The Big Short and other movies about Wall Street are alluring to both the 99% and the 1% because whether in agreement or not, all are fascinated by Wall Street.  For this reason, LesterMoney would like to offer an analysis. Take the movie, The Big Short, for instance. This movie highlights how diluted property rights set the world on a collision course to the economic crash known as the “mortgage crisis”  How did this happen? Well, many are crediting Lewis Ranieri with coming up with mortgage-backed securities. Therefore, he was criticized when such securities mutated and caused an economic crisis.

LesterMoney believes in the tenets of the theory of diluted property rights; therefore, when the mortgage on someone’s home becomes the way the banks and investors financially gain, red flags go up.  According to the theory of diluted property rights, when the owner of a “property” can no longer benefit financially from being an owner, then rights are diluted and economic punishment is imminent. This punishment is never to one individual because most if not all are somehow connected to another.

Therefore, the Big Short is not just about a Lewis Ranieri foul, but about how money makes the greedy forget all bout theory.  Economic crisis is not because “no one is paying attention.”  It is because of the dilution of property rights.

Thank you for your attention.

In Simple English.