Hello and welcome to Broconomics. Now, in this episode, I have been asked many, many times to, because I did the review of Margincourt, my favourite financial movie, I've been asked many, many times to cover the big shorts.

And, well, if it is demanded, then so I shall provide. This is going to be my review of the big short and a little, well, actually, it's mostly

an explanation of what went on using the movie as a prop, but, you know, it gets us to the same

place. Right. Now, before we go into the movie itself, which you can, apparently you can buy on

YouTube or presumably a whole bunch of other places, Prime and whatever.

Before we get into that, I thought, let's give a few minutes just on the background of what

led up to it, because it was a kind of perfect storm of factors that led into it.

I want to start the story.

You could start the store in a number of places, but I want to start it in 1997, 1998, the Asian financial crisis.

This was basically a whole bunch of Asian economies and Russia, wrecking up far too much debt,

a bit like the Western world is today, and the Western world doesn't seem to have any problem with it,

because it seems to think, you know, debt crisis is what happens to other countries, not us.

But anyway, the Asians got there first.

That blew up rather nastily.

And emerging economies, Asian economies, they started thinking, okay, well, let's keep our money in the US, because that would obviously be better.

And it basically started to channel a whole load of money towards the US.

That sloshes around and ultimately ends up in houses, in mortgages, because it's got to go somewhere.

That's the route that it went. It was a path of least resistance for a whole bunch of reasons,

regulatory reasons, cultural reasons and so on. So massive gluts of capital comes into the US,

starts to push houses higher from about, you know, 99, 2000 onwards. I remember this is just when I was

getting into, getting out of university and starting to look for a house and just every year

houses just went up and up and up. Same in the US, same across the Western world. The next

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