The 2015 movie “The Big Short” explains how bad government management led to a global depression that saw thousands of people lose work. The problem began in the financial sector, which was a dull industry to work in. Lewis Ranieri was the one who came up with the idea of bundling mortgages to increase returns. However, it’s still low-risk because people pay their mortgages. Their income from security bonds and mortgages grew steadily. They didn’t know what would happen until 2008 when the global economy crashed. Brokers continued to approve mortgage loans without checking the background of applicants. This included whether they were able to pay the loan repayments on time. They were so driven to continue making money that many of the mortgage loans they were applying for were past due.
There are many strategies that financial and real estate industries used to market property and financial instruments. Faria (2018) says that the Property Management Field can be multifaceted and a property manager might take on roles in risk management, marketing or accounting. This section focuses on the skills and tools that Property Managers need to be able to tackle daily challenges. Infographics are a great tool for helping customers track market changes and forecast future trends. This is evident in the movie’s section where Dr. Michael Burry uses infographics to make his calculations. He concludes that betting against the housing markets would bring him a lot. It is a reminder that even if we look at existing data, it doesn’t suffice to make investment decisions. People looking to invest need to be educated and should not place their money in something they aren’t familiar with. This strategy also suggests that looking at data can help you find the best path to maximize your investment and make more money for investors if you’re managing a hedge fund.
It is now time to learn how to profit from the industry’s future trends. Progressive thinking is the key to this strategy. People want to be proactive and anticipate changes in the market. Banks and other financial service companies may not be able to offer what people want, so they should make it known. Banks were misled into believing that the housing market was in boom. Higher returns require investors to take risks.
Jared Vennett from Deutsche Bank was more interested in the introduction and offered Mark Baum, Front Point, a proposal. A portfolio of trends was shown by Jared Vennett to Mark Baum. It shows how the industry’s housing market will change over the next few weeks. Jared provided Mark with the portfolio that he had created. This includes data on how much he could expect to earn from these types of mortgage bond bets.
Mark used personal selling to inform Mark about the subprime trend in mortgage bonds. Mark and his team went to Las Vegas to investigate properties and discovered that the majority of mortgage payments weren’t being made. In the hope of raising more capital, banks approve mortgage loans. As he saw that the house market will be a good investment, he immediately lost his money on Las Vegas.
The flexibility brokers offered their customers made it possible for them to market real property properties. Customers didn’t have long to wait before their mortgage loan application was approved. All of this was done by brokers without telling clients that rates could go up. Agents claimed they had other options. In fact, they only did them to make sure that money was coming in for their clients.
Personal selling can be a very effective strategy in the real-estate and financial services industries. It conveys a company’s concern for their customers. Companies that are interested in risky investments will be careful about who they choose to work with.
It is vital to keep your customer informed about the progress of his financial investments after the sale. Customer satisfaction is ensured by keeping your customer informed about what’s happening to his funds.
Customers will feel more confident that the transaction they entered is legitimate and not fraudulent if they are customer-oriented. As you can see, Dr. Michael Burry is always keeping an eye on his investments to determine if he is making any profits or losses. He was attentive to the requests of his clients and would email them with information.
Jared Vennett was also able to use this strategy. Mark Baum called Jared to ensure that he would earn his investment even though he was paying high premiums.
Zeithaml and colleagues. (1985) Cost-oriented pricing strategies have been more widely used than those that are competitive and/or demand-oriented. This pricing strategy was used by Ben Rickert when he was selling Jamie’s investment to Charlie. Because Ben was an expert in banking and financial services, they asked him to sell them the subprime loans. Jamie and Charlie both became more wealthy because Ben was capable of selling it at a reasonable price. Ben set the price so that both buyers and sellers could agree on it.
The “True Growth Strategy” was used by all the actors in the movie. Sondhelm (2018) says that it uses data analytics to make decisions. This was clear in Mark Baum’s final decision about whether to sell the mortgage bonds. Although he felt sympathy for those who had lost their jobs, he was also having second thoughts. However, what one person will lose is more important than what others. The time was now, he had to make a decision. Finally, Vinnie provided the data necessary to authorise the sale of the subprime securities.
