Question

What major economic and financial system issues are discussed in the film «The Big Short».

Answer 1

The big short is a representation of the great economic recession of 2008 and the financial issues which has been discussed under the big short are as follows-

A. how the various financial intermediaries were working in Nexus in order to inflate the value of assets in the economy.

B. It also reflected the malpractices which has been followed by top level management while window dressing of the books of accounts.

C. it also reflected that how the Euphoria drives the market and asset prices are irrationally priced sometimes.

D. It also so focused upon the The incapability of the central bank in order to deal with these events in advance.

E.it also reflected the financial contagion in the economy due to collapse of one major financial institution

F. It also reflected that the overall prices can be manipulated by various financial intermediaries if there is not a proper regulatory mechanism in the place.