“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.

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