Movie Review - Margin Call

I went to watch the movie Margin Call with the ABC Bullion team last night, totally enjoyed the movie and would recommend it to any one who has an interest in economics and investing. It doesn't take much prior knowledge, but those with a working understand of securities will get the most out of it.

A couple of critiques I will make though. They mention selling MBS's without explaining what the hell they are (maybe that got edited out) or mentioning that the only reason they could be sold in the first place was they were rated AAA by one of the holy trinity of US rating agencies.

Also I was stunned by the lack of greed displayed by the main characters when they realized  that the company and many of their customers would come close to crashing when the US markets opened in several hours time. Why weren't they calling their London traders (their City trading desk should have been still open) and buying as many puts on their own and their clients stock, and shorting the MBS market they were about to annihilate. Even if the company wasn't up for it the individuals should have been in with both feet.

I particularly enjoyed the "security guard with box" scenes when staff were retrenched, I have survived over 10 "box days" now in the last 25 years. It becomes a sort of corporate Darwinian selection after awhile, with your work team being whittled down to those with the sharpest minds and tongues.

Tips for young players dodging the box:

1. Don't suck up to your boss or be a yes person, no one liked those who did it at school and no one in the office does either. Your team will stab you in the back and your boss will have no respect for you, which will make you cannon fodder come The Box.
2. Speak your mind and be brutally honest to all, shout and passionately convey your thoughts, make people remember you (this also reduces your stress level). Boxes like people who's name they can't remember.
3. Have back up money saved and if possible other skills and career options just in case your boss is a complete idiot and retrenches you even though you are a fricken genius.