The Big Short (2015) | How Wall Street Turned Debt Into “Wealth” 💀🏦

Added: 2026-06-03

[00:00:00]You smell that? What is that?

[00:00:01]>> A cologne?

[00:00:02]>> No.

[00:00:03]>> Opportunity?

[00:00:04]>> No. Money?

[00:00:05]>> Oh, >> okay.

[00:00:06]>> I smell money.

[00:00:08]>> Okay.

[00:00:08]>> This is your basic mortgage bond.

[00:00:10]>> All right. The originals were simple.

[00:00:13]They were just thousands of AAA mortgages bundled together, guaranteed by the US government. The modern ones are different. They're private and they're made up of layers of tanches.

[00:00:23]the highest level AAA's getting paid first, the lowest rated B's getting paid last, taking on defaults first. Now, obviously, if you're buying B's, you can make more money, but they're a little risky. Sometimes they fail. Somewhere along the line, these B's and double B's went from a little risky. The default rates are already up from 1 to 4%, fellas. And if they rise to 8%, and they will, a lot of these triple B's are going to zero, too. And that you're too