“The Big Short” Writer On Why The Bank Bailout Was A Mistake


>>Stephen: CHRISTIAN BALE,
WHAT IS HIS CHARACTER.>>DR. MICHAEL BERRY.>>Stephen: AND HE GOES INTO
GOLD MOON SAX OR ONE OF THESE BIG INVESTMENT BANKS AND SAYS
WILL YOU SELL ME SOMETHING CALLED A SUBPRIME MORTGAGE
CREDIT DEFAULT SWAP.>>HE IS BUYING INSURANCE ON THE
BOND. SO IT’S LIKE IF I THINK YOUR
HOUSE IS GOING TO BURN DOWN AND I WANT TO BET ON IT, I COULD BUY
INSURANCE ON YOUR HOUSE.>>Stephen: ARE YOU BETTING MY
HOUSE WOULD BURN DOWN.>>THAT IS KIND OF WHAT HE IS
SAYING. HE SAYS I THINK YOUR HOUSE WILL
BURN DOWN AND I WANT TO BUY INSURANCE ON IT. SELLS ME THE INSURANCE. I DON’T OWN THE HOUSE.>>Stephen: AREN’T YOU, HAVE
AN INCENTIVE TO BECOME AN ARSONIST.>>YES, YOU DO.>>Stephen: PEOPLE DID LOSE
THEIR HOMES BUT THE BANKS DID NOT GO OUT OF BUSINESS BECAUSE
WE BAILED THEM OUT AND DID NOT BREAK THEM UP.>>TRUE.>>Stephen: WAS THAT A BAD
IDEA?>>YES, YES.>>Stephen: WHY, BECAUSE I HAD
BERNANKE ON THE SHOW. I HAVE HAD IN THAT CHAIR, I HAVE
HAD HILLARY CLINTON, BEN BERNANKE. HE SAID YOU HAD TO SAVE THEM,
NOTHING TO DO THE WHOLE HOUSE COME A TUNLING DOWN IF YOU
DIDN’T. HILTRY CLINTON SAID IT WAS A
MISTAKE. NEXT TIME WE CAN’T BAIL THEM OUT
AND HAVE TO BREAK THEM UP.>>WHAT THEY FAILED TO
APPRECIATE, WHEN THEY RESUSCITATED THESE PLACES AND
LET THEM STAY IN BUSINESS, THAT THEY WOULD PROCEED THEN TO NOT
ONLY GET BIGGER, EVEN BIGGER, THAT’S THE AMAZING THING, BUT
ALSO TO START TO MET EL IN THE PROCESS TO REFORM THEM, AND TO
SORT OF LIKE THROW THEIR POLITICAL THOUGHT INTO
PREVENTING ANY KIND OF CHANGE. SO MISREADING THE POLITICAL
CONSEQUENCES OF LETTING THEM SURVIVE. SO IT WOULD HAVE MADE– IT WOULD
HAVE BEEN MUCH EASIER TO REFORM IF THE BANKS WEREN’T THERE
PAYING LOBBYISTS, PAYING POLITICIANS TO STOP IT FROM
HAPPENING.>>Stephen: IS THERE SOMETHING
RIGHT NOW, I MEAN THERE MUST BE SOMETHING RIGHT NOW THAT IA A
HANDFUL OF PEOPLE ARE SHORTING BUT THE REST OF US JUST HAVE NO
IDEA ABOUT THAT IS JUST WAITING OUT THERE LIKE A SPIDER TO CATCH
US.>>I’M JUST A WRITER. I AM NOT– .>>Stephen: WELL, YOU USED TO
DO THIS, YOU USED TO DO THIS.>>BUT I SUCKED AT IT.>>Stephen: DID YOU SELL BAD
BONDS?>>THAT’S PUTTING IT A LITTLE
TOO CRUDELY.>>Stephen: YES OR NO
QUESTION, SENATOR, YES OR NO QUESTION.>>YEAH, ABSOLUTELY. YOU ARE CONTINUE ALLLY PUT IN
THE POSITION OF HAVING TO SELL STUFF THE BANK WANTS TO UNLOAD. DO I ABSOLVE ME, CAN I GO IN THE
CONFESSIONAL.>>Stephen: DO YOU FORGIVE
HIM?>>I’M SO SORRY. I’M HALF OF WHO I WAS BEFORE I
CAME.>>Stephen: DON’T GO ANYWHERE. YOU’RE STAYING RIGHT THERE. THE BIG SHORT OPENS IN NEW YORK
AND LOS ANGELES TOMORROW, AND NATIONWIDE DECEMBER 23rd. MICHAEL LEWIS, EVERYBODY. WE’LL BE RIGHT BACK.

100 thoughts on ““The Big Short” Writer On Why The Bank Bailout Was A Mistake

  1. Obama had the heads of all the big banks right where the American people (and the rest of the world) wanted them, and he gave them a slap on the wrist and a stern warning not to let it happen again. One of the biggest failures of his time in the Oval Office and a vivid demonstration of where the real power lies in America. They left the White House like a group of truant schoolboys who'd emerged unscathed from the principals office, beaming smiles on every single one of their avaricious faces. The rest of us will pay dearly for their next lapse of judgement.

  2. The whole conversation prologued up to that pen, falling, rolling and falling… The future's scaray.

  3. Does Stephen really believe Clinton wants to break up Wall Street? Wow. Just as stupid as the CDO managers portrayed in the film. Jesus, Michael even said it in plain English in this very interview "it would be much easier to reform the system if the banks weren't there paying lobbyists and politicians to stop it from happening".

  4. Why and who decided that the Govt. should back subprime bank loans … ??? an invitation to disaster… how could the greedy banks resist that ??

  5. For the record, his name is pronounced with a hard T. Colbert. Like Robert. He pronounces it the French way because he's pretentious.

  6. Anyone who did not vote for one of these below this year, 2016, is a total shithead who hates the USA
    & has no concept how reality works, has no concept of the magnitude of the inertia of injustice,
    inertia of laws, inertia of humans' selfish arrogant self-entitled institutions, FBI, courts, NSA, military,
    the inertia of humans' addiction to fossil fuels & the holocaust-meat industry, and thus the enormity
    of the terrible necessary reaction to destroy & annihilate that inertia.

    On the ballot in New Jersey in 2016:
    Gloria La Riva and Eugene Puryear, Socialism and Liberation Party, or
    Monica Moorehead and Lamont Lilly, Workers World Party, or
    Alyson Kennedy and Osborne Hart, Socialist Workers Party, or
    Dr Jill Stein and Ajamu Baraka, Green Party (my vote 2012 & 2008)

    Write-ins:
    Clifton Roberts, Humane Party
    Zoltan Istvan, Transhumanist Party (my vote 2016)
    Ralph Nader, Green Party (my vote 2004, 2000, 1996)

  7. I think they needed the bail out to save millions of peoples life savings but the second they were stabilised should have been nationalised or broken up

  8. What do lobbyist do? Idk what they do, but everytime someone talks about a big company and politics it always involves lobbyists.

  9. people are shocked at the banks not being punished. we are in a fraudulent system, its like they are in a prison with no locks on the doors and they follow the "honor system"

  10. Bailing out Wall Street was a mistake, but a necessary one. Without banking the US economy would've collapsed, banks close, ATMs empty out and soon there's no food in the stores.

    On the other foot, Wall Street is probably thinking " If we got away with it once, why not again? "

  11. Interesting number of people in these comments that all once felt the passion a year ago to post a youtube comment about "feeling the bern". I'm curious as to how many of you, when you were actually feeling the burn, actually voted come election day? How many sought out hypocrisy, I wonder.

  12. Fannie Mae and Freddie Mac have done horrible things with this last generation of college students. Knowing that… I wanted them to go away. BUT…. they may be the only reason why we have access to 30 year mortgages. If they were gone… we might go back to having access to only 15, 10, or 5 year loans. No one in the middle class would be able to afford a home anymore. So what do we do? If we get rid of them, could we replace them with something less corrupt? Less corruptible?

  13. The bank bailout was a stinker that had to be done. Without the bailout every bank on Wall street AND Main street would have collapsed. But Dodd Frank was supposed to prevent a crash from happening again but it was watered down by the GOP who were bribed by the banks to do so. And now the GOP wants to completely eliminate it. Think about it. Elections have consequences!

  14. Heу guуууys waaаatch Тhе Big Shоrt onlineеee hеreееe => https://twitter.com/c85c850274020bb3b/status/822754503808032773

  15. Stephen Colbert doesn't understand shit about what happened. The fact that he thinks Hillary would've broken the banks shows how much of an idiot he is.

  16. Republican Rule = Small Government, no rule and more fraud and eventually the system crashes

    Democrat Rule = More control, less cheating, less risk.

  17. Watсcch The Big Shоrt oooоnlineеee here => https://twitter.com/ebf277f813c32758f/status/822754503808032773

  18. The fed didn't use taxpayer's money to bail out AIG or Bear Stearns and american economic breakdown would have been incredibly severe if the fed didn't bail out AIG.

  19. Too many armchair quarter backs. The banks needed to be bailed out. Period. One does not want to find out what would have happened had they been allowed to fail. Class dismissed.

  20. The problem was commercial banks were involved in this- so just regular people would have lost all their money without investing a dime- that's why the bailout had to happen

  21. If they would have let the banks fail everyone would be screaming that they didn't do enough to prevent the 2nd great depression.

  22. Hillary did say it was a mistake. The problem is that her actions prove contrary to her words. She’s proven that she only said that to get votes (which didn’t work.) She’s one of the politicians who is OWNED BY THE BANKS.
    And the Clintons were the front-runners in dismantling Glass-Steagall in ‘99, which almost directly led to the stock market crash upon which Lewis’ book is based.

  23. i've seen this idiot on bloomberg too, he likes to babble too much, most of what he says is a crude misconstruction of what happened. Tons of people short everything all the time, and guess what? The vast majority of the time they lose, and lose big. Oh, but when some people win, let's talk about how corrupt the system is.

  24. Colbert "there must be something right now that a handful of people are shorting that the rest of us just have nobody about." Psst, I'll let you know what they are: the u.s. college/university industrial complex, and marriage. To anyone reading this you are either already in the know or need to mark these words.

  25. If there are a dozen parties culpable in 2008, ten of them are government. The Fed Reserve, SEC, Bush, Obama, congress, Freddie Mac, Fannie Mae, local gov pushing "affordable housing" quotas, local gov pushing land-use restrictions (artificial scarcity through restricted supply), etc.. Government created the house of cards, and when the whole thing blew up, they slowly backed up and pointed the fingers at Wall Street to take the blame.

  26. Great book by a talented guy. Really illustrates how corrupt Wall Street is. Lewis has been shedding light on that since Liars Poker.

  27. I was in a house they literally tried to burn down. But I was head of Damage Control and put the fite out myself. Just kidding. Right?

  28. Next is student loans. Forget the name of the Dr. They just mentioned, but he is already deep into this.

  29. And remember everyone, all the issues that allowed that to happen back in 2008 were never fixed. It can all, and most likely WILL, happen again only this time it will be ten times worse. Don't believe me? Just wait a bit. (How long is "a bit"? We're about to find out.")

  30. Michael Lewis is full of shit. He was a half assed trader for about a year and wrote a bunch of crap in his first book (Liar’s Poker) in order to sell it…and hasn’t stopped. He’s a charlatan.
    “ I’m a writer…!” No Michael…you’re just a liar.

  31. Bernie Sanders would have done the right thing. The supposed socialist.
    Clinton and Bernanke. The Capitalist didn't have a clue

  32. Always criticized Obama for bailing out this crook bankers and media was pretty much silent. No outrage whatsoever.

  33. I have to disagree here,
    You may or may not have a moral opinion on the state of the banks but
    1)I'm pretty sure if we didn't bail out the banks, not to mention the auto industry, the recession would be a lot worse. The industries bailed out are today highly profitable employers.
    2)Keep in mind that these bailouts were loans, not gifts almost all of which have been paid back in full with interest, barring a small number of bankruptcies etc, and that we've made money on them
    3)Even Steve Eisman, Mark Baum in his movie/book has said that he's satisfied that the new liquidity requirements and regulations on the banks will prevent 2008 from repeating

  34. Sure there are people shorting stocks.. Most are MSM companies.. As their revenue tanks. Tesla is one other the shorts are picking apart.. Hell I might even short oil stocks. If I knew the Federal Reserve was going to raise rates 1.5%…That would kill the banks using cheap money loaned from the Fed to drive oil stocks up, more expensive. I rather prefer President Trump make oil contracts at 35% margins. That would really knockout the speculators with an upper cut KO…

  35. Both parties supported it too. The GOP was gutted of those people by the tea party in 2010 but the Democrats are still run by the same people that ran this scam

  36. I was around my mid 20's when the economy nearly went belly up, I worked at a bank, to me it seemed like common sense to just let it all crumble and not let any bail out take place, the more experienced and seasoned private bankers and investment guys looked at me and laughed, my rationale wasn't so much that the big banks needed to break up, I had more faith in the ppl that the banks would crumble all on its own and it would've been prime opportunity for new ppl to rise and innovation would've created new financial institutions and more creative ways things would work. The crash would have been a nightmare, 10X worst than the depression, not by #'s but by sheer # of ppl being affected vs the depression since the population was nearly 10X bigger meaning the ppl affected in this crisis would've outnumbered the entire us population during the depression, this '08 crash, would have in fact been another depression and would have been far far worst, the politicians didn't want that on their clock, so they did everything in their power to avoid it, hence the bail out, banks were to some degree aware of this. The problem w/everything that happened is that these big banks weren't being negligent or dumb, they were being very careless and knew to some degree the gov't was incompetent enough that if they were scared enough they'd practically give a blank check to make the problem go away. That's what big bank did when they came to gov't, and when the dust somewhat settled, big banks made sure the status quo would not be affected.

    If the gov't just let the shit hit the fan, there's no denying the fallout would've been (In relative terms) apocalyptic, but 'til this day, I felt the recovery would've been that much quicker and stronger. If you have a diseased arm, are you going to chop it off cleanly to get it over with, or slap some neosporin hoping the inevitable will miraculously get better.

  37. The mistake was absolutely not bailing out the banks. If you didn't do that, the entire world economy would collapse, and the pain would have been felt by ordinary people. Make no mistake, it would have been bigger than the great depression.

    What should have happened is simply reinstating Glass Steagall – force banks to separate between commercial and private banking. Or, if you want, push for Frank Dodd as hard as possible. Break up the banks, reform the banks – sure. But don't think we had the luxury of just letting them fail. If you really think that only wall street CEOs and pompous bankers would have been affected, then ask yourself – why did anyone care when Lehmann collapsed?

  38. The Recession of 2019 is here and now. Will WE THE PEOPLE finally toss these psychopath oligarch bankers into prison? I very much hope so.

    Wake up people. Wake the f*ck up.

  39. Always amazes me in my own nation. Socialism is FINE for billionaires and corporations….tax cuts, subsidies, giveaways but OH NO…for Main Street America? F em right? This guy is 100% on point. Surprised Colbert let him talk.

  40. People shorted 9/11 an investment bank tied to CIA bought huge amounts of options betting against airline stock. Also thee guy that had the lease on the WTC insured the towers for terrorist attacks prior to 9/11 and made billions.

  41. Wow, is this guy spot on. Now under Trump, not only the banks are bigger, but he is also undoing all the regulations that were put in place to prevent another GFC. Also, his current Treasury officials are nowhere near as economically educated or savvy as those people in 2008.

  42. The fact you have to ask that question on why government shouldn’t save a private entity is both insanely unamerican and anti-capitalists.

  43. September 23,2019
    What`s going on here? Another flim flam game we don`t know about yet?
    Why the Repo Market Is Such a Big Deal—and Why Its $400 Billion Bailout Is So Unnerving
    "One of the most vital pieces of plumbing that powers the global financial system usually runs so smoothly that it gets overlooked by market watchers. It’s the “repo market,” comprising the short-term funding that banks and financial counter-parties regularly tap to lend each other trillions.

    It’s suddenly in the news again, and for all the wrong reasons. The repo market is looking a lot like it did on the precipice of the 2007 housing market crash.

    But what is the repo market, anyway, and why has the Federal Reserve Bank this week injected hundreds of billions of dollars into the financial system to stabilize it?"
    https://fortune.com/2019/09/23/repo-market-big-deal-400-billion-bailout-unnerving/

  44. Funny, people cheer when he said Yes, it was a mistake.
    They, like me, dont have a clear understanding of this shit. Thats all there is to it.

  45. Obongos first cabinet was literally hand picked by Citibank, the kenyan muslim was no friend to the working man, he was a wall street puppet from day one.

  46. All of this is just a circus. No one wants to face up to the horror that the whole US is in a giant crocodiles mouth. There is no actual drama on the top elite.. all of it is intentional preplanned.. all of it. The drama we see.. The drama just fuels the Pennywise clown spinning its head, screeching satanic slurs, and slurping melting faces.. that is the sociopathic core.

    Hate to leave these things without a what to do.. focus on nature ie gardening, community unity, and opening your heart. The pieces are coming together..

  47. Glass Steagal Act of 1933 prevented this until Bill Clinton repealed it in 1996, thus brought on the 2008 Financial crisis. Break up the Banks!!! Obama choose not to punish the banks and Wall Street because he went to school with most of them.

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