THE BIG SHORT (2015)

December 24, 2015

big short Greetings again from the darkness. Since there are so few subjects more hilarious than the 2008 financial crisis, let’s get the writer/director of Anchorman and Step Brothers to adapt the Michael Lewis best-selling book. OK, so it’s improbable that was the thought process, but kudos to whomever was responsible for bringing Adam McKay to the project. Before you go assuming it’s a poor fit, it should be noted that McKay is also one of the creative minds behind “Funny or Die”, a site filled with political and social satire. It’s that satirical approach that makes this explanation of what went wrong so accessible to the masses. Make no mistake … this is entertaining and educational and thought-provoking and nauseating and infuriating and funny and disheartening.

If the film were described as a tutorial on MBS (Mortgage-backed Securities), CDO (Collateralized Debt Obligations), Credit Default Swaps, Tranches, Bond Ratings, and Sub-Prime ARMs, most people’s eyes would glaze over and they would keep skimming for showtimes of other new movie releases. In truth, it is those things – and so much more. This is the story of how the housing market collapsed leading the government to the massive bailout that saved some of our largest financial institutions … and how a small group of people recognized what was happening and literally bet against the U.S. economy. It follows the bread crumbs to re-assemble the slow process of spotting the fault in the analysis that lead to massive corruption that finally crossed over into systematic fraud … and does so by using creative presentation approaches like a Bond Rating game of Jenga, and celebrity snippets for definitions and examples.

Ryan Gosling stars as Jared Vennett (based on Greg Lippmann), a slick Deutsche Bank trader who acts as our guide through the muck of shorting securitized mortgages, while simultaneously working the system for his personal benefit. He works with Mark Baum (a character based on Steve Eisman, played by Steve Carell) who manages FrontPoint Partners, and Baum’s team played by Rafe Spall, Hamish Linklater and Jeremy Strong (whom you might remember as Lee Harvey Oswald in Parkland). While this is going on, there are two other similar story lines we are following. The first is Christian Bale playing hedge fund manager and savant analyst Dr. Michael Burry at Scion Hedge Fund. Burry is often cited as the first to recognize the impending collapse and invest against the market. Finally, we have the “garage band” investment company based on Cornwall Capital run by (names changed) Jamie Shipley (Finn Wittrock) and Charlie Gellar (John Magaro) with a big boost from former trader Ben Rickert (played by Brad Pitt in a role based on Ben Hockett). The stellar cast is rounded out by Marisa Tomei as Baum’s concerned wife, Tracy Letts as the head of Scion, Max Greenfield and Billy Magnussen who play cocky and clueless subprime mortgage brokers, and Melissa Leo who plays a Standard & Poor’s employee.

It’s difficult to tell this story without casting blame, and few escape the wrath of Lewis, McKay and co-writer Charles Randolph. Those absorbing shots to the bow include: the Federal Reserve, the SEC, Rating Agencies, big Banks and Investment firms, Fund Managers, Traders, Realtors, and Mortgage Brokers. Companies specifically named include JP Morgan Chase, Bank of America, Deutsche Bank, Barclays, Merrill Lynch, Goldman Sachs, WAMU, Option One, Lehman Brothers, Bear Stearns, and The Wall Street Journal. The point made is that the problem goes/went beyond greed, and is/was truly system-wide, with each segment protecting themselves and their turf. Somehow the name Barney Frank is not mentioned, and FNMA and FHLMC escape mostly unscathed, while CRA lending requirements are not discussed.  It’s not politically correct (and not mentioned here) to question why so many borrowers who couldn’t pay their rent regularly accepted loans that they knowingly couldn’t afford to repay. But that’s a topic for another time.

With full disclosure, I will admit to having been in the mortgage business for 18 years. Though I was never involved with subprime loans, I will always disagree with the stance that the industry and institutions were not aware of the risk and impending collapse. It was common knowledge that “no doc” loans were absurd, and the adjustable rate schedules and prepayment penalties for subprime (and some conventional) loans were beyond impractical and more like homicidal (from a lending perspective). In the film, Baum interviews an exotic dancer who owns multiple homes … all loans made with minimal documentation due to the cash basis of her business. The terms of the loans set her, and other similar borrowers, up for financial ruin … right along with the housing sector and economy. The subprime mortgage brokers portrayed by Max Greenfield and Billy Magnussen may seem cartoonish, but Baum’s confusion with their “confession” versus “bragging” is spot on. There were many just like these two clowns who considered themselves “rock stars”, when in fact, there were really “bartenders who now own a boat”.  These weren’t the type to question whether the loans made sense … only how many could they close to pad their 5 and 6 figure per month income levels.  Of course, in defense of these morons, it was the banks and lenders who designed the loan programs to “feed the machine” with more and by necessity, higher risk loans … to the point where it was no longer possible to spread the risk wide enough for protection. Hence, the collapse.

By the end of the movie, you should expect to have a headache and feel quite cynical towards the system. Despite the humor interjected by quick-hit segments from Margot Robbie, Selena Gomez and Anthony Bourdoin, the seriousness of the topics is more than bubble baths, blackjack and fish stew. The film leaves us angry and nauseous from what happened in 2008, but more importantly questioning … Has anything changed? Have we learned anything? These answers are likely to cause a more sickening reaction than looking back seven years.

A recommended Economic Movie Marathon would include: Inside Job (2010 documentary from Charles Ferguson), Margin Call (2011, JC Chandor), The Big Short (2015, Adam McKay), and 99 Homes (2015, Ramin Bahrani)

watch the trailer:

 

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12 YEARS A SLAVE (2013)

October 27, 2013

slave1 Greetings again from the darkness. Should this be labeled a historical drama? Is it one man’s extraordinary tale of strength and survival? Does this fall into the “art film” category that so divides the movie-going public? The answer to all is YES, and I would add that it’s a masterfully crafted film with exquisite story telling, stunning photography and top notch acting throughout.

The movie is based on the real life and writings of Solomon Northrup, a free man who was kidnapped and sold into slavery from 1841-53. Northrup’s story provides us a look inside the despicable institution of slavery. Needless to say, it’s a painful and sad process made even more emotional by the work of director Steve McQueen (Hunger, Shame). McQueen takes a very direct approach. Not much is left to the imagination. Torture, abuse, cruelty and misery take up the slave2full screen. The only subtlety comes from the terrific work of Chiwetel Ejiofor as Northrup. His facial expressions and eyes are more powerful and telling than any lines of dialogue could be.

You will not find many details from the movie here. This is one to experience for yourself. It lacks the typical Hollywood agenda when it comes to American history. Instead this era is presented through the eyes of a single wronged man and his quest to return to his wife and kids, no matter the inhumane obstacles. We see Paul Giamatti as an emotionless, all-business slave trader. Benedict Cumberbatch is a plantation owner who has a heart, but lacks business savvy. And finally we enter the world of cotton farmer Michael Fassbender, who twists Bible scripture into threats directed at the slaves – his “property”.

slave3 Fassbender dives deep into evil to find his character, and along with Ejiofor, Sarah Paulsen (who plays Fassbender’s icy wife), and Lupita Nyong’o (who plays slave Patsey, the center of the two most incredible scenes in the film), provide more Oscar worthy performances than any one movie can expect. You will also note Quvenzhane Wallis (as Northrup’s daughter) and Dwight Henry (as a slave) in their first appearances since Beasts of the Southern Wild. Other strong support comes from Scoot McNairy, Taran Killam (SNL), Michael K Williams, Alfre Woodward, a nasty Paul Dano, Garret Dillahunt and Adepero Oduye.

Steven Spielberg gave us a taste of the holocaust with Schindler’s List, but not since the TV mini-series “Roots” has any project come so close to examining the realities of slavery. Northrup’s story seems to be from a different universe than the slave4charming slaves of Gone with the Wind. I would argue that what makes this watchable (though very difficult) is the focus on Northrup’s story. While tragic, his ending actually deflects from the ongoing plight of those not so fortunate. It’s a story of a man who states he doesn’t wish to merely survive, he wants to live a life worth living.

McQueen’s direction will certainly be front and center come awards season, as will many of the actors, John Ridley (the screenwriter), Sean Bobbitt (cinematographer) and Hans Zimmer (score). The only question is whether the subject matter is too tough for Oscar voters, who traditionally lean towards projects a bit more mainstream.

SEE THIS MOVIE IF: you want to see filmmaking and story-telling at the highest level and based on the true path of one man during one of America’s most despicable periods.

SKIP THIS MOVIE IF: slavery, complete with explicit scenes of turture and cruelty, is something you would rather read about than see depicted onscreen.

watch the trailer:

http://www.youtube.com/watch?v=vUQNjfhlREk