I just got back from watching The Big Short at the cinema- the film about the 2008 financial crisis.
If you haven't watched it (it was only released in the UK yesterday) then it's basically following a few separate groups of guys who worked out the Housing Market was a bubble and it was about to crash, so they bet against it. I'm not gonna go in to too much detail as I don't want to spoiler the film for anyone!
In a nutshell, the film presented the factors that led to the bubble-Greedy banks, greedy individuals, regulators turning a blind eye, people not knowing what they had signed up for with adjustable interest rate mortgages etc. And only a few people saw it coming and one of the main themes is that anyone could have seen it coming, if they had only bothered to look.
Right at the end of the film it mentioned how in 2015, banks were starting to sell 'Bespoke tranche opportunities' which allows investors to place wagers on the outcome of various loans, bonds, and securities in which they are not directly invested. Similar to the kind of stuff that contributed to the 08 situation.
Basically, my question is, is another crash as big as 08 inevitable? If so, when do you think it will happen? Should banks that were bailed out before by governments be bailed out again if they go bankrupt?
Who's top and bottom?