PrithiPal Singh’s Reviews > The Big Short: Inside the Doomsday Machine > Status Update

things about howie hubler, fixed asset trader @ morgan stanley, and his big trades with deutsch bank, citibank ,meryl lynch.. and had loses.

The Long quiet presents the sequence from movie when Joe GreenBlatt (person who hired MB), starts yelling and all investor have diminished faith in system as well as michael's ability to guess bond market good. At this point, banks start failing, ABX fall down, banks betting against their own interest (CDOs on AA rated sub-prime mortgages). But Voila! the returns are turning positive now at Scion Capital.

Just over the meeting in Las vegas with the CDO managers from the biggest banks. Cornwall capital (charlie and jamie) and frontpoint funds( eismann and team) consolidated their belief over the fate of subprime mortgage which will take down the whole housing market.

Main culprit shown : Rating agencies. They don't had the clue about the underlying mortagages(had same info as investors like eisman), shitty models etc.