The Big Short is based on a true story about four outsiders in the finance who predicted the credit and housing
bubble collapse of the late 2000s.
The film centers around the world of high finance where four outsiders predict the credit and house
bubble collapse of the mid-200's and decide to take on the banks for the greed they exhibited at the time.
The query was in response to a declaration made by someone closely connected to LP's that the current fundraising environment for venture is worse than what we saw following the housing
bubble collapse of 2008.
Not exact matches
People are terrified
of another dot - com
collapse, but there's a big distinction between a
bubble bursting and a market correction.
All that value can disappear pretty quickly, as the
collapsing of the Dotcom
bubble and the Great Recession have taught us.
Much
of the rest
of the interview is spent fear mongering about a
bubble in the bond market and its inevitable
collapse:
Instead, the
collapse of stock market and real estate
bubbles forced its government to commence one
of history's greatest Keynesian experiments.
Does the high - profile demise
of the California photovoltaic cell manufacturer Solyndra portend the
collapse of a heavily subsidized solar energy
bubble?
Bubbles from the past include the Dutch tulip bulb crash
of 1637 and the dot.com tech stock meltdown in 2000 when millions
of dollars was invested in new internet companies, many
of which later
collapsed.
But others were sharply critical, insisting the program only blows more air into a housing
bubble on the verge
of collapse.
Pessimism over the Chinese economy and a spate
of bad news, including the
collapse of China's stock market
bubble and the weakening
of the renminbi, made projecting confidence even more important this year.
The real estate
bubble in Canada won't
collapse and prices will keep a growth rate
of 6 % for the next 21,054,656,706,543,581 years.
The only expansion cycles greater than the current experience occurred in the mid-1980s (1984 - 87, ending with the Black Monday
collapse) and during the Tech
Bubble of the late 1990s.
Michael Lewis examines how some investors managed to take positions that benefitted from a
collapse of the housing
bubble in The Big Short: Inside the Doomsday Machine.
The postwar trade partnership, which worked so well during the «miracle» years
of Japanese growth, has been in decline since the
collapse of Japan's «
bubble...
Weakening currencies in the post-Soviet states threaten to raise default rates on foreign - currency mortgages as
collapse of the Baltic real estate
bubble drags down Swedish banks, while the Hungarian property plunge threatens Austrian banks.
The tendency is for banking systems — and the currency — to
collapse after such
bubbles, as falling prices for their real estate collateral (aggravated by an exodus
of flight capital) hollow out the banking system's balance sheets.
When I headed an international investigative economic team in 2010, we visited Latvia's bank insurance agency and were told that they had anticipated a
collapse of the
bubble.
Across the Pacific, the
collapse of Japan's overheated «
bubble economy»
of the late 1980s, sapped the vitality and much
of the confidence
of the main engine
of Asian economic growth for a decade.
Once again, there is minimal demand for autos and housing, and that is partly because the market is still saturated with both
of these credit - sensitive big - ticket items after an unprecedented credit and consumer
bubble that went absolutely parabolic in the seven years prior to the
collapse in the financial markets an asset values.
The bursting
of the housing
bubble — which entailed a
collapse in home values and a flood
of foreclosures — and spiking unemployment led millions
of Americans to realize that their «middle - class» lives were just a paycheck or two from evaporating.
But our year - to - date returns might now be into a second digit had I recognized that investors have learned utterly nothing from the
bubbles and
collapses of the past decade.
If the speculative
bubbles and crashes across market history have taught us anything (particularly the repeated episodes
of recklessness we've observed over the past two decades), it's this: regardless
of the level
of valuation at any point in time, we have to allow for the potential for investors to adopt a psychological preference toward risk - seeking speculation, and no amount
of reason will dissuade them even when that speculation has already made a
collapse inevitable over a longer horizon.
President George W. Bush presided over the inflation
of a housing
bubble so big that its
collapse is still causing economic stagnation today.
Nationally, real spending on new multifamily construction showed a long - term upward trend prior to the
collapse of the housing
bubble, and it has rebounded strongly in the aftermath
of the
collapse, such that it is currently near its 2006 all - time high.
But some other critics have in a sense taken the other side
of this trade, contending that if anything the formula underestimates the potential liability
of long - dated options by failing to adequately account for so - called tail risk — the prospect that the markets will
collapse under the weight
of, say, a giant housing
bubble.
A further
collapse of China's economy and broader real estate
bubble will be even more devastating ahead for oil, gold, iron ore and copper.
The resulting deregulated and unregulated institutions have brought us one financial crises after another — the savings and loan scandal, the
bubble and bust in Real Estate Investment Trusts, the
collapse of the hedge fund, Long Term Capital Management, which threatened to set off a daisy chain
of bond defaults, and more.
Following the peak
of the housing
bubble in 2006 and the subsequent market
collapse, U.S. home prices declined for six years.
The response
of the U.S. government to the
collapse of our own property
bubble is largely the same as the path trodden by Japan.
«So now, the raising
of interest rates to prop up the
collapsing US dollar and to forestall runaway inflation is also destroying the housing
bubble and consumer spending.»
Once the inflow
of new employee contributions slows, the rise in stock prices will
collapse, just as the mortgage
bubble collapsed.
And everyone acknowledges that it was the sharp mid-decade run - up in interest rates that burst the
bubble and caused the
collapse in US housing prices and in the value
of those mortgage - backed securities that are still wreaking havoc on bank balance sheets all around the world.
Through the recurrent
bubbles and
collapses of recent decades, I've often discussed what I call the Iron Law
of Finance: Every long - term security is nothing more than a claim on some expected future stream
of cash that will be delivered into the hands
of investors over time.
Japan's infamous «Lost Decade» was supposed to refer to the stagnant economic period from 1991 until 2000, after the
collapse of the asset price
bubble in Japanese housing and stocks.
The biggest
bubble in the world right now is the Shanghai Stock Exchange; when that bursts, it is going to be one
of the biggest
collapses in the world.
A stock market crash can be a side effect
of major catastrophic events, economic crisis or the
collapse of a long - term speculative
bubble.
After a market slide
of more than 50 %, investors again pushed the Shiller multiple beyond 24 during the housing
bubble and cash - out financing free - for - all that ended in the recent mortgage
collapse.
The actions
of the banks along with a nationwide real estate
bubble created a perfect storm scenario which lead to a financial
collapse on Wall Street and Main Street.
After topping 6000 in August 2007 on the hype and hope
of voracious consumer demand during the subprime debt
bubble, the Chinese Shanghai Composite Index
collapsed 74 % to 1585 by October 2008.
In her latest piece «Low Oil Prices: Sign
of a Debt
Bubble Collapse, Leading to the End
of Oil Supply?»
It's one
of a variety
of such syndromes we track, and I've simply labeled it «
Bubble,» because with a single exception, this extreme variant has only emerged just before the worst market
collapses in the past century.
The bankruptcy was a turning point in the 2008 crisis, which was precipitated by the
collapse of the housing
bubble.
DollarCollapse.com is managed by John Rubino, co-author, with GoldMoney's James Turk,
of The Money
Bubble (DollarCollapse Press, 2014) and The
Collapse of the Dollar and How to Profit From It (Doubleday, 2007), and author
of Clean Money: Picking Winners in the Green - Tech Boom (Wiley, 2008), How to Profit from the Coming Real Estate Bust (Rodale, 2003) and Main Street, Not Wall Street (Morrow, 1998).
Every Fed tightening cycle eventually exposes and leads to the
collapse of the
bubbles de jure.
Mr. Rappaport's views on housing
bubbles are reminiscent
of Ben Bernanke's clueless remarks prior to the 2008
collapse.
In 2006, before the last housing
collapse, Trump stated: «I sort
of hope that happens [the housing
bubble bursts] because then people like me would go in and buy.»
The
collapse of major
bubbles is often preceded by the
collapse of smaller
bubbles representing «fringe» speculations.
It seems like great news to me in an anxious age, when we live in fear
of economic
collapse or terrorist attack, and are just waiting for the housing
bubble to pop or for oil production to peak.
Mixing
of batter creates air
bubbles in your batter that results in fluffy cupcakes but if you over-mixed your batter, those
bubbles will
collapse leading to a dense textured cupcakes.