Hollywood’s Take on Finance | Episode 1

One of the emerging themes of film in recent years has been the dramatization and production of stories from the financial world, both fictional and true. From legitimate investor foresight amounting to trillions in return at the expense of millions of hard-working citizens to the gambles of fraudulent activity and serious consequences associated with these cowardly actions. Many movies over the years have not only been entertaining, but they have also provided valuable takeaways in regards to financial education.

We provide our take on one of our favourite films concerning money, loans and credit, and the financial lessons that can be learned, both by us, and you.

APPLY FOR A PERSONAL LOAN

The Big Short – 2015

This film was based on a true story surrounding the 2007-2008 financial crisis. A variety of factors played into the “Great Recession” and bursting housing bubble. Lenders were giving away home loans to high-risk borrowers who normally would have been turned away a decade earlier. Not only were higher-risk mortgages being funded, but they were also then being grouped together with low-risk borrowers and sold in bundles as bonds, mostly incorrectly rated and nowhere near reflective of their true value and level of risk.

A group of investors saw an opportunity within what they deemed a corrupt system, believing they could profit from the collapse of the housing market. While millions of people lost their homes as well as jobs, and some of the longest standing institutions in America faced bankruptcy, this small handful of investors reaped tremendous reward from the suffering of millions.

Finance Lessons Learned

The responsibility of correctly rating and underwriting loans falls on the shoulders of all links in the chain of the financial industry, especially online lending institutions such as LendingArch. This is why we take great pride in preaching our stance on financial responsibility and borrower responsibility. If there is any indication a loan may worsen your money situation, we will work with you to better your financial future through other means.

Our goal is to create a healthier Canadian financial ecosystem providing lower cost and alternative loan options to personal debt, and only providing leverage to consumers for a positive financial use, not predatory. Financial advancement is a joint effort, both lending companies and borrowers working hand in hand to create a sustainable and stable ecosystem.

APPLY FOR A PERSONAL LOAN

About The Author

lending

It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using 'Content here, content here', making it look like readable English.

You May Also Like:

The Ins and Outs of an Auto Loan

Are you considering getting an auto loan? If so, you likely have many questions about where to start, how it ... Read more

Read More

How Will A Business Loan Affect My Credit? What You Need to Know

As a small business owner, especially for those just starting out, we know that it can be tough to find ... Read more

Read More

Understanding Car Loans: The Ultimate Checklist for Finding a Car Loan

Cars are expensive, but they’re also necessary for life in Canada. Indeed, if you have a car, it’s hard to ... Read more

Read More