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Hi, how are you?
Hey, Mr Bennet. Here we have.
- Let's see what you got. - You smell that? What is that?
- What? - What's that smell?
- Your cologne? - No.
- Opportunity. - No. Money.
- Oh... Okay. - I smell money.
- Okay.
- Chris... - Damn it. Sorry.
This is your basic mortgage bond.
All right? The originals were simple.
They were just thousands of triple A mortgages bundled together,
guaranteed by the U.S. government.
The modern ones are different.
They're private. And they're made up of layers of tranches.
Highest level, triple A, is getting paid first.
The lowest rated, B, is getting paid last, taking on defaults first.
Now, obviously, if you're buying B's, you could make more money.
But they're a little risky.
Sometimes they fail.
Chris?
Somewhere along the line, these B's and double B's went from a little risky
-to dog shit. Where's the trash? - Behind you.
I'm talking rock-bottom FICO scores.
No income verification.
Adjustable rates. Dog shit!
The default rates are already up from one to four percent, fellas.
And if they rise to eight percent, and they will,
a lot of these triple B's are going to zero, too.
And that...You're too close. ...is an opportunity.
Okay, you're saying that at eight percent the bonds fail
and we are already at four percent?
- That's right. - If they go to eight, it's Armageddon?
Yeah. That's right.
How come nobody's talking about this?
You're completely sure of the math?
Look at him. That's my quant.
- Your what? - My quantitative!
My math specialist. Look at him.
You notice anything different about him? Look at his face.
That's pretty racist.
Look at his eyes! I'll give you a hint.
His name's Yang!
He won a national math competition in China!
He doesn't even speak English!
Yeah, I'm sure of the math.
Actually, my name's Jiang and I do speak English.
Jared likes to say I don't because he thinks it makes me seem more authentic.
And I got second in that national math competition.
So, you're offering us a chance to short this pile of blocks? How?
With something called a credit default swap.
It's like insurance on the bond, and if it goes bust
you can make ten-to-one, even twenty-to-one return.
And it's already slowly going bust!
Ten-to-one? Twenty-to-one? No way.
And no one's paying attention.
No one is paying attention!
Because the banks are too busy getting paid obscene fees, to sell these bonds.
But wait. You are the bank.
Well, you work for the bank. I bet your margins are pretty nice and fat.
Let's not talk about my margins, by the way.
Being nice and fat, that's a nice shirt. Do they make it for men?
Aren't you the bank?
I work for the bank. I don't think like a bank.
Big bank, small bank, I like to make money. All right?
Let me put it this way. I'm standing in front of a burning house...
And I'm offering you fire insurance on it.
A's, zero. B's, zero. Double B's, zero. Triple B's, zero.
And then that happens.
What is that?
That's America's housing market.
verification - verifica
triple - triplicare
thousands - migliaia
thinks - pensa
think - pensare
these - queste
talking - parlando
standing - in piedi
government - governo
english - inglese
bennet - bennet
double - raddoppiare
defaults - default
level - livello
default - predefinito
competition - concorrenza
getting - ottenere
front - davanti
mortgage - mutuo
mortgages - mutui
happens - accade
chance - opportunità
eight - otto
banks - banche
quantitative - quantitativo
obscene - osceno
could - poteva
offering - offerta
taking - presa
authentic - autentico
tranches - tranche
credit - credito
right - destra
buying - acquisto
somewhere - da qualche parte
anything - qualsiasi cosa
money - i soldi
chris - chris
specialist - specialista
about - di
close - vicino
along - lungo
cologne - colonia
called - chiamato
going - andando
guaranteed - garantita
actually - in realtà
already - già
attention - attenzione
bonds - obbligazioni
notice - Avviso
armageddon - armageddon
basic - di base
blocks - blocchi
highest - massimo
layers - strati
bottom - parte inferiore
adjustable - regolabile
modern - moderno
different - diverso
racist - razzistico
simple - semplice
burning - ardente
house - casa
housing - [object Object]
little - piccolo
because - perché
lowest - minore
private - privato
insurance - assicurazione
likes - piace
behind - dietro a
makes - fa
scores - punteggi
margins - margini
income - reddito
opportunity - opportunità
national - nazionale
smell - odore
obviously - ovviamente
together - insieme
bundled - in bundle
originals - originali
completely - completamente
rates - aliquote
sorry - scusa
china - cina
paying - pagare
small - piccolo
percent - per cento
first - primo
pretty - bella
quant - Quant
rated - nominale
jared - jared
return - ritorno
risky - rischioso
twenty - venti
saying - detto
shirt - camicia
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