playing in the killing fields
by
Douglas Messerli
Adam
McKay and Charles Randolph (screenplay, based on the book by Michael Lewis),
Adam McKay (director) The Big Short / 2015
The
so-called “heroes” of Adam McKay’s The Big Short, are not so very
different from the film’s villains: all desire just one thing, a big profit in
the markets—a “killing” as it is often and perhaps correctly described, since
it often means the destruction of so many other’s lives.
The only difference, in this case, is that
Dr. Michael Burry (Christian Bale), who works as the head of a hedge fund from
Scion Capital, who realizes that the usually safe housing market, rated AAA in
quality since most people pay their mortgages before paying other bills, is
about to bust. We remember how, in the latter years of this century’s first
decade, bankers and organizations such as Fannie Mae provided mortgages to
millions of individuals who would never be able to earn enough to pay for them,
which combined with a fall in stocks and other commodities nearly destroyed by
the US economy (you can get a crash course on these issues from Ramin Bahrani’s
film 2014 film 99 Homes and J. C. Chandor’s 2011 film Margin Call).
Burry, suffering from Aspberger’s Syndrome and sporting one artificial eye, saw
it all coming.
Since the book on which this film is based
used real figures to tell its story, I will recount it as a series of historical
facts, even though the character names have been changed.
Visiting numerous banks—who maintained
their faith, against serious bad signs, that the housing market was secure—Burry
bet against the housing market, buying up credit defaults. Although his
clients, realizing how he had invested their money, soon begin threatening him about
leaving his fund, Burry bravely declare a moratorium on withdrawals, and
soldiered forward, ultimately winning 489% profits for his investors.
Somewhat coincidentally, Deutsche Bank
trader Jared Vennett (Ryan Gosling), hearing of Burry’s actions, checked the
figures, only to discover that Burry was right, and determined to put his own
money into the credit default swap market, even though many such credits were
secured by his own bank.
By
accident, Mark Baum (Steve Carell), head of a smaller hedge fund (FrontPoint
Capital), got wind of Vennett’s actions, and soon after was approached by
Vennett to join him in the investment.
The two, along with Baum’s partners discerned
that the impending market collapse was being further perpetuated by the sale of
collateralized debt obligations (CDOs), groups of poor loans that were packaged
together and given AAA ratings due to the conflicts of self-interest and
dishonesty of the system.
When
Baum attends the American Securitization Forum in Las Vegas, he interviewed a
businessman who has created synthetic CDO’s, making what he describes as a
chain of increasingly large bets on the faulty loans; Baum realized, much to
his horror, that the scale of the fraud will cause a complete collapse of the
economy.
These two and Baum’s assistants, Hamish
Linklater, Rafe Spall, Jeremy Strong and Adepero Oduye, further discover that
the housing market was in even more trouble than Burry might have suspected,
given the fact that the poor loans are often packaged together and given AAA
ratings due to the bank cover-ups and the outright dishonesty of rating agencies
such as Standard and Poors.
At the Forum meeting in Las Vegas, Baum
interviewed a wealthy businessman, who explained that he has created synthetic
CDO’s, which he describes as a chain of large bets of faulty loans, leading
Baum and his associates to perceive that the fraud would likely cause a
complete collapse of the economy. Baum, one of the strongest voices of morality
in this film, hesitated before betting against the American economy, but was
convinced by his partners to join in with Vennett. Baum is the last to collect
on his winnings.
Finally, a group of eager younger
investors, led by Charlie Geller (John Magaro) and Jaime Shipley (Finn Wittrock),
who because of low capital, were not even able to trade in this market,
discovered Vennett’s scheme, and decided for themselves, after interviewing
several real estate agents in Miami, to also get involved in the default swaps.
They called in a retired banker, Ben Rickert (Brad Pitt) to help them with the
investment. Eager and excited to finally be able to enter into high stake
trading, they were absolutely delighted when Rickert agreed to help, but he
(the most serious moral force in this work) upbraided them, reminding them that
their success would mean the destruction of thousands of US families and
perhaps a crisis that would utterly destroy America’s economy.
Still innocents, they attempt to alert the
press, friends, and family members about the impending disaster, but are mocked
for their efforts. One of the most devasting moments in this moving film is
after having made their “killing” in the market, they wander into the offices
of the new destroyed and emptied Lehman Brothers offices, their confidence in
the system now totally destroyed.
The wonderful thing about The Big Short
is its recounting of these various men’s actions and the ensemble acting upon
which it centers, each tangentially connected, coming together, without direct
contact, only at the Las Vegas convention. Nearly every actor in this film is perfect
in his or her role.
The often seeming inexplicable vagaries of
investment activities and its terminology are explained, in a more comic vein than
the rest of the story with theatrical flair, through interruptive lectures by
celebrities such as food author Anthony Bourdain, along with Margot Robbie, Selena
Gomez, and Richard Thaler.
Ultimately, it is the giddy sense of greed
combined with the realization of the economy’s impeding doom, and the tragedy
it brings to so many millions of Americans that makes McKay’s serious drama so
engaging. Even as we learn how the banks, loan organizations, and even those
designated to oversee them are in cahoots, working against the average American
citizen, we recognize that both the true cynics and the more likeable
pragmatists of this tale are not so very different in their determination to
capture their piece of what used to be called the American Dream, which might
now better be described as the American Nightmare.
In real life, most of the “winners” in
this story, retired in disgust from the economic section and attempted to use
their ill-gotten monies for better causes. But, of course, they could afford
to, while so many other American citizens are still suffering from the loss of
jobs and income in the unnecessary collapse.
Los
Angeles, February 2, 2016
Reprinted
from World Cinema Review (February 2016).
