Sun. Oct 25th, 2020

By Donna Westfall – March 20, 2016 – It’s not often that you can watch a movie like The Big Short and not continue to think about it, discuss it, and research it on the internet for days.   No wonder it was nominated for an Oscar for Best Picture in 2016.

To simplify; no one thought the housing market would burst like a bubble in 2008 or did they?  In reality, there were several men that tried to bring the impending doom to light only to be laughed at and ridiculed.

In this film, Dr. Michael Burry, played by Christian Bale, founder of the Scion Capital LLC and hedge fund manager, analyzes the mortgages that are being bundled and sold off for huge profits. He was one of the first investors in the world to recognize and invest in the impending subprime mortgage crisis.

The character, Mark Baun, played by Steve Carrell in an uncharacteristic dramatic role fueled by anger, plays real life hedge fund manager, Steve Eisman who also saw the housing market collapse before it happened and made a bundle off of it.

The character of Jared Vinnett is based on real life Greg Lippmann, a former trader for Deutsche Bank who bet against subprime-mortgages before the market collapse, subsequently raking in billions. He’s played by Ryan Gosling in a wig.

Then there were characters, Charlie Geller and Jamie Shipley that in real life, are Charles Ledley and Jamie Mai  who started Cornwall Capital in a shed in Berkeley, California, and went on to make millions by making small bets against the housing market. They were able to transform a $15 million investment into $120 million by counting on the failure of subprime mortgages.

Most disappointing to this day is that no one was held accountable although rules and regulations were tightened up and changed afterwards.  Sure, many of the investment bankers and lenders went out of business.  But who went to jail while 8 million people were out of jobs and 6 million lost their homes. Even Alan Greenspan, former head of the Federal Reserve has never said, “I’m sorry.”  It was his job to regulate and know about all the fraud, illegality and stupidity. Instead, he took his huge salary, wrote a book and retired.

It reminds me of the suspected fraud going on between municipalities and the Water Quality Control Districts. How can an unelected board make decisions like granting a $43.8 million loan to a town the size of Crescent City to expand and upgrade their wastewater treatment plant (WWTP) and not know how the loan would be repaid.  Huge red flag!

How can Grand Jury after Grand Jury not investigate thoroughly into the allegations of graft, fraud and corruption on the WWTP? Another huge red flag?

How can the City of Crescent City get away with destroying records, documents and video’s of meetings regarding the WWTP and not be held accountable? Another huge red flag!

Is Crescent City the only municipality suffering under the burden of this huge debt, or is this scenario being repeated in other cities?

Certainly not the world wide magnitude of the ’08 real estate crisis.  But a crisis nevertheless.

So far, no one in this town will do anything about it.

When will the authorities outside our area pay attention? When the City declares bankruptcy?

 

 

 

 

 

One thought on “The Big Short”
  1. Do you remember when the job of the authorities was to oversee their areas, keeping them free of crime and corruption?
    Do you think maybe the authorities job description has changed and they are the organizers of crime and corruption?
    Check it out by department. Start with the sheriffs’ department. See any corruption there?
    How about Public Health? Is that the department where the dude lives in Santa Barbara and runs this joint. 4 of 5 Supervisors came unglued at the thought of having to change the director of that department??? Mr. Gitlin and the rest of the public could not understand how the director of a community department could live in another community hundreds of miles away. There were several local Drs. who wanted the job.
    Then there was the big stink at the dump department, known as Solid Waste. Once again Martha McClure rides into town, this time on a dump truck, to save us from Roger Gitlin and his voluntary clean-up committees. Didn’t Roger have someone thrown in jail because his grocery carts were not lined up in a row. And Martha had Roger removed from Solid Waste…. I’m sorry, I got that confused with David Egan being thrown in jail for three days, without being charged with a crime, so the sheriffs department could steal his beloved grandfather’s prized gun collection, coin collection and everything else of value.
    What did Martha have to say about that? David, to this day has not received his stolen property from the police. Have’nt charges been brought against the police, Martha or Finnigan? I think Roger, out of concern for safety and general appearance asked the Safeway manager to look into it. I’m sorry, I just cannot get past Martha firing Roger from Solid Waste over grocery carts and not even acknowledging the terrible injustice done to David Egan, and many other citizens who have written to the Crescent City Times.
    We have the Garcia permanent disability to pay for after he stole drugs, took them and had cardiac problems, not from taking stolen drugs but from job stress.
    I think the way to start to get rid of this mess is to get rid of the local elected officials that are a part of the Stakeholder’s agenda, and not the citizen’s agenda.
    Read Defend Rural America and see how this all started and how this is all part of the NEW WORLD ORDER!
    http://www.defendruralamerica.com/DRA/Home.html
    Kirk MacKenzie
    Founder
    Defend Rural AmericaTM
    650-380-8027
    Skype: kirkmack1
    Subscribe
    Defend Rural America is a bottoms-up movement to protect the rights and economies of rural counties and states. It is a complete package of educational materials, strategy, tactics, training, and organizing―all done at the county level. It is based on the voluntary support of individuals, organizations, and representatives.

    Over 30% of America’s counties are at the brink of financial collapse, and they will collapse if federal overreach is allowed to continue. DRA, therefore, is at the forefront in providing strategies that can and will turn this around.

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