Reflection on “The Big Short”: Overconfidence, Greed, and the 2008 Crisis
Words: 736 Pages: 2 1701Overconfidence and the Housing Crash The financial downfall in 2008 is depicted in the book and movie The Big Short, which tells how a group of traders foresaw the housing crash before anyone else. Their predictions made them pocket hundreds of millions while Wall Street associations collapsed. Michael Burry, a hedge fund manager at Scion Capital, recognized that the U.S. housing market was virtually an asset bubble inflated by high-risk loans; therefore, he created a credit default swap that would […]