Financial Movies – Introduction
Watching a movie can help a person in many ways. Movies provide a good way for people to be entertained. They also play an important role in helping people learn new things. Movies can also help a person predict what will happen in future. There are thousands of movies for you to watch today. You can watch the movies by going to a movie hall, buying them online, or subscribing to online movie stores like Netflix or Amazon’s prime video. In this article, I will look at a number of financial movies and series that can help you understand a few things about investing.
#1 – Too Big to Fail
This movie was released in 2011. It is a movie based on the 2008 financial crisis. As you already know, in 2008, the world witnessed a major financial recession. This recession was caused by a number of factors. The main factor was large banks had taken into risky assets known as MBOs (Mortgage Backed Securities). Banks sold loans to people without doing any due diligence. They then took these loans and traded them with other institutions. These units were called Collateralized Debt Obligations (CDOs). When people failed to pay back the loans, large institutions like Bear Sterns and Lehman Brothers collapsed. Bear was saved by the Fed and bought at $2 per share by Bank of America. This led to a direct impact to the institutions that had insured the institutions. AIG was saved by the taxpayer. This movie tells the whole story and the behind the scenes negotiations that happened. Watching the movie will help you understand a few things about negotiations and the mistakes that happened in the crisis.
#2 – Billions
Billions is a series about a high-flying hedge fund manager and an attorney general who is focused on jailing him for inside trading. In the series, David Axelrod, a high-flying hedge fund manager has achieved a lot of success such that the attorney general believes that he is doing insider trading. Insider trading is when a trader uses information that other traders don’t have access to to make trades. It is an illegal act that can lead to prosecution. Watching this series will introduce you to the world of hedge funds and trading.
#3 – Inside Job
This is another movie/documentary about the 2008 financial crisis. The movie starts with Iceland and the financial mistakes that the country did. The country privatized the largest banks and the executives went to a spending spree. They bought private jets and all the luxurious things that money could afford. Years later, they were unable to pay the loans leading to a crisis. After this, the movie goes to the global financial crisis. The top leaders in the world of finance were interviewed for the documentary. They included people like George Soros, Bill Ackman, Christine Largarde, and Matt Dimon among others.
#4 – Margin Call
A risk management officer at a top-ranking hedge fund is unceremoniously fired. He had been working on a model he believes exposes the funds trades at risk of a margin call. He hands the flash drive with the unfinished model to his assistant who works on it to completion. The trades that the fund has open are so risky that they have a few more days to survive. The junior assistant talks to the senior managers about the trades and they are forced to hire the guy again for more than $140,000 per hour.
#5 – Wall Street: Money Don’t Sleep
This is another must-watch movie for anyone interested in trading and finance. The movie explores the life of a former successful hedge fund manager who finds himself in prison for insider trading. His relationship with his only daughter has been messed up. After his release, he befriends his daughter’s fiancé who is a master stock broker as he starts to build his new hedge fund.