economics ryan gosling

100 Days of Trump, 27/100: The Big Short

Ok so this is a tad awkward because this movie isn’t actually good.  From a directorial perspective it is actually pretty awful, the strict is extremely badly planed, the dialogue is awkward and the movie is no were near as clever as it thinks it is, really the only thing it has going for it is the acting, the editing, and the subject matter.  Oh and of course this film has no female characters so just a head up.  But turns out, sometimes that is enough, and it is important to understand, a lot of Trump voters had just watched this movie before voting, if you want to understand the problem, we need to look at the event which made this level of extremism possible, cause frankly there aren’t enough movies about the 2008 crash which actually like….explain it.   And with the exception of one stupid scene( The Selina Gomez scene doesn’t actually make sense) this does a good job of explaining exactly why so many fucking experts were unable to predict the 2008 crash, even when it was really obvious the whole fucking thing was going to fall apart.  

I want it noted for the record that when I was in high school studying the great depression i predicted the 08 crash, so this movie appeals to me personally a great deal.  I got the date wrong though, i thought it would be 2007 or 2009.  Ok moving on

The movie follows all of the people who actually saw this coming, mostly because they made the effort to actually examine the bonds in detail rather than simply dismissing them out of hand.  So some guys look at the loans in detail and go “Wait a second, this shit sticks” and tells other people.  And they go “Wait….the entire economy is going to crash, why isn’t anybody talking about this?  If it was going to crash, somebody would have noticed this first right?”  So everybody assumes somebody knows what they are doing and keep on keeping on, because obviously a giant economic crash would get the attention of somebody important right?  LIke nobody would just ignore this right?  Like the Government, Banks, Wall street, major CEOs and the Rating’s agencies couldn’t all be asleep at the wheel right?  Some of this super smart economists from the Austrian School would have done something about this right?  Well turns out everybody fucking involved is a moron and all of them are complicet, because Austrian/Supply Side/Neoliberal economics do not work, and all they do is create long term problems.   

Yet again, the 2008 crash was a product of deregulation, and severs as yet another reason why Supply Side economics are terrible, because if the goverment doesn’t regulate bonds to ensure that they aren’t terrible, private companies and banks in particular are going to run wild because corporations cannot think long term, they just don’t have that ability, they do what works in the short term and hope to bail out right before everything goes to shit.  And because the problems emerge decades down the line, we don’t blame the right people, the crash is directly the results of Ronald Reagan, Bill Clinton, and the Bushes but they don’t get enough blame for fucking this up.  And of course, nobody got punished.  This system was put in place in 1980, and since it has been 28 years since then everybody involved in the system buys into the initial assumption made in 1980, because all the people who said “Hey this is going to cause a crash in 30 years” weren’t paid attention to so literally everybody involved from the bank to the Fed to the Rating Agencies to the investors all buy into the false premise made in 1980 that deregulation is an inherent economic good.  So everybody buys into this system, every single person in the process to get there has to be a complete deregulation tool and they can’t see the fucking problem.  

Also critically the regulations agencies have had their budgets cut, they can’t do their job.  So if you taxed the rich and actually payed for regulation, we wouldn’t have the 2008 crash.  The film also talks about Wall Streets absolute bullshit pseudo macho bullshit, everybody is totally convinced they are this sort of lone individual bootstraps character who blazes a trail but they are all the same fucking hacks doing the same things as everybody else. And the amount of money is so overwhelming it is kinda hard to mentally comprehend and critically….the Wall Street execs don’t understand this shit any more than we do.  And when people are cynical about the whole process, they still assume some of it is working, when the whole thing is actually more corrupt than even the anti Wall Street people assume.    The whole thing was falling apart for over a year and nobody fucking did anything.  this is why Hillary Clinton was such a terrible choice, because the Clintons helped make this happen in the first place and tied by the hip to Wall Street.  

But most important of all, nobody blamed people correct, everybody instead blamed hte wrong peopel, the bailout was necessary but it didn’t come with the punishments for Wall Street, instead everybody in power pretended that everything was fine…and them blamed immigrants and poor people.  And elected a CEO and thought he would fix it.  Look, I know the movie isn’t all that good, but if there is a single clip to watch, let it be this last one, the most important of them all.

America never seems to learn the lesson every time and the people who do it always get away with it. Welcome to Trump’s America.