America’s housing system still has not been properly reformed
I&#x27;d agree that the US housing and derivatives markets are in a much better position than in 2007-2008.  Atleast people who are getting mortgages now have some form of documentation, and risk manages are being asked to do their jobs.<p>The crisis now is that, and this is just my opinion, low rates are here to stay. with the amount of money in the system, people are being priced out of homes and as time goes on the amount by which they are priced out in the big cities is only going to grow.<p>As an aside...<p>I&#x27;m not a lawyer but I&#x27;ve heard people say My cousin Vinny is the most accurate court room movie ever.  In a similar vein, I&#x27;d nominate the Big Short as one of the more accurate wall street movies ever made.<p>It showed the lone wolf who not only saw the coming crash, this was far and away the easiest part, but figured out how to profit form it by getting the banks to write him a CDS.<p>The two smart kids working out of their garage that were smart enough to succeed despite all their mistakes.<p>The hedge fund who did an incredible amount of due diligence, going to properties, knocking on doors, talking to people inside the industry to put together the pieces that no one else could.<p>The wall street sales guy who sold the CDS knowing that it might bankrupt his company but figured he&#x27;d make a killing on his commissions long before that happened.<p>And the most accurate part of the movie was that it showed the anguish that each of these people went through.  They&#x27;d seen something no one else had, been right about it, had the event happen and even then everyone else continued to plug their ears and pretend nothing was going on while they continued to bleed money each month.  
It really did a good job of showing that you can be right about everything and still not make money if the rest of the market continues to act insane.<p>In 2007 there really was a sense that people knew things were way out of hand but everyone was thinking, &quot;If I can just get one or two more years on the bonus cycle, I&#x27;ll be able to get out&quot;.  To be fair, this type of thinking probably ins&#x27;t going away anytime soon.