Wednesday, October 26, 2011

Margin Call Review ****

    If you work in Finance, have any interest in the banking crisis or just need to take a break from your fellow OWS protesters go check out Margin Call. This is a great movie with a great script and cast. There are no Hollywood cliche's here nor mmoore like indictments on the free market economy. Margin Call is a fictional financial thriller that takes places in 24 hours starting with a mass layoff and ending with what this fictionalized bank(I believe Lehman was the model) will do in order to survive.

    Real quick synopsis, the Head of Risk who was just fired was working on some numbers that don't look too good...on his way out he gives them to his subordinate who after running the numbers and models starts calling people back into the firm late at night on a Thursday to discuss their ramifications to not only the firm...but the entire financial market. From here it keeps escalating to higher and higher levels of management.

    What really makes this such a good thriller...is what a great job they did catching what was really going on at the time and likely now. For someone who works(ed) for an Investment Bank I would be very curious to hear what they thought, for someone like me that has learned about their business as a business partner I found it fascinating and so dead on in many places that many if not familiar with this world will think as bull...but are really wholly accurate. For the OWS crowd and their supporters...this is porn. They will be foaming at the mouth watching this.

    There are quite a few lines and soliloquy's here that were really dead on and I will mention where to look for them and who spoke them along with their roles ...but will not provide them to keep this spoiler free.


  • Penn Bagley the Jr Analyst's explanation of his job in the town car and his scene in the Men's room stall
  • Paul Bettany the Head Trader getting dark on the roof and in belief the way the world works in his sports car
  • Jeremy Irons the CEO John Tuld (Lehman ya think?!) in the board room and the executive dining room...Has he ever played a Vampire? If not...he needs to
  • Kevin Spacy is a Managing Director and one of the few characters portrayed with a soul...yet still a company man...the scene with his dog, late night meetings and with Irons in the executive dining room
  • Stanley Tucci as the Trading floors Head of Risk...getting let go at the beginning of the film and on the stairs of his home later in the film explaining his background
  • Zach Quito...when he uses telekinesis to cut the top of Tuld's head off...oh wait sorry wrong show, I mean when he gives Bagley a Vulcan neck...oops wrong movie...Actually he was great in this...in the car with Bagley, when he explains his CV(resume...background...please note this is not Hollywood hype...it's actually more common then you would think) in the boardroom explaining the financial models
  • Simon Baker as the 40 something Executive who is cold blooded and ruthless... in the elevator with Demi Moore and in the initial meeting to discuss the crisis
  • Demi Moore I believe is the CRO... in the elevator with Baker and in the office with Tucci

    There are two things that really hit me at the end of this movie. The first is with so many people from other fields (ie sciences, engineering) getting into finance for the far batter pay...what are we losing? What is not getting invented, developed, built, discovered, changed, improved, etc...We need more Steve Jobs...not guys running equations to just make more money. The second is after attending pop-international-gallery-bermanotomlinson-event where people from many different fields got together for charitable causes...is it all really about the money...isn't it about making the world a better place?

    Now some final deep thoughts...first is the Financial Community is heavily involved in Charity work, more then most people think. So the "1%" are doing some good out there(it's the ruthless 1% of the 1% that cause all the trouble). The rub though is...things are the way they are because we all buy things we don't need and many buy things they cannot afford. Our economy is all based on debt and most of us contribute to it. So if you have a mortgage, credit card debt, live beyond your own means etc...don't be so fast to thrown stones in the glass house you help to create each and every day...

Tuesday, October 25, 2011

Mark Cuban's Soapbox Advice to the OWS Movement and then some

    I saw on Twitter a fairly thought provoking article from Mark Cuban's blog and his thoughts on the Financial Markets. soapbox-advice-to-the-ows-movement-and-then-some/ After you read his piece... my deep thoughts...

    My $.02 for what's it worth is this...the Frank/Dodd bill is a disaster because he doesn't tackle the real problems on Wall St and our Gov't...it attacks the easy to see profits...which is only resulting in not only less profits for banks but less tax revenues...guess where the money comes from that pays Union's, Unemployment benefits etc...???

    Where I think Mr Cuban nailed it is on these two points...

1) Holding Corporations responsible. Buying a share of stock and attending share holder meetings would likely do a bit more then getting high in a park while asking for hand-outs and using the very tools of Capitalism (iPhones, Twitter, Google, etc) while accepting gifts from American Apparel, etc...to attempt to...do what exactly...

2)The stock market was created to raise capital for companies so they can come out with better product/services and in turn become more profitable...that's not what's going on any longer...

    Where I don't agree is in regards to High Frequency Trading...I don't see it going away anytime soon...it's a matter of how it's used. Furthermore I don't think sending our trading markets overseas would benefit us whatsoever and really don't get why he does, unless he was just being provocative.

    Last but not least...while I believe there need to be major changes in Wall St regulation, the Gov't, the Tax code etc...I do not see the OWS as the vehicle to get us there. If anything they are doing more damage then good by diverting Police resources away from high crime areas where they are needed(yes...crime is up) and not only are they not affecting Big Banks profits... they are killing small business's in the Wall St vicinity!
 

    I also had the pleasure of walking through them in USQ when it first started. It was not comprised of intelligent people articulating their thoughts... it was a mass of unwashed idiots screaming and shaking their fists while carrying signs about one thing and yelling about another. The fact that its comprised of anarchists looking to bring down Capitalism, Anti-Semites spewing their rants(yes a minority...but I have 0 tolerance for it) and the clueless looking for something to do...they quite simply do not get my support and I think it's time for them to pack up for the next protest they know nothing about.

    Maybe they can camp out at the Universities that charge the crazy exorbitant fee's that have lead to a TRILLION dollar bubble in unpaid student loans getting ready to burst...or possibly on Barney Frank's lawn. He can come out and explain Fannie and Freddie to them and tell them why he said he supports them while he was at a fundraiser meeting with Investment Banks while in New York recently...