Watch: Ryan Gosling explains the market collapse using Jenga

by Justin da Rosa11 Dec 2015
The Big Short, an upcoming movie based on Michael Lewis’ book of the same name, is a biographical look at the housing market collapse in the United States. And in one leaked teaser, the housing market collapse is explained using the Jenga.

 “What is that?” Mark Baum, played by Steve Carell, asks, as the Jenga blocks fall to the ground.
“That’s America’s housing market,” Jared Vennett, played by Ryan Gosling, replies.

Check out the clip below. The movie is scheduled for release today and it will draw millions – including originators past and present.



  • by Anonymous | 12/11/2015 2:40:31 PM

    This is one of the best books I've read in a long time. I read it on hardcover when it was first published. Michael Lewis's writing style is so engaging and entertaining that I honestly felt like it was playing out the way it would in a movie. While I was reading it, I kept telling my wife that I hoped they would make it into a movie. I was very happy to see that they did. What is amazing is that it is all true, and the book is told from the perspective of a handful of hedge fund managers who identified this opportunity to short the market through the use of derivatives, as well as a Wall Street trader who also identified it and began shorting his own bank's holdings! The banks were so confident that the market would continue going up that they had absolutely no idea how to price the derivatives so they were dirt cheap. By the time they figured it out and the market was collapsing, the derivatives prices were skyrocketing and the handful of guys who stuck with it and held on made hundreds and hundreds of millions.

    I really hope the movie goes into some of the details that Michael Lewis covers with regards to the ratings agencies and how they were literally teased and bullied (playground style) into fraudulently rating all of this garbage paper. When I write teased and bullied, literally reps from the agencies were teased and made fun of at various investment conventions and conferences around the country for being nerds and such. Then a few key members of a Wall Street firm would break from the pack, buddy up to them, and invite them to party with them at night, all to make those people feel comfortable. Liquor, girls, and anything it took to make them feel accepted and part of the fraternity. It was a coordinated effort at the ground level to play on individual agency employee emotions, and then the big bullying was applied up at the corporate level to hammer it home from the top down. The Wall Street firms equally applied pressure to the worker bees as well as the queen bee, so the entire rating agency hive was at their beck and call.

    I'm looking forward to seeing this on the big screen. If it captures even half of the essence from the book, it will be a thrilling ride!


Should CFPB have more supervision over credit agencies?