Ok so I just saw this movie. Not sure if I should go to /biz/ but how did these guys make money off the recession?
I enjoy watching these types of movies but sometimes I get a little lost, especially when they were explaining the different types of loans or whatever.
I still liked the movie though.
>>53875378
Fuck.
>>53875378
They basically traded the stocks that bet with the banks to stuff that bet against the banks and because no one was thinking the banks would lose money they gained massive returns.
The clue is in the title. Look up what shorting means in finance.
Short selling dude.
I only understood it after playing railroad tycoon 3 so you might want to try that.
For now you can basically think of it as 'I bet that this stock will go down in value'.
You buy the stock with someone else's money, and they pay you if the price goes down. And you pay them if it goes up.
You sell something you don't have (say someone borrows it to you).
Borrow your friends new car. Sell it to someone for 30k. The price of a new car drops in time. Then you buy one for 20k and give back to your friend. You've made $10k.
>>53875374
GTFO OP
>>53875470
>Buy
No.
>>53875496
Correct.
You sell something you don't have and then buy it back at a lower value and keep the difference.
