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Does "The Big Short" Fall Short? Part 1
Don't get me wrong, I liked it.  I mean, it had comedy, profanity and a bathing beauty in a bubble bath explaining (sort of) the subprime mortgage market.  I like absurdity as much as the next person so what's not to like?  And, as a movie taken solely as a depiction of the mania, stupidity and arrogance that was rampant on Wall Street at the time, it's great!
However, if it's taken as a complete explanation of what really happened to cause that mania (the stupidity and arrogance just came naturally, I'm sure.) it falls far short. 
You're probably saying to yourself, "who cares if "The Big Short" is a huge oversimplification?  It's a movie."
Well, unfortunately, it seems to  me that it is being pushed as far more than a movie.  It's really being pushed as a true and complete representation of the underlying causes of "the crash".  And, if we accept this gross oversimplification as the full story, any decisions we make about how to prevent something like this happening again, are bound to be flawed.
So what did "The Big Short" oversimplify (or leave out entirely)?
Let's start with poor Lou Ranieri and Mortgage Backed Securities.  Mortgage Backed Securities had been around for ... more

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