Housing prices hadn’t really gone down in the 20 or so years before 2008. So the “risk” of decreasing prices was just under-appreciated. When the firms started

Housing prices hadn’t really gone down in the 20 or so years before 2008. So the “risk” of decreasing prices was just under-appreciated. When the firms started making tons of money, it’s probably easy to ignore the risk department. Margin call is another great movie. Doesn’t really explain the details of what went wrong, but I think it shows how a financial institution unravels when they accept that the risk is real and it is going to come down.