The Big Short Analysis

Analyzing The Big Short
The whole housing market is built like a giant Jenga tower. The AAA mortgages are at the top of the tower while the BBB’s are the lowest base of the tower. The AAA’s and AA mortgages were to make so much money that the extra money was to trickle down to the BBB’s at the base. This information is in the book The Big Short: Inside the Doomsday Machine written by Michael Lewis. He has written many best-selling non-fiction books like Moneyball and The Blind Side both were also made into movies. In the chapter “How Can a Guy Who Can’t Speak English Lie?” Greg Lippmann, an executive banker at Deutsche Bank, tells this information to Steve Eisman and his mutual fund manager Vincent Daniel in a presentation to get them to invest in CDS’s or credit default swaps. Lippmann claims in the presentation that the banks have gotten greedy trying to cheat the system and they’re about to get caught and we can profit from it. …show more content…
Lippmann uses a claim of fact. He has to prove in his presentation is this true? Does this bubble exist? Is it a fact that it will burst? And he answers all of them very well. First he proves that the bubble exists. He argues this with the proof argument of sign. Lippmann brings an actual Jenga set to the presentation to illustrate the information from the first paragraph. While showing the information about extra money from AAA mortgages trickling down to BBB mortgages the money soon doesn’t reach BBB because B and BB mortgages need so much more money. The mortgage rates go to “0” and they fail so he pulls the base out from the tower and the whole thing collapses showing that if even the bad mortgages fail the good mortgages will burst just like a