Some big spoilers on the way for the new film The Big Short – perhaps the biggest is that the 2008 housing crash and ensuing financial crisis happened and, as Ryan Reynold’s character reminds us at the end of the movie, it was immigrants, poor people and teachers who were blamed for it rather than bankers, regulators and hedge fund managers.
The Big Short is another film about bankers. Following closely on the heels of The Wolf Of Wall Street this film doesn’t set out to glorify the world of finance instead it explains why the financial crash happened. And it did this brilliantly. Some of the best bits came when the camera suddenly panned to a random celebrity who explained some complex financial instrument using a simple metaphor. Mila Kunis placing a bet at a poker table was used nicely to explain that the housing market was basically a series of increasingly risky bets placed on whether people would be able to pay off their mortgages (yup, bankers will find a way of making money from anything). Of course, given that the housing market was fraudulently and corruptly regulated and so many people who couldn’t afford to were being sold houses, it was only a matter of time till it collapsed. And this resulted in a simultaneous financial crash because so many ‘crafty’ bankers had been betting on the aphorism “safe as houses” remaining true. Turns out houses weren’t that safe at all.
The Big Short is about the men in the middle of it all – the few men who bothered to do their research and uncovered a system of corruption, fraud, greed and stupidity. And what did they do then? They bet against the housing market – they hoped that houses wouldn’t prove safe – and they made a lot of money. Of course, housing crises have more than financial repercussions – evictions, homelessness, unemployment, debt, social unrest, poverty and suicide are just some of the consequences. The film mentioned these things in passing but was more interested in telling a story of a bunch of wealthy, predominantly white, male hedge fund managers (another word for banker really). They even try to paint these men as morally superior because so many of them were shocked at how corrupt the system was, the system that they made lots of money from when it collapsed.
Yup, the film tried to make heroes out of hedge fund managers – people who get rich and get their clients rich by making money from money, by betting on the market. People who are rich enough themselves that they don’t need to worry about the implications of a housing crash. But they do, as do we all. Because after the crash governments around the world used public money to bail out the banks and didn’t do much to regulate them. So we can be expecting another housing crash anytime soon. And it’s not just houses at stake it’s the whole of society too – as public services are cut, as immigrants are scapegoated, as poverty and unrest rises, as extreme right-wing groups like the Neo-Nazis return, so darker days are coming. Remember what happened a decade after the huge financial crash of 1929…World War 2. I don’t know if we’re due another huge war but I do know that The Big Short barely scratched the surface of the issue. It explained the financial crisis very well but it could have done this in half an hour, but, like so many films today, it chose to focus on the actions and faces of white men with the occasional shot of a topless woman. It is a shame to realise that so many uninspiring, greedy and fairly stupid men were involved in bringing the world’s economy to its knees but do we really need another film about them?