Business Ethics in the Big Short

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Business Ethics in the Big Short
The Big Short portrays businessmen as being morally corrupt as evident in the whole
financial industry. The government that had the legal mandate to regulate the financial industry
is also another corrupt body. The movie portrays the greed with many people and how they are
as well asleep in their job. Earlier before, banking was a very boring industry until Lewie Ranieri
established the mortgage-backed securities. Wall Street financial firms took several home
mortgages and grouped them in a single securities basket then sold to banks and investors. These
were more of safe investment because the homeowners strove through thick and thin to clear
their home loans. However, it was unethical for the mortgage bankers to lend money to
financially unstable people for buying houses. They therefore ended up putting more risky
mortgages in the securities basket while being given high ratings by the rating agencies yet the
US securities Exchange Commission never took caution of the looming crisis.
This was fraudulent of the Wall Street financial firms like Lehman Brothers and Bear
Steams. It shows greed in business in the real estate industry and mortgage bankers. They hastily
offered loans to individuals without assessing there payback capacity. The movie is riveting as
evident from Dr. Burry the hedge fund manager who was among the first people seeing the
collapse of housing bubble and credit. Mark Baum also suffered moral outrage when his brother
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committed suicide. He felt the urge to expose what actually happened with mortgage-backed
securities. Gomez goes gambling at Las Vegas and tells the audience that fans will bet that she
will either lose or win but those who placed the correct prediction were similar to the individuals
who predicted that the MBS would collapse. Another unethical instance is portrayed where
Anthony Bourdain, a prominent television host and chef stews for clients fish which has not been
sold for three days. The customers being unaware consume fish that is probably rotten. Bourdain
then asserts that that is exactly what happened with the risky Wall Street security mortgages.
Wall Street sold such risk securities to several banks claiming the securities were very fine.
Those who created the risky financial security crisis are instead bailed out with
taxpayers’ money instead of being punished. The media should not blind the masses by
portraying businesses as being positive and objective oriented when in real sense these are
negative businesses which are quite unethical and risky to invest in. It is the duty of the media to
provide facts as they are and not altering them to fit certain deceptive goals. The media kept
people in the dark and portrayed Wall Street as being financially fit only for investors to lose
their funds upon the collapse of these financial institutions.
In conclusion, it would be important that an investor conducts a thorough personal
research about a business before investing in it as opposed to relying on media information
because media may be given verywrong information.
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Work Cited
Lewis, Michael. The Big Short: Inside the Doomsday Machine (movie tie-in). WW Norton &
Company, 2015. Print.

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