I never created a release schedule for this blog because I know I’m not going to stick to that but the plan was to stick to recommending movies on Fridays only but reddit bros had a different plan. Unfortunately, my reaction to that different plan was slow so instead of rolling out the RomCom recommendations preemptive of February this first lot are finance films.
If you haven't been paying attention, Redditors have been really giving it to hedge funds this week. These big, established, highly tech driven hedge funds have massive shorts on supposedly downward spiralling companies (Nokia $NOK, Gamespot $GME, AMC Theatres $AMC). Redditors caught wind of these massive shorts and decided that they would begin to purchase GME, NOK and AMC stocks to drive up the price. That decision has turned these once rock solid short bets into the fever dream of an unlucky gambling addict. As a result, some billion dollar hedge funds might just crash and burn – how lovely.
Look if you don't understand all that it’s okay that is only a really rough outline of what is happening and this whole thing actually started about a year ago but I'm not going explain it yet because I want to write a longer and better researched article about it at a later stage. For now, just know the bottom line is that the little guys are pulling one over on the big guys, using big guy tactics.
That being said for easily digestible information on how stock markets work here is a video by my all time favourite short documentary maker, Vox Media. It’s 17 minutes of decent filmmaking, simple language and reasonable analogies.
Now for what really compelled me to write this, 3 films you can watch that will provide some insight into why anyone would be willing to buy stock just to screw over the system.
1. The Big Short (2015)
One of my favourite films. Adam McKay’s brand of dark humour is the perfect delivery system for this biopic about the train wreck that was the 2008 US housing market crash. In this one some of the hedge fund managers are actually the ‘good guys’ and their short is a play of wisdom. Don’t worry about being out of your depths with this one, it is probably the most entertaining, educational narrative film I’ve ever watched.
From this you’ll learn:
· What a short is (and a bunch of other finance jargon)
· How it's possible that such a sophisticated system crumbles due to the presence of a few greedy institutions
· How institutions get away with this sh*t
I think that if we took to covering the giant mess ups of modern history in films like this more often we would all be a lot more knowledgeable on the failings of our systems. Maybe we would feel more compelled to actually make it all change.
2. The Wolf of Wall Street (2013)
Masterfully made by made by the legend Scorsese himself, this is another biopic and this time about the kind of guy those Hedge fund managers in the Big Short would’ve hated.
This is a raunchy, loud, excessive and fun film - maybe too fun. It’s the misreading of films like this that end up inadvertently encouraging this kind of behaviour. We could have a whole debate about whether this shed light on or made light of Jordan Belfort and his ‘shenanigans’. The point is that what was meant to be a cautionary tale, became every finance bro’s wet dream - hence our problem.
From this you’ll learn:
· How the culture of money above all is groomed
· How a lack of accountability is entrench in these systems
· Why a finance bro, shouldn’t be your bro
3. Margin Call (2011)
Slow and dialogue heavy, this entry doesn’t have nearly as much action as the above two films but just as much happens. If you’re fan of shows like Succession and Suits this might suit you, then again you might not see it as such a success because it does lack the same dramatic flair. That being said even without the humour and action this is gripping watch right through. This is a deeper look into the psychology and culture of the culprits of the 2008 recession.
I don’t really have any reference for this, but I imagine that this is a much closer look at what they were really thinking at the time. The film as a whole feels more grounded and focused on taking us through the decision making processes that occur when these big companies decide to gamify the system to bail themselves out. Our x-ray machine into the inner workings of these billion dollar Hedge funds right now, who are performing Short ladders as I'm writing this to try screw over the masses.
What you’ll learn:
· How much they really don’t care about the masses
· How far they’re willing to go to save themselves
· Why I and thousands of Redditors hope they really – and I mean really – get their come uppance with this little revolution.
Enjoy the films, do some reading, let me know what you think, and stay blessed.
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