Five lessons to learn from The Big Short (film)

[yetanotherquant]

As an exception, a post in my blog in "liberal arts" (rather than quantitative) style.

Five lessons to learn from The Big Short (film).

By the way, I expect (sooner or later) a Medium Short in Germany.
Medium, because (contrary to US) giving your house back to a bank does not make you debt-free.
Thus the falling prices will not trigger a foreclose chain reaction buy credible debtors.

 

[Daniel Duffy]

As an exception, a post in my blog in "liberal arts" (rather than quantitative) style.

It doesn't make you a bad person.

Many decision makers are liberal arts graduates, so if you can talk about Joyce, Ibsen and Chekhov you will make a killing.

 

[IntoDarkness]

giving your house back to the bank never makes you debt free in us when you are already underwater

 

[yetanotherquant]

giving your house back to the bank never makes you debt free in us when you are already underwater

I meant of course not completely debt-free, but debt-free in the sense of the mortgage in question.

In Germany if one goes to Zwangsversteigerung (forced foreclose) and his house is sold for, say, €100K, whereas his Restschuld (remaining debt) is €150K, his debt will finally be €50K.