. 1808 01:26:53,040 --> 01:26:55,680 A player does a number of shots in one turn. 1809 01:26:55,680 --> 01:26:58,038 People believe furthermore they will succeed. 1810 01:26:58,039 --> 01:27:00,080 People think whatever is happening now 1811 01:27:00,081 --> 01:27:02,919 will continue to happen in the future. 1812 01:27:02,920 --> 01:27:06,360 During a property explosion, the market continues to rise and rise and people think will never go down. 1813 01:27:06,360 --> 01:27:08,080 So people who watch and think I won't lose 1814 01:27:08,081 --> 01:27:10,719 will make side bets. 1815 01:27:10,720 --> 01:27:12,239 Now, this is the first synthetic CDO. 1816 01:27:12,240 --> 01:27:14,600 I like Selena Gomez. 1817 01:27:14,600 --> 01:27:16,240 I bet $ 50 million he will win. 1818 01:27:16,280 --> 01:27:17,878 And I'll give 3 to 1 a chance for you. 1819 01:27:17,879 --> 01:27:20,040 1820 01:27:20,041 --> 01:27:23,919 Opportunity 3 to 1? Okay, I'll take the bet. 1821 01:27:23,920 --> 01:27:27,360 Now, someone else wants to bet too 1822 01:27:27,360 --> 01:27:28,638 from the first synthetic betting result. 1823 01:27:28,639 --> 01:27:29,880 I bet he will win $ 50 million. 1824 01:27:29,881 --> 01:27:32,919 That will be the second synthetic CDO. 1825 01:27:32,920 --> 01:27:36,239 Hey, I bet $ 200 million, women with glasses 1826 01:27:36,240 --> 01:27:37,919 who will win the bet. 1827 01:27:37,920 --> 01:27:41,160 He might win. So I want a large return. 1828 01:27:41,160 --> 01:27:42,400 How about 20 to 1? 1829 01:27:42,401 --> 01:27:43,919 Agree. 1830 01:27:43,920 --> 01:27:48,239 And this will continue to occur with the increasing number of synthetic CDOs. 1831 01:27:48,240 --> 01:27:52,440 And we can change the investment which was originally $ 10 million to be billions of dollars. 1832 01:27:52,440 --> 01:27:54,320 Are you okay? 1833 01:27:55,280 --> 01:27:56,600 No. 1834 01:27:58,000 --> 01:27:59,000 I actually feel nauseous. 1835 01:28:00,400 --> 01:28:02,240 So I'll leave. 1836 01:28:07,440 --> 01:28:09,360 Do you think I'm like parasites & apos, right, Mr. Baum? 1837 01:28:10,960 --> 01:28:13,920 1838 01:28:13,920 --> 01:28:17,840 However, it seems, the people highly respect me. 1839 01:28:18,840 --> 01:28:20,640 Let's do this. 1840 01:28:22,680 --> 01:28:26,240 I'll tell you how much I have. 1841 01:28:26,240 --> 01:28:27,720 You also tell me how much you are. 1842 01:28:28,920 --> 01:28:34,000 Gosh, you really are a fucking ***. 1843 01:28:39,760 --> 01:28:41,720 Take a short position for all the things that have been touched by that person. 1844 01:28:41,721 --> 01:28:43,880 I want half a billion additional swaps. 1845 01:28:43,880 --> 01:28:46,200 Are you sure of that? The collateral can make you bankrupt. 1846 01:28:46,201 --> 01:28:47,240 Yes. Yes. 1847 01:28:47,240 --> 01:28:48,320 Where do you want to go? 1848 01:28:48,321 --> 01:28:51,440 I want to find moral liberation 1849 01:28:51,440 --> 01:28:53,240 on the roullete table. 1850 01:29:57,440 --> 01:29:58,840 Hey, hey, hey! 1851 01:30:02,880 --> 01:30:04,360 This is worse than I thought. 1852 01:30:06,480 --> 01:30:08,800 I think the economy will collapse. 1853 01:30:08,800 --> 01:30:10,040 But first you said 1854 01:30:10,041 --> 01:30:13,560 the system has been damaged since Mark was first. So... 1855 01:30:13,560 --> 01:30:15,480 Why are you surprised? 1856 01:30:17,960 --> 01:30:21,519 This is more complicated than anything I ever imagined. 1857 01:30:21,520 --> 01:30:23,800 You who want to be honest. 1858 01:30:23,800 --> 01:30:25,480 I'm a banker. I'm one of the parts. 1859 01:30:25,481 --> 01:30:27,879 Always like that, Mark. You are not affected. 1860 01:30:27,880 --> 01:30:31,920 That changes me. Turn me into someone 1861 01:30:31,920 --> 01:30:33,838 who is unable to reach people... 1862 01:30:33,839 --> 01:30:36,320 He is in pain. My brother is really in pain. 1863 01:30:36,321 --> 01:30:38,680 There is no perfect way to help. 1864 01:30:41,720 --> 01:30:44,280 Sad. Scary. 1865 01:30:44,280 --> 01:30:47,520 So stop trying to improve the world. 1866 01:30:47,560 --> 01:30:48,680 He tells me... 1867 01:30:48,681 --> 01:30:50,120 You're not a saint. 1868 01:30:50,120 --> 01:30:52,080 Saints don't live on Park Avenue. 1869 01:30:52,081 --> 01:30:53,759 Who has bad thoughts. 1870 01:30:53,760 --> 01:30:56,920 Feel something like us. 1871 01:30:56,920 --> 01:31:01,400 My first response is offering him some money. 1872 01:31:01,440 --> 01:31:04,320 I offer him money! 1873 01:31:09,600 --> 01:31:12,200 His face was so hit. 1874 01:31:31,280 --> 01:31:32,600 That's right. 1875 01:32:39,320 --> 01:32:40,719 Michael? 1876 01:32:40,720 --> 01:32:42,160 - Michael? - Yes. Yes. 1877 01:32:42,160 --> 01:32:43,240 Is everything okay? 1878 01:32:43,241 --> 01:32:44,319 Yes dear. 1879 01:32:44,320 --> 01:32:45,400 Are you sure? 1880 01:32:45,400 --> 01:32:46,440 Yes dear. 1881 01:32:48,240 --> 01:32:49,520 I'm fine. 1882 01:32:58,520 --> 01:33:00,240 For all investors. 1883 01:33:00,240 --> 01:33:02,320 As you know, 1884 01:33:02,360 --> 01:33:06,360 our agreement allows me to take an unusual benchmark 1885 01:33:06,400 --> 01:33:09,360 when the market does not function properly. 1886 01:33:09,400 --> 01:33:13,080 I currently have reason to believe that mortgage market securities has been cheated. 1887 01:33:13,760 --> 01:33:15,520 So that with the aim of protecting the investors from this rigged market, 1888 01:33:17,680 --> 01:33:22,519 I decided to limit the withdrawal of investor funds until further notice. 1889 01:33:22,520 --> 01:33:25,839 With respect, Dr. Michael J. Burry. 1890 01:33:25,840 --> 01:33:27,880 I will demand. 1891 01:33:27,880 --> 01:33:31,520 Everyone, deep down, is waiting for the end of the world. Haruki Murakami (Novel 1Q84) 1892 01:34:02,612 --> 01:34:05,120 I never thought of my life 1893 01:34:29,664 --> 01:34:36,912 can change so far since I moved to L.A. 1894 01:34:39,080 --> 01:34:40,720 1895 01:34:40,721 --> 01:34:43,360 1896 01:34:43,360 --> 01:34:45,800 It's not like, it's easy to, don't meet you. 1897 01:34:45,801 --> 01:34:49,120 He dismisses rumors that he is using drugs to increase stamina. 1898 01:34:49,120 --> 01:34:50,598 The notes are not manipulated. 1899 01:34:50,599 --> 01:34:51,838 Oh, God, friend. 1900 01:34:51,839 --> 01:34:53,640 Can you stop changing TV channels? 1901 01:34:53,641 --> 01:34:55,359 - You drive me crazy. - OK. 1902 01:34:55,360 --> 01:34:58,240 - Okay. - Move to the business channel only. 1903 01:34:58,240 --> 01:34:59,520 And S & P gets 3 points. 1904 01:34:59,521 --> 01:35:00,600 Gosh! 1905 01:35:00,600 --> 01:35:02,480 Today's mortgage crisis continues. 1906 01:35:02,481 --> 01:35:05,279 Subprima lenders New Century Financial, 1907 01:35:05,280 --> 01:35:08,000 was once the top in this industry, currently, submitted to bankruptcy. 1908 01:35:08,000 --> 01:35:10,500 - Company immediately... - Whoa, whoa, whoa. 1909 01:35:10,520 --> 01:35:11,760 My voice is back again... 1910 01:35:11,761 --> 01:35:14,120 Firing 3,200 workers. 1911 01:35:14,160 --> 01:35:16,560 Manufacturing Index also falls in March... 1912 01:35:16,561 --> 01:35:17,760 It's started. 1913 01:35:17,760 --> 01:35:19,360 A warning that the economy can slow down. 1914 01:35:19,361 --> 01:35:20,960 Supply Management Institute 1915 01:35:20,960 --> 01:35:22,480 also reported rising prices... 1916 01:35:22,481 --> 01:35:24,080 I will contact my mother. 1917 01:35:26,360 --> 01:35:29,279 Source of slowdown economic growth... 1918 01:35:29,280 --> 01:35:31,439 Time, time and time again, 1919 01:35:31,440 --> 01:35:33,680 I can just beat you, Mark! 1920 01:35:33,680 --> 01:35:35,040 We have known each other for 7 years... 1921 01:35:35,041 --> 01:35:37,400 He is very nagging. I am amazed. 1922 01:35:38,560 --> 01:35:41,280 I can only enjoy it. 1923 01:35:41,320 --> 01:35:43,040 Not possible. It's impossible 1924 01:35:43,040 --> 01:35:44,520 such a big bank. 1925 01:35:45,520 --> 01:35:47,360 See you later, Kathy! 1926 01:35:52,000 --> 01:35:54,199 So? 1927 01:35:54,200 --> 01:35:57,920 According to Kathy it would be better if we sold our short positions. 1928 01:35:57,920 --> 01:35:59,038 What's new? 1929 01:35:59,039 --> 01:36:00,960 And he said Morgan Stanley would buy it. 1930 01:36:00,961 --> 01:36:01,960 Damn! 1931 01:36:02,680 --> 01:36:04,040 What are you saying? 1932 01:36:04,040 --> 01:36:05,640 I told him we wouldn't sell a dime. 1933 01:36:11,880 --> 01:36:15,839 Uh, if you need data in 2005... 1934 01:36:15,840 --> 01:36:19,599 Demands Mr. Fields are very specific for data from past years. 1935 01:36:19,600 --> 01:36:22,440 Good. Then come out. Give my greetings to Lawrence. 1936 01:36:22,440 --> 01:36:23,800 I will deliver. 1937 01:36:26,640 --> 01:36:28,400 After a new week, can you call me back? 1938 01:36:28,401 --> 01:36:30,599 Sorry, Mike. 1939 01:36:30,600 --> 01:36:33,879 Goldman system failed. A lot of messages are missing. 1940 01:36:33,880 --> 01:36:36,039 Yes, B of A says electric power problem, 1941 01:36:36,040 --> 01:36:39,320 and Morgan Stanley says their server is stuck. 1942 01:36:39,320 --> 01:36:40,560 Huh. That's weird. 1943 01:36:40,561 --> 01:36:43,160 I don't think it's possible. 1944 01:36:43,160 --> 01:36:46,720 So what is our position at the market? 1945 01:36:47,560 --> 01:36:49,399 I think it's still the same, Mike. 1946 01:36:49,400 --> 01:36:51,320 What? Can you explain to me? 1947 01:36:51,320 --> 01:36:54,720 Because of how possible the value of an insurance contract 1948 01:36:54,760 --> 01:36:58,999 not affected by death the things insured? 1949 01:36:59,000 --> 01:37:01,920 They are stand-alone markets. Not always related. 1950 01:37:01,920 --> 01:37:03,000 I know that sounds weird, 1951 01:37:03,001 --> 01:37:05,440 but this is a very complicated product. 1952 01:37:06,280 --> 01:37:08,240 They are related. 1953 01:37:08,240 --> 01:37:10,318 They will lose their place of residence, they will lose their jobs, 1954 01:37:10,319 --> 01:37:11,320 they will lose... 1955 01:37:14,200 --> 01:37:16,240 Do you listen to me? 1956 01:37:16,280 --> 01:37:19,000 This is like the end of capitalism. 1957 01:37:19,000 --> 01:37:22,320 This is like the Dark Ages repeated again. 1958 01:37:23,360 --> 01:37:24,600 I don't want to talk to Daddy. 1959 01:37:24,601 --> 01:37:27,839 Okay, I also love Mom. Save your money. 1960 01:37:27,840 --> 01:37:32,000 My mother said I had to drink Xanax and double the dose of Zoloft. 1961 01:37:32,000 --> 01:37:34,038 I ask Bear Stearns to estimate the price of our short positions. 1962 01:37:34,039 --> 01:37:35,720 They say CDO prices have not moved. 1963 01:37:35,721 --> 01:37:37,600 This is really crazy! 1964 01:37:37,600 --> 01:37:39,200 Do you realize it? These people are criminals 1965 01:37:39,201 --> 01:37:41,399 and they should be put in jail. 1966 01:37:41,400 --> 01:37:42,639 Look at the TABX. 1967 01:37:42,640 --> 01:37:44,520 You can see the CDO value ZERO! 1968 01:37:44,520 --> 01:37:45,638 So you know what they are doing, huh? 1969 01:37:45,639 --> 01:37:46,840 You know what they do & apos; right? 1970 01:37:46,841 --> 01:37:48,559 Yeah. They reconstruct. 1971 01:37:48,560 --> 01:37:51,960 They sell CDO, then them to another bank 1972 01:37:51,960 --> 01:37:54,160 and take a short position from something they just sold! 1973 01:37:54,161 --> 01:37:55,840 Let's meet the media! 1974 01:37:55,840 --> 01:37:59,120 This is a great story. Who doesn't want to publish it? 1975 01:38:00,080 --> 01:38:01,839 Robert Redford! 1976 01:38:01,840 --> 01:38:03,360 No, you don't understand! 1977 01:38:03,360 --> 01:38:04,920 I understand friends. I understand. 1978 01:38:06,680 --> 01:38:08,360 What should I do? 1979 01:38:08,360 --> 01:38:10,120 Do you want me to write "Destroy Us"? 1980 01:38:10,121 --> 01:38:12,080 Yes! That's the perfect title! 1981 01:38:12,080 --> 01:38:16,400 Casey, now every bank in this city reconstructs securities 1982 01:38:16,440 --> 01:38:18,240 to customers who don't understand anything. 1983 01:38:18,241 --> 01:38:21,319 And they don't evaluate it until they remove it from registration. 1984 01:38:21,320 --> 01:38:23,879 This level of crime like has not happened before, 1985 01:38:23,880 --> 01:38:27,239 even on Wall Street. 1986 01:38:27,240 --> 01:38:30,359 Jamie... and I'm honest? 1987 01:38:30,360 --> 01:38:32,999 It took me years to establish relationships with Wall Street. 1988 01:38:33,000 --> 01:38:37,239 There are no banks or any rating agencies which will justify stories like this 1989 01:38:37,240 --> 01:38:39,880 just because the news is from two people from... 1990 01:38:39,880 --> 01:38:43,280 Sorry, the trader from the warehouse who thinks this is the end of the world. 1991 01:38:44,800 --> 01:38:45,960 Wow. 1992 01:38:45,960 --> 01:38:47,360 I think you're what you are, Casey. 1993 01:38:47,361 --> 01:38:48,879 I really think so. 1994 01:38:48,880 --> 01:38:50,240 Seriously? 1995 01:38:50,240 --> 01:38:52,280 Yes, Jamie, try to be a father with a 3-year-old child and wife who is currently studying S2. 1996 01:38:52,281 --> 01:38:54,400 I don't want to waste my reputation for your wild hunch. 1997 01:38:54,400 --> 01:38:57,720 Wow. 1998 01:38:58,560 --> 01:38:59,879 Wow. 1999 01:38:59,880 --> 01:39:01,240 Thank you for coming friend. 2000 01:39:01,240 --> 01:39:02,358 It's nice to meet you. 2001 01:39:02,359 --> 01:39:03,600 Yeah, Casey. I always hate you, 2002 01:39:03,601 --> 01:39:05,719 because when you were in college you were a bastard 2003 01:39:05,720 --> 01:39:07,799 and has not changed to this day! 2004 01:39:07,800 --> 01:39:10,599 2005 01:39:10,600 --> 01:39:13,639 Thank you, Charlie. Still living with your mother? 2006 01:39:13,640 --> 01:39:15,199 Charlie, come on! 2007 01:39:15,200 --> 01:39:17,720 Mark Baum again. Contact me. 2008 01:39:17,720 --> 01:39:19,400 Subprime securities fall free. 2009 01:39:19,401 --> 01:39:21,439 Rumors are scattered and credit is getting worse. 2010 01:39:21,440 --> 01:39:24,319 Who can transfer data money faster? I'm sure Goldman. 2011 01:39:24,320 --> 01:39:25,759 Yeah, that's right. 2012 01:39:25,760 --> 01:39:29,000 Jared, chaos occurs. Where are we? 2013 01:39:29,000 --> 01:39:32,240 "Caesar cries, because there is no other world to conquer." 2014 01:39:33,800 --> 01:39:35,080 Shane? 2015 01:39:35,440 --> 01:39:36,680 Shane? 2016 01:39:38,280 --> 01:39:41,039 No one else buys CDO or mortgage securities 2017 01:39:41,040 --> 01:39:42,679 and everyone wants to swap. 2018 01:39:42,680 --> 01:39:45,120 Swaps are the most popular product. 2019 01:39:45,120 --> 01:39:46,998 - That's good for us. - Yes and no. 2020 01:39:46,999 --> 01:39:48,520 I heard from someone who heard from someone... 2021 01:39:48,521 --> 01:39:51,240 No, Alex, no. Sorry. 2022 01:39:54,400 --> 01:39:56,320 Bennie Cleager at Morgan experienced 2023 01:39:56,320 --> 01:39:57,920 big losses in the field of securities. 2024 01:39:59,440 --> 01:40:01,440 Your ship might have already entered the water. 2025 01:40:01,480 --> 01:40:03,800 Maybe it's time to get out a life jacket and get out. 2026 01:40:04,520 --> 01:40:06,600 I was robbed. 2027 01:40:06,600 --> 01:40:09,080 I was robbed! All out! 2028 01:40:09,720 --> 01:40:10,840 Good. 2029 01:40:10,840 --> 01:40:12,920 - Do you feel it? - No. 2030 01:40:19,120 --> 01:40:20,560 What did you hear, Tommy? 2031 01:40:22,720 --> 01:40:23,799 happens. 2032 01:40:23,800 --> 01:40:25,839 Everyone wants our swap. 2033 01:40:25,840 --> 01:40:28,200 Kathy's office is looking for you. 2034 01:40:28,200 --> 01:40:30,640 Currently their tone is different & apos; right? 2035 01:40:31,960 --> 01:40:33,440 That's not good. 2036 01:40:38,280 --> 01:40:39,720 Maybe later. Not at this time. 2037 01:40:39,721 --> 01:40:42,280 This is a joke. Will never. 2038 01:40:45,640 --> 01:40:47,119 I listen. 2039 01:40:47,120 --> 01:40:48,800 - Dr. Burry? - Yes. 2040 01:40:48,800 --> 01:40:50,318 Deeb Winston, Goldman Sachs. 2041 01:40:50,319 --> 01:40:51,878 Look, I'm checking your position. 2042 01:40:51,879 --> 01:40:54,200 I want to talk about your position and make sure everything is reasonable. 2043 01:40:54,201 --> 01:40:57,119 Yes, I think you mean 2044 01:40:57,120 --> 01:41:00,039 You secure a short net position by yourself. 2045 01:41:00,040 --> 01:41:03,000 So you are free and mark swap accurately from me 2046 01:41:03,000 --> 01:41:05,640 because now you want to do that. 2047 01:41:07,840 --> 01:41:10,080 I'm not sure you want what I say. 2048 01:41:10,081 --> 01:41:11,560 I guess... 2049 01:41:13,080 --> 01:41:15,160 I think you've said it. 2050 01:41:23,000 --> 01:41:25,200 Tell Jeff in Goldman that I will not transfer funds. 2051 01:41:25,201 --> 01:41:26,840 This is nonsense! 2052 01:41:34,000 --> 01:41:35,760 Okay, we'll talk about it later. 2053 01:41:36,240 --> 01:41:37,680 Thank you. 2054 01:41:40,200 --> 01:41:42,120 Thank you for coming soon, Mark. 2055 01:41:42,121 --> 01:41:43,760 - Yeah. - Um... 2056 01:41:43,760 --> 01:41:45,078 I know you've heard rumors 2057 01:41:45,079 --> 01:41:46,680 about a number of losses Morgan experienced. 2058 01:41:46,681 --> 01:41:48,640 - Congratulations. - What for? 2059 01:41:49,280 --> 01:41:50,320 Oh 2060 01:41:51,040 --> 01:41:52,600 Thank you. Um... 2061 01:41:52,600 --> 01:41:53,920 Fun? 2062 01:41:54,960 --> 01:41:56,320 Yes. 2063 01:41:57,560 --> 01:41:59,359 Very. Um... 2064 01:41:59,360 --> 01:42:02,280 I want you to know that, um... 2065 01:42:02,280 --> 01:42:04,040 That, yes, Morgan experienced a number of losses, 2066 01:42:04,041 --> 01:42:08,039 but our liquidity is strong and there is nothing to worry about. 2067 01:42:08,040 --> 01:42:11,239 Should Bennie Cleager worry? 2068 01:42:11,240 --> 01:42:12,640 Because of the story 2069 01:42:12,640 --> 01:42:15,480 he suffered a big loss. 2070 01:42:16,800 --> 01:42:18,680 Kathy, come on. We already know each other. 2071 01:42:18,681 --> 01:42:21,280 What happened? 2072 01:42:21,320 --> 01:42:22,959 How bad? 2073 01:42:22,960 --> 01:42:24,919 OK. 2074 01:42:24,920 --> 01:42:28,079 Two years ago, Bennie Cleager worked in the Morgan 2075 01:42:28,080 --> 01:42:31,680 securities division also takes short positions for credit subprime property, $ 2 billion BBB. 2076 01:42:31,680 --> 01:42:33,000 Bennie is smarter than I thought. 2077 01:42:33,001 --> 01:42:34,519 No, it's not smart at all. 2078 01:42:34,520 --> 01:42:36,999 The premium from the swap takes up the profits. 2079 01:42:37,000 --> 01:42:39,000 To balance BBB's short position, 2080 01:42:39,000 --> 01:42:41,600 he sells so many swaps A and AA as protection. 2081 01:42:41,640 --> 01:42:43,319 Lots. 2082 01:42:43,320 --> 01:42:47,080 According to him it is impossible that will be affected. 2083 01:42:47,080 --> 01:42:50,440 Tell me Morgan Stanley doesn't delay the swap contract. 2084 01:42:53,760 --> 01:42:55,919 Damn. 2085 01:42:55,920 --> 01:42:59,600 During this time I tried to find out know who is my opponent, 2086 01:42:59,600 --> 01:43:01,440 and apparently Morgan Stanley. 2087 01:43:02,360 --> 01:43:03,720 Where is the same as me. 2088 01:43:05,440 --> 01:43:08,679 How big is the exposure? $ 3 billion? 2089 01:43:08,680 --> 01:43:10,679 Please don't say more than four. 2090 01:43:10,680 --> 01:43:12,399 I can't answer that. 2091 01:43:12,400 --> 01:43:15,640 Yes, you can answer it, because I entered here 2092 01:43:15,640 --> 01:43:18,720 and people crying along the hallway. 2093 01:43:19,120 --> 01:43:20,800 Kathy, 2094 01:43:20,800 --> 01:43:22,878 You asked me to come for saying everything was fine, 2095 01:43:22,879 --> 01:43:24,120 and apparently not. 2096 01:43:24,760 --> 01:43:26,680 What happened? 2097 01:43:28,880 --> 01:43:31,040 The exposure is as big as... 2098 01:43:32,960 --> 01:43:34,480 $ 15 billion. 2099 01:43:40,400 --> 01:43:41,640 Gosh! 2100 01:43:41,640 --> 01:43:44,080 He always says bad credit is not possible more than 8%. 2101 01:43:44,081 --> 01:43:45,200 Oh, my goodness. 2102 01:43:45,200 --> 01:43:46,400 There will be millions of people losing their homes! 2103 01:43:47,840 --> 01:43:50,080 Yes, but we can't do anything to Morgan Stanley. 2104 01:43:53,040 --> 01:43:54,479 Yes... 2105 01:43:54,480 --> 01:43:56,560 Submit to bankrupt proceedings. 2106 01:43:56,560 --> 01:43:59,680 Morgan falls, all of our accounts go into their balance sheets. 2107 01:44:00,320 --> 01:44:02,120 This is crazy. 2108 01:44:02,120 --> 01:44:03,560 Morgan makes us bet 2109 01:44:03,561 --> 01:44:06,400 2110 01:44:06,400 --> 01:44:08,920 Take a short position for bank stock. Then we wait. 2111 01:44:12,840 --> 01:44:14,840 Or we sell our swaps when the market opens. 2112 01:44:16,600 --> 01:44:19,719 We get bonuses, our investors get profit, we get... 2113 01:44:19,720 --> 01:44:22,520 30 cents per dollar? Not bad. 2114 01:44:22,520 --> 01:44:24,078 That way our returns are 3 times. 2115 01:44:24,079 --> 01:44:25,878 Not if there is no market left as a place to sell. 2116 01:44:25,879 --> 01:44:27,878 Forget it. We won't waste our supporters. 2117 01:44:27,879 --> 01:44:30,320 If Morgan is below expectations, we won't get anything. 2118 01:44:30,321 --> 01:44:31,320 Vinnie. 2119 01:44:33,120 --> 01:44:36,280 Come on. I will say when it's time to sell. 2120 01:44:40,400 --> 01:44:42,879 Look, I understand there are personal elements for you, 2121 01:44:42,880 --> 01:44:45,239 however we have financial responsibility. 2122 01:44:45,240 --> 01:44:47,000 No. There is no. 2123 01:44:47,000 --> 01:44:49,360 There is no one responsible. 2124 01:44:49,400 --> 01:44:52,599 Fuck with responsibility. Are you kidding? 2125 01:44:52,600 --> 01:44:54,800 The big bastards at the bank will take... 2126 01:44:54,800 --> 01:44:55,920 Do you want dessert? 2127 01:44:55,921 --> 01:44:57,640 Please, we are talking! 2128 01:44:58,440 --> 01:44:59,920 - Please let us. - Sorry. 2129 01:45:02,080 --> 01:45:04,959 We will wait, and we will wait, 2130 01:45:04,960 --> 01:45:06,639 and keep waiting 2131 01:45:06,640 --> 01:45:10,720 until they feel the pain, until they bleed. 2132 01:45:10,720 --> 01:45:12,918 - This is what I want. - But what about the clients 2133 01:45:12,919 --> 01:45:14,318 who entrust their funds to us... 2134 01:45:14,319 --> 01:45:15,558 I will say when it's time to sell. 2135 01:45:15,559 --> 01:45:16,678 This is not about you. 2136 01:45:16,679 --> 01:45:17,998 This is not about you and mahogany soapbox 2137 01:45:17,999 --> 01:45:19,238 - Upper East Side. - Hey! Hey! 2138 01:45:19,239 --> 01:45:20,560 I will say when it's time to sell! 2139 01:45:22,160 --> 01:45:23,920 It's up to you, Mark. 2140 01:45:30,640 --> 01:45:32,400 Do you hear the news? 2141 01:45:34,280 --> 01:45:36,640 OK. So there are not only two mortgage protection funds 2142 01:45:36,680 --> 01:45:38,520 the guaranteed Bear Stearns that rises to the surface, 2143 01:45:38,521 --> 01:45:41,719 but now there is a legal claim to Bear. 2144 01:45:41,720 --> 01:45:42,999 Gosh! 2145 01:45:43,000 --> 01:45:45,600 Come on! Push! Push! 2146 01:45:45,600 --> 01:45:47,118 So what? Now Bear can really fall down. 2147 01:45:47,119 --> 01:45:48,960 - This is a risk that we should not take. - Then how? 2148 01:45:48,961 --> 01:45:51,040 We buy our 80% swap from Bear. 2149 01:45:51,040 --> 01:45:52,720 - We can lose everything. - So how? 2150 01:45:52,721 --> 01:45:54,240 - Hey, sir? - Wait a minute! 2151 01:45:54,240 --> 01:45:55,318 That's my opinion. 2152 01:45:55,319 --> 01:45:56,598 We buy everything. 2153 01:45:56,599 --> 01:45:57,838 We don't know how to sell it at all. 2154 01:45:57,839 --> 01:45:59,358 I know. We must contact Ben to do it. 2155 01:45:59,359 --> 01:46:01,400 I tried contacting him and he didn't reply. 2156 01:46:01,440 --> 01:46:03,798 No. He is on vacation with his wife's family. 2157 01:46:03,799 --> 01:46:04,960 They are in England. 2158 01:46:05,880 --> 01:46:07,040 What? 2159 01:46:14,640 --> 01:46:16,280 - Hello, Ben. Hey, - You guys? 2160 01:46:16,320 --> 01:46:17,958 Yeah, we're here. Can you hear us? 2161 01:46:17,959 --> 01:46:19,640 - Do you hear? - Yes, we heard. 2162 01:46:19,641 --> 01:46:23,559 Yes. It's very difficult to get signals or Wi-Fi. 2163 01:46:23,560 --> 01:46:26,519 I will try to sell $ 200 million worth of securities. 2164 01:46:26,520 --> 01:46:29,160 In a pub. That smells like sheep. 2165 01:46:29,160 --> 01:46:30,238 You can do it. 2166 01:46:30,239 --> 01:46:31,600 I don't want to pressure you, Ben 2167 01:46:31,601 --> 01:46:34,320 but if you don't succeed, we lose everything. 2168 01:46:34,320 --> 01:46:37,600 OK. Let's see how Credit Suisse tastes. 2169 01:46:42,760 --> 01:46:44,040 Here is Brownfield Fund. 2170 01:46:44,041 --> 01:46:46,280 I want to sell my Bad Credit Swap. 2171 01:46:46,280 --> 01:46:48,000 OK. How much do you have? 2172 01:46:48,001 --> 01:46:50,279 20 pieces of tranche AA from CDO A.B.S. 2173 01:46:50,280 --> 01:46:52,839 A.B.S.? Is... Is it bad enough? 2174 01:46:52,840 --> 01:46:55,119 Of course. Very bad. 2175 01:46:55,120 --> 01:46:56,719 What is the abstract value? 2176 01:46:56,720 --> 01:46:59,679 Nominal value at maturity amounting to 205 million dollars. 2177 01:46:59,680 --> 01:47:02,320 Well, we can, in number 50. 2178 01:47:02,320 --> 01:47:03,720 No. We want at least 100 million. 2179 01:47:03,721 --> 01:47:07,519 100 million? Who are you, drug dealer or banker? 2180 01:47:07,520 --> 01:47:10,080 Because if you are a banker, you can leave now! 2181 01:47:10,080 --> 01:47:11,358 I don't know what we can with that number. 2182 01:47:11,359 --> 01:47:12,560 Just give your best number? 2183 01:47:12,561 --> 01:47:15,200 Yes. Chuck 100 million for me, friend. 2184 01:47:15,200 --> 01:47:16,918 I think our difference is far away. 2185 01:47:16,919 --> 01:47:19,360 Listen, if you don't want this transaction, just close the phone. 2186 01:47:21,800 --> 01:47:23,360 That's what I thought. 2187 01:47:24,120 --> 01:47:26,120 - 90 million. - 70. 2188 01:47:27,120 --> 01:47:29,200 85. 2189 01:47:29,200 --> 01:47:31,160 - 78. - 84. 2190 01:47:32,360 --> 01:47:34,400 - 78. - 84. 2191 01:47:36,200 --> 01:47:38,080 Here Dr. Burry. 2192 01:47:38,080 --> 01:47:40,920 It seems that the collapse of the financial sector is near. 2193 01:47:41,920 --> 01:47:44,240 Let's start selling my position. 2194 01:47:44,240 --> 01:47:46,080 $ 1.3 billion. 2195 01:47:47,600 --> 01:47:49,440 Of course, I'll wait. 2196 01:47:51,228 --> 01:48:04,501 Greetings Lawrance, your total profit of $ 489 million from Scion Capital has been entered into your account. Thank you again. 2197 01:48:13,240 --> 01:48:15,599 So, I'm right. 2198 01:48:15,600 --> 01:48:18,479 I have a lot of problems for 2 years, 2199 01:48:18,480 --> 01:48:20,759 but I'm right. 2200 01:48:20,760 --> 01:48:23,440 And everyone is wrong. 2201 01:48:23,440 --> 01:48:26,600 And, really, I got a bonus from that. Demand me. 2202 01:48:27,280 --> 01:48:28,759 Do you know? 2203 01:48:28,760 --> 01:48:32,479 This is a lot of money. I understand. I can feel your judgment on me. 2204 01:48:32,480 --> 01:48:34,479 Visible. 2205 01:48:34,480 --> 01:48:39,080 But, hey, I've never said I'm a hero in this story. 2206 01:48:39,080 --> 01:48:41,640 Hey, Ben. How? 2207 01:48:42,840 --> 01:48:44,200 Eight... 2208 01:48:44,920 --> 01:48:46,639 Sorry? 2209 01:48:46,640 --> 01:48:49,000 No. 80 million. 2210 01:48:49,000 --> 01:48:50,678 $ 80 million, $ 80 million, is good enough & isn't it? 2211 01:48:50,679 --> 01:48:51,838 - 80 is great. - Is that good enough? 2212 01:48:51,839 --> 01:48:53,120 - 80 extraordinary, Ben. - Okay. 2213 01:48:53,121 --> 01:48:55,799 Thank you. Thank you very much. 2214 01:48:55,800 --> 01:48:57,760 Mostly to UBS. 2215 01:48:57,760 --> 01:48:59,640 You are very lucky. The biggest bank 2216 01:48:59,641 --> 01:49:02,719 in France today freezes the customer's money market account. 2217 01:49:02,720 --> 01:49:04,359 This reaches Europe. 2218 01:49:04,360 --> 01:49:06,280 Greece and Iceland have collapsed. 2219 01:49:06,280 --> 01:49:07,720 Spain is experiencing a crisis. 2220 01:49:07,721 --> 01:49:09,720 Seriously? Shit 2221 01:49:09,720 --> 01:49:11,598 Ben, contact us when you return. 2222 01:49:11,599 --> 01:49:13,000 However, hey, before you close, 2223 01:49:13,001 --> 01:49:15,040 uh, I'm just curious... 2224 01:49:15,720 --> 01:49:17,000 Um... 2225 01:49:18,120 --> 01:49:20,200 Why do you do this for us? 2226 01:49:21,160 --> 01:49:23,480 You don't need to. Uh... 2227 01:49:23,480 --> 01:49:28,040 Thank you. But why? 2228 01:49:28,080 --> 01:49:31,519 You say you want to be rich. Now you are rich. 2229 01:49:31,520 --> 01:49:32,680 Goal! 2230 01:49:32,680 --> 01:49:34,520 Pamplona manages to score. 2231 01:49:38,520 --> 01:49:41,120 Along with the property market and banks experiencing chaos, 2232 01:49:41,120 --> 01:49:43,598 only one who refuses sells his short position. 2233 01:49:43,599 --> 01:49:44,800 Mark Baum. 2234 01:49:48,200 --> 01:49:50,318 So it's very perfect when he is asked to speak 2235 01:49:50,319 --> 01:49:52,240 at a conference against Bruce Miller, 2236 01:49:52,241 --> 01:49:55,080 investors who are always optimistic. 2237 01:49:55,080 --> 01:49:57,400 After him and Mark argue, Alan Greenspan, 2238 01:49:57,401 --> 01:50:01,080 one of the architects of the whole crisis is scheduled to speak. 2239 01:50:01,080 --> 01:50:04,080 All people in Mark's office were present, he even invited his friends. 2240 01:50:05,360 --> 01:50:08,839 This is the match of Ali vs. Foreman in the financial world. 2241 01:50:08,840 --> 01:50:11,320 Realistic against the fool. 2242 01:50:11,320 --> 01:50:12,920 And if it looks too perfect, 2243 01:50:12,921 --> 01:50:15,680 believe me, this really happened. 2244 01:50:17,000 --> 01:50:23,560 Welcome everyone. Let's give a warm welcome to 2245 01:50:23,560 --> 01:50:27,480 Mr. Bruce Miller and Mark Baum. 2246 01:50:44,320 --> 01:50:45,800 Take control of yourself. 2247 01:50:47,080 --> 01:50:49,320 So as some of you know, Bear Stearns 2248 01:50:49,321 --> 01:50:51,959 just received a loan from JP Morgan. 2249 01:50:51,960 --> 01:50:54,919 Of course, we have to wait and see how the market responds, 2250 01:50:54,920 --> 01:50:58,679 but it should be able to answer public attention about the health of the bank. 2251 01:50:58,680 --> 01:51:01,119 You have no plans to sell 2252 01:51:01,120 --> 01:51:03,760 Your stock at Bear of $ 200 million? 2253 01:51:03,760 --> 01:51:05,440 No. Maybe, when it's done from here, 2254 01:51:05,441 --> 01:51:07,360 I will buy more. 2255 01:51:08,760 --> 01:51:12,280 At different points of view, Mr. Baum. 2256 01:51:14,680 --> 01:51:16,760 I have to stand up. 2257 01:51:19,520 --> 01:51:21,519 Okay, hi. 2258 01:51:21,520 --> 01:51:24,280 My firm's research is quite simple. 2259 01:51:24,280 --> 01:51:26,158 Wall Street takes a brilliant idea, 2260 01:51:26,159 --> 01:51:27,960 mortgage securities from Lewis Ranieri, 2261 01:51:27,961 --> 01:51:30,279 and turn it into an atomic bomb 2262 01:51:30,280 --> 01:51:32,799 with embezzlement and ignorance 2263 01:51:32,800 --> 01:51:35,519 which in its journey damages the world economy. 2264 01:51:35,520 --> 01:51:38,199 How do you really feel? 2265 01:51:38,200 --> 01:51:40,199 I'm glad you still have a sense of humor. 2266 01:51:40,200 --> 01:51:42,639 If you become yourself surely my humor tastes gone. 2267 01:51:42,640 --> 01:51:46,720 Anyone who knows me knows that 2268 01:51:46,720 --> 01:51:49,280 it doesn't matter to me to say people are wrong if that is the truth. 2269 01:51:49,320 --> 01:51:53,480 Bear Stearn refutes rumors of liquidity problems. 2270 01:51:53,480 --> 01:51:55,760 Gosh, it's become 39 now! 2271 01:51:57,920 --> 01:52:00,560 We live in an era of American embezzlement. 2272 01:52:00,560 --> 01:52:03,360 Not only banking, but also in government, 2273 01:52:03,400 --> 01:52:06,399 education, religion, food, 2274 01:52:06,400 --> 01:52:08,599 even baseball. 2275 01:52:08,600 --> 01:52:11,839 What bothers me is not 2276 01:52:11,840 --> 01:52:15,920 because darkening is not good or embezzlement is evil. 2277 01:52:15,920 --> 01:52:17,840 That's it for 15,000 years 2278 01:52:18,640 --> 01:52:20,280 embezzlement and short-term thinking 2279 01:52:20,281 --> 01:52:22,759 never works. 2280 01:52:22,760 --> 01:52:25,759 - Gosh, Bear in position 37... - Never once. 2281 01:52:25,760 --> 01:52:29,119 Finally, people are trapped, not as planned. 2282 01:52:29,120 --> 01:52:30,680 Everything falls. 2283 01:52:30,680 --> 01:52:32,960 When do we forget about that? 2284 01:52:37,120 --> 01:52:39,959 I think we are better than this. I really think so. 2285 01:52:39,960 --> 01:52:42,119 And in fact we are no better than that 2286 01:52:42,120 --> 01:52:44,919 doesn't make me feel better and better. 2287 01:52:44,920 --> 01:52:47,840 That makes me... sad. 2288 01:52:47,840 --> 01:52:50,200 Every time I press "refresh" the value decreases. 2289 01:52:51,880 --> 01:52:53,800 And fun seeing 2290 01:52:53,800 --> 01:52:56,200 Wall Street actors who are arrogant and stupid turned out to be wrong, 2291 01:52:56,201 --> 01:52:59,319 and you're wrong, sir, 2292 01:52:59,320 --> 01:53:02,959 I know, at the end of the day 2293 01:53:02,960 --> 01:53:05,799 ordinary people who will become 2294 01:53:05,800 --> 01:53:08,639 victims of all this. 2295 01:53:08,640 --> 01:53:10,879 Because it's always like that, always. 2296 01:53:10,880 --> 01:53:11,999 Now 32. 2297 01:53:12,000 --> 01:53:13,480 This is really crazy. 2298 01:53:13,480 --> 01:53:15,480 That's my statement. thanks. 2299 01:53:16,840 --> 01:53:18,320 Let's see Deutsche. 2300 01:53:18,321 --> 01:53:21,319 Are parties optimistic about having a response? 2301 01:53:21,320 --> 01:53:24,959 It's just that, along Wall Street history, 2302 01:53:24,960 --> 01:53:27,319 there has never been a bank investment that has fallen 2303 01:53:27,320 --> 01:53:29,839 unless it turns out to do criminal activity. 2304 01:53:29,840 --> 01:53:33,679 So, really, I insist with Bear Stearns optimism. 2305 01:53:33,680 --> 01:53:36,160 Mr. Miller, Sorry. Short question. 2306 01:53:36,160 --> 01:53:38,000 Since you two started the conversation, 2307 01:53:38,001 --> 01:53:40,960 Bear Stearns stock values have dropped by more than 38%. 2308 01:53:40,960 --> 01:53:42,560 Will you still buy more? 2309 01:53:42,600 --> 01:53:46,680 Yes, of course, of course I will buy more. Why not? 2310 01:53:47,160 --> 01:53:48,240 Boom. 2311 01:53:51,400 --> 01:53:52,720 Gosh! 2312 01:53:54,200 --> 01:53:58,360 It closes the first part of our presentation. 2313 01:53:58,360 --> 01:54:03,080 Next, will be present former chairman of the Central Bank, 2314 01:54:03,120 --> 01:54:04,960 Alan Greenspan. 2315 01:54:04,960 --> 01:54:06,320 Ladies and gentlemen? 2316 01:54:24,440 --> 01:54:25,880 ... today employees Lehman Brothers, 2317 01:54:25,881 --> 01:54:29,559 along with Wall Street stock that goes down to zero. 2318 01:54:29,560 --> 01:54:31,559 The collapse of a fragile New York bank 2319 01:54:31,560 --> 01:54:35,279 following the hustle and bustle of market volatility 2320 01:54:35,280 --> 01:54:38,240 and fear of the world economy. 2321 01:54:38,240 --> 01:54:39,960 I have to look inside. 2322 01:54:40,720 --> 01:54:42,080 How do you do it? 2323 01:54:42,800 --> 01:54:44,599 Come on. 2324 01:54:44,600 --> 01:54:47,800 I leave my cellphone inside. I have already removed my card. 2325 01:54:47,800 --> 01:54:49,280 Don't mind if I borrow your card? 2326 01:54:49,281 --> 01:54:51,880 I don't care anymore. You can do anything. 2327 01:54:59,760 --> 01:55:01,559 Go straight to the transport. 2328 01:55:01,560 --> 01:55:03,439 Don't talk to the media. 2329 01:55:03,440 --> 01:55:06,999 After 18 years, just asked to leave? Very impressive! 2330 01:55:07,000 --> 01:55:09,919 I will talk to anyone I want! 2331 01:55:09,920 --> 01:55:12,599 Don't talk to the media. 2332 01:55:12,600 --> 01:55:14,640 Go straight to the transport. 2333 01:55:14,640 --> 01:55:15,840 Don't talk to... 2334 01:55:18,360 --> 01:55:19,600 Hey, listen, you want to eat tonight? 2335 01:55:19,601 --> 01:55:22,120 There are, uh, Cuban nuances 2336 01:55:22,120 --> 01:55:24,440 just open on the Lower East Side. It should be good. 2337 01:55:24,441 --> 01:55:26,120 - Oh, really? - Yeah. 2338 01:55:26,600 --> 01:55:28,199 You and me? 2339 01:55:28,200 --> 01:55:29,840 Yeah, or someone else. 2340 01:55:29,840 --> 01:55:31,680 - Looks like okay. I want. - Yeah. 2341 01:55:31,681 --> 01:55:32,960 Finally. 2342 01:55:33,360 --> 01:55:34,960 Mark, hey. 2343 01:55:34,960 --> 01:55:36,358 Here is a blood flood. 2344 01:55:36,359 --> 01:55:37,920 Morgan's stock loses half its value. 2345 01:55:37,921 --> 01:55:40,279 Down to 23.10. It's free fall. 2346 01:55:40,280 --> 01:55:43,520 Clients want to talk to you about withdrawing their funds. 2347 01:55:43,520 --> 01:55:47,000 Now or not at all, Mark. We have to sell. 2348 01:55:50,320 --> 01:55:51,480 Mark. 2349 01:55:52,880 --> 01:55:54,360 Mark, did you hear? 2350 01:55:54,400 --> 01:55:55,960 Mailbox one. 2351 01:55:56,000 --> 01:55:59,040 You have 15 messages. 2352 01:56:00,320 --> 01:56:01,840 Mike, I can't contact you. 2353 01:56:01,841 --> 01:56:04,320 Can you contact me immediately? 2354 01:56:05,640 --> 01:56:08,719 This is Jack. Do you buy stock? 2355 01:56:08,720 --> 01:56:11,919 The middle market is in a very low _ state. This is crazy! 2356 01:56:11,920 --> 01:56:14,679 2357 01:56:14,680 --> 01:56:16,200 In my profile it says, 2358 01:56:16,200 --> 01:56:18,640 "I'm a medical student with just one eye, 2359 01:56:18,641 --> 01:56:20,640 " clumsy social behavior, 2360 01:56:20,641 --> 01:56:24,200 "and with loans education of $ 145,000" 2361 01:56:24,880 --> 01:56:26,640 He writes back, 2362 01:56:26,640 --> 01:56:28,200 "You're the one I'm looking for." 2363 01:56:29,200 --> 01:56:31,039 He is truly honest. 2364 01:56:31,040 --> 01:56:32,919 So I will be honest. 2365 01:56:32,920 --> 01:56:37,239 The housing property crisis symbolizes the biggest financial opportunity... 2366 01:56:37,240 --> 01:56:40,359 Making money is not as I thought. 2367 01:56:40,360 --> 01:56:45,040 This business kills important parts of life. 2368 01:56:45,040 --> 01:56:48,200 Parts that don't exist have to do with business. 2369 01:56:50,360 --> 01:56:52,520 For the past 2 years, my feelings... 2370 01:56:53,720 --> 01:56:56,119 like eating yourself. 2371 01:56:56,120 --> 01:56:58,879 Everyone I respect 2372 01:56:58,880 --> 01:57:01,640 no longer want to talk to me 2373 01:57:01,640 --> 01:57:03,480 except if you use a lawyer. 2374 01:57:07,200 --> 01:57:09,399 People 2375 01:57:09,400 --> 01:57:13,439 want authority that allows they judge something... 2376 01:57:13,440 --> 01:57:18,999 but they choose that authority not based on facts or results. 2377 01:57:19,000 --> 01:57:23,719 They choose it because of power and intimacy. 2378 01:57:23,720 --> 01:57:26,280 And I'm not 2379 01:57:26,280 --> 01:57:29,360 and never "familiar" at all. 2380 01:57:31,280 --> 01:57:33,160 So... 2381 01:57:33,160 --> 01:57:36,360 So, I entered the realization phase 2382 01:57:36,400 --> 01:57:39,240 that I have to close the funds. 2383 01:57:39,240 --> 01:57:42,360 With respect, Michael J. Burry, M.D. 2384 01:58:42,080 --> 01:58:44,160 This is not what I imagined. 2385 01:58:46,160 --> 01:58:47,400 What do you think we will find? 2386 01:58:47,440 --> 01:58:48,440 I don't know. 2387 01:58:50,320 --> 01:58:51,840 Grow up. 2388 01:58:55,760 --> 01:58:57,280 Mark, are you still there? 2389 01:58:59,920 --> 01:59:01,440 Mark? 2390 01:59:01,440 --> 01:59:04,320 Paulson and Bernanke have just left the White House. 2391 01:59:09,680 --> 01:59:11,840 There will be a bailout. 2392 01:59:13,440 --> 01:59:17,160 It should be like that & right? 2393 01:59:17,200 --> 01:59:18,440 The market will collapse. 2394 01:59:18,441 --> 01:59:19,840 They already know. 2395 01:59:19,840 --> 01:59:21,440 Cash won't stop flowing from the ATM. 2396 01:59:21,441 --> 01:59:23,280 They must limit it. 2397 01:59:23,280 --> 01:59:25,680 They already know the tax payer who will bear it. 2398 01:59:25,681 --> 01:59:28,280 They are not stupid. It's just that they don't care. 2399 01:59:28,280 --> 01:59:30,480 Yeah. Because they are criminals. 2400 01:59:32,360 --> 01:59:36,120 But at least we will see some of them go to prison. 2401 01:59:36,120 --> 01:59:39,360 Right? I mean, they have to break up banks. 2402 01:59:40,480 --> 01:59:41,880 I mean, the party is over. 2403 01:59:41,881 --> 01:59:44,560 I don't know, Vinnie. 2404 01:59:47,320 --> 01:59:48,880 I think 2405 01:59:48,880 --> 01:59:50,840 in the next few years people will do 2406 01:59:50,841 --> 01:59:54,319 what they always do when the economy fails. 2407 01:59:54,320 --> 01:59:57,839 They will blame immigrants and poor people. 2408 01:59:57,840 --> 02:00:00,280 But Mark is wrong. 2409 02:00:00,280 --> 02:00:02,320 In the next few years, hundreds of bankers 2410 02:00:02,321 --> 02:00:05,119 and ranking agency officials enter prison. 2411 02:00:05,120 --> 02:00:07,319 SEC completely overhauled 2412 02:00:07,320 --> 02:00:10,440 And the Board has no other choice but to break up big banks and provide regulations for mortgage and derivative industries. 2413 02:00:10,440 --> 02:00:12,920 Just kidding. 2414 02:00:17,720 --> 02:00:19,320 The bank takes money from given by Americans and use it to give a big bonus for yourself 2415 02:00:19,320 --> 02:00:21,558 and lobby the Council to cancel major reforms. 2416 02:00:21,559 --> 02:00:23,958 And then they blame immigrants and the poor. 2417 02:00:23,959 --> 02:00:26,398 And this time, even the teacher. 2418 02:00:26,399 --> 02:00:28,720 2419 02:00:28,721 --> 02:00:30,880 2420 02:00:32,240 --> 02:00:33,558 And when everything is done, 2421 02:00:33,559 --> 02:00:35,280 only one banker goes to jail. 2422 02:00:36,240 --> 02:00:37,440 This damn bastard. 2423 02:00:37,441 --> 02:00:40,240 Kareem Serageldin from Credit Suisse. 2424 02:00:40,240 --> 02:00:42,640 He hid a few billion losses in mortgage securities, 2425 02:00:42,641 --> 02:00:45,920 something that is mostly done by large banks during a crisis. 2426 02:00:47,520 --> 02:00:49,560 Mark, are we selling now? 2427 02:00:51,360 --> 02:00:53,920 The funds can generate nearly $ 1 billion. 2428 02:00:53,920 --> 02:00:55,560 You will get $ 200 miles clean, Mark. 2429 02:00:56,720 --> 02:00:59,719 After we sell, 2430 02:00:59,720 --> 02:01:01,679 we will be the same as them. 2431 02:01:01,680 --> 02:01:03,120 You know that. 2432 02:01:03,120 --> 02:01:04,800 No. In this case, we are not bad people. 2433 02:01:04,801 --> 02:01:08,400 We don't deceive the American people and prey on their dreams 2434 02:01:08,400 --> 02:01:10,040 to own a house. Okay? 2435 02:01:10,080 --> 02:01:12,320 Those who do it. 2436 02:01:12,320 --> 02:01:14,640 And now we will beat them. 2437 02:01:19,720 --> 02:01:21,760 One billion dollars. 2438 02:01:23,400 --> 02:01:24,759 Right. 2439 02:01:24,760 --> 02:01:28,080 But we must close our position or we can lose. 2440 02:01:28,080 --> 02:01:30,920 Now or not at all, Mark. 2441 02:01:40,080 --> 02:01:41,480 OK. 2442 02:01:45,280 --> 02:01:46,680 Sell everything. 2443 02:01:54,135 --> 02:01:59,160 When all the riots are over, 5 trillion dollars in pensions, real 2444 02:01:59,161 --> 02:02:04,343 estate, 401k retirement plan, savings and securities are lost. 2445 02:02:04,941 --> 02:02:09,192 8 million people lose jobs, 6 million lose 2446 02:02:09,193 --> 02:02:12,560 place of residence. And that's only in America. 2447 02:02:15,479 --> 02:02:19,906 Mark Baum's wife, Synthia, says after the collapse of Mark becomes 2448 02:02:19,907 --> 02:02:24,398 people are friendly and never say "have lost" to anyone. 2449 02:02:25,128 --> 02:02:29,444 Danny, Vinnie and Porter are still running their business 2450 02:02:29,445 --> 02:02:33,179 in Manhattan... the Nobu restaurant. 2451 02:02:36,121 --> 02:02:40,218 Charlie Geller and Jamie Shipley try to sue the rating agent 2452 02:02:40,219 --> 02:02:43,918 but laughed at by all legal counsel offices. 2453 02:02:44,799 --> 02:02:47,576 Jamie still runs Brownfield but Charlie leaves New 2454 02:02:47,577 --> 02:02:50,176 York to live with Charlotte and build a family. 2455 02:02:51,096 --> 02:02:53,915 Ben Rickert is currently living with his wife on large plantations. They have lots of seeds. 2456 02:02:53,916 --> 02:02:56,857 Michael Burry several times contact the government 2457 02:02:59,820 --> 02:03:02,216 hope someone wants to interview him to find out 2458 02:03:02,217 --> 02:03:04,894 how can he first know the system will 2459 02:03:04,895 --> 02:03:07,197 collapsed for years before compared to others 2460 02:03:07,198 --> 02:03:09,733 No one has returned their wishes. However he was audited four times and questioned by the FBI. 2461 02:03:10,629 --> 02:03:16,501 The small investment that is still done is one commodity: AIR. 2462 02:03:17,020 --> 02:03:24,438 In 2015, several large banks began selling 2463 02:03:27,658 --> 02:03:31,743 billions of products called "Opportunity Tranche Inden" 2464 02:03:31,744 --> 02:03:36,495 According to Bloomberg News, is just another term from CDO. 2465 02:03:36,847 --> 02:03:44,479 Translated by: www.subtitlecinema.com 2466 02:03:47,520 --> 02:03:51,520