# The Big Short Ending Explained
The Big Short is a 2015 film based on Michael Lewis’s 2010 book that tells the story of how the 2008 financial crisis unfolded. The ending of the movie shows what happened to the main characters after their bets against the housing market paid off in a massive way.
Michael Burry, played by Christian Bale, was the hedge fund manager who first discovered that the U.S. housing market was built on risky subprime loans. His long-term bet against the market exceeded 1 billion dollars, but it required him to pay substantial monthly premiums to the banks. When his investors got nervous and demanded he reverse his position, Burry refused to back down. He even restricted withdrawals from his fund, which led to lawsuits from angry clients. However, when the 2008 financial crisis finally hit, his fund’s value increased by 489 percent, resulting in overall profits of more than 2.69 billion dollars.
Jared Vennett, another key character in the film, received a bonus of 47 million dollars for the profits he made on his credit default swaps. Mark Baum, who led a team of investigators that uncovered the fraud in the housing market, became more gracious after the financial fallout. His staff continued to operate their fund even after the crisis.
Charlie Geller and Jamie Shipley were young investors who discovered Vennett’s proposal and decided to make their own bets against the housing market with the help of retired banker Ben Rickert. They turned their 30 million dollar investment into 80 million dollars. However, their faith in the financial system was broken when they learned about the severe consequences the crisis had on ordinary people. After the crisis, Geller and Shipley tried to sue the ratings agencies for their role in the fraud, but were unsuccessful. They eventually went their separate ways, with Shipley continuing to run the fund while Geller moved to Charlotte to start a family.
Ben Rickert, played by Brad Pitt, returned to his peaceful retirement after the crisis ended. Michael Burry closed his fund after facing public backlash and multiple IRS audits. He then shifted his focus to investing only in water securities.
The ending of The Big Short emphasizes a sobering message about the financial crisis and its impact on regular people. While the protagonists made enormous profits from their bets against the housing market, they were left with mixed feelings about their success. The film highlights the lack of accountability for those responsible for the crisis and points out that systemic issues in the financial system remained unaddressed. This suggests that similar crises could happen again in the future if nothing changes.
Sources
https://en.wikipedia.org/wiki/The_Big_Short_(film)
