Discussion #7 "The Big Short" Basically, "The Big Short" is a movie and a fictionalized recap of what happened in the securities market and banking sector when the subprime fiasco took place. It has been noted that when a similar kind of fraud took place with the Savings and Loan Crisis in the 1980's that a number of the bad actors were imprisoned. No one went to prison as a result of the subprime crisis - though it is estimated that hundreds of thousands of jobs were lost, thousands of homes, particularly in California, were foreclosed upon and a number of communities were decimated by what had occurred. Since that time, some financial regulation designed to head off a similar disaster has been put into place, but most experts contend that those rules still put the economy at grave risk of a similar crisis. There has been talk of reintroducing the Glass Steagall regulation that would prohibit banks to participate in speculative investment banking activities, but it has gone nowhere and the current congress and administration are moving toward less financial regulation - not more. Given the state of the regulatory climate and the protections that are currently in place for the investor, what should you do as a personal investor, saving for retirement, as a licensed professional who audits these firms (or firms that invest with these banks), or as a licensed professional who deals with tax compliance for these firms? How do you protect yourself and your clients from in this environment? What will you do going forward knowing some of the risks of the financial industry