The Big Short and Dunning-Kruger Effect Concluded

Hard-working citizens have been forced to dip into their wallets to rescue the very people that destroyed so much of their personal economic futures. The downwardly mobile American electorate has, by and large, an intuitive understanding that they are being royally screwed by the Powers That Be even if they aren’t familiar with the particulars.

The Big Short:The Dunning-Kruger Effect Part IV

While there’s been no shortage of post-mortems on the cause of the Great Recession, the most entertaining has to be the new movie The Big Short, a Golden Globe and Oscar nominee for best film, based on Michael Lewis’s book of the same name… The film follows three sometimes inter-related investment entities as they uncover the massive fraud that had taken over the real estate industry, and their efforts to profit from that knowledge. That a morality tale emerges in the wake of their pursuit of “price discovery,” a traditional goal of the free (unmanipulated) market, is just icing on the cake.