The Big Short Misleads on Ratings Agencies

The Big Short Misleads on Ratings Agencies

The Big Short has captured rave reviews, not just from conventional critics but also from the likes of Paul Krugman. By featuring Hollywood heavyweights Ryan Gosling, Brad Pitt, Christian Bale, and Steve Carell, this exposé of the housing bubble and ensuing financial crisis was sure to gain attention. For his part, director Adam McKay does a great job keeping the plot moving forward while accurately conveying the essentials of the Wall Street and commercial lender shenanigans.

The Big Short leads viewers to believe that shortsighted greed is the ultimate explanation for why the ratings agencies gave their blessing to dangerous products.

The movie was surprisingly entertaining, given the dry subject matter, and...