I watched the Big Short yesterday. It was a very depressing show.
I got depressed watching it.
I lived through it in Singapore. I didn't really see what was really happening in the US.
There was blatant fraud.
Bankers basically cheated people.
They priced the CDOs/ABS as though as they were not going to fail.
And yet they priced the CDS/STS as though as they were going to fail.
In the end, banks got bailed out. Taxpayers got to pay the bill, the normal people got screwed, lost their jobs, lost their homes.
Bankers got huge payout and fat bonuses.
Life went back to normal.
They patted their own backs like it was a job well done.
I doubt anyone felt sorry for it.
The banking elites went back to work and life goes on.
Did anyone learn anything from it?
I don't think so.
Capital is like water.
It naturally flows to the easiest place to make money. Like water flows downwards.
Eventually, it will flood. Then the water will be removed and reallocated.
The bubble will burst and we will move on the fuel the next bubble.
So where is the next bubble? Cos it sure as hell is growing... wherever it is...
Anyway, if you haven't watched the show, please watch it. It is very entertaining, highly factual and educational.