3.What the Big Short\' Movie Gets Right- and Wrong-About the Financial Crisis By

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3.What the Big Short' Movie Gets Right- and Wrong-About the Financial Crisis By Greg Ip Updated Dec. 11, 2015 5:34 p.m. ET The global financial crisis has inspired hundreds of books, but only a handful of movies. It's hard to make mortgages telegenic. The Big Short" hopes to change that. Based on Michael Lewis's best-selling book by the the mortgages behind the housing bubble. same name, it tells the story of a handful of traders who made a fortune betting against Director Adam McKay is better known for making comedies. "The Other Guys," a 2010 action comedy he directed that revolves around a financial fraud, piqued his interest in finance, and led him to Mr. Lewis's books. When he landed the "The Big Short," he immersed himself in books and articles about the crisis and visited a bond-trading company "I feel there's a giant gap between the professionals and experts, and average people" when it comes to finance, he says. "Average people feel they're too dumb, or banking is boring. His movie goes a long way toward narrowing that gap. Viewers get an entertaining lesson securities are constructed and how vulnerable they were to default. But it is an incomplete picture. By dwelling so intensively on mortgage finance, "The Big in the financial engineering behind the mortgage bubble, such as how mortgage-backed Short" underplays the more complex economic forces that produced the bubble and intensified the crisis. By laying the bulk of the blame on Wall Street venality, it brushes off less nefarious but more compelling reasons why so many on and off Wall Street didn't see it coming. The movie, which opens in limited theaters Dec. 11 and more broadly on Dec. 23, begins by depicting how in the 1970s Lewis Ranieri of Salomon Brothers began packaging mortgage loans into mortgage-backed securities. The MBS was "simple and valuable, but it "mutated into a monstrosity that collapsed the world's economy," declares trader Jared Vennett, a fictionalized version of Deutsche Bank trader Greg Lippmann played by Ryan Gosling.

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Behavioral economics has turned out to become one of the most important and integrated parts of the modern economics. All the basic and fundamental principles of economics are included in Behavioral economics in which the main focus remains on optimization and equilibrium maintenance. The man focus however remains on developing and extending the concepts so that a greater accuracy can be accomplished.

As per the Behavioral economics, the economic actors will look to select the best feasible alternative and there is a possibility of mistakes done by these actors while selecting a certain alternative.

In order to develop different types of economic theories related to human decision making , Behavioral economics uses psychological experimentation and it has been found that there are number of biases which are resulted from the manner in which individuals think and feel. The main attempt of Behavioral economics is to modify the way economists consider the perception of value and expressed preferences of individuals.

The seven principles of Behavioral economics are as below:-

Importance of BE :-

BE is playing a very critical role in the decision making for marketing department at present. The can help in answering the various questions which the marketers were looking to find out the answer of from long time; for example

As behavioral economics tries to find out the psychology behind each economic decision, thus marketer can use these rationales in effectively deciding the various marketing related decisions such as pricing, advertising, branding, positioning , distribution, sales promotion and so on.

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