Thursday, January 26, 2012

Trading Places

Yes there is still time, but I am afraid only to buy the DVD.  Available for as little as 4 GBP   I am referring to the 1983 classic movie Trading Places.

This movie is an educational guide as to how a Futures Market would work.   You can offer to supply goods e.g. Pork Bellies at a future time at a specific price.  Say you offer Bellies at the same price as today.  Somebody who wants Pork Bellies in the future might think the price will rise so enters into a contract with you.

In the future then if the price decreased  (i.e. did not go up as your buyer expected) then parties are locked to the contract, you win. Alternatively if the street price went up and I had to buy the Pork Bellies later to give to you, then you gain.

Of course the movie does not cover one of the fundamental changes from a gentlemans gentleman industry to one full of Chavs.  From an industry when your risked your own money, to one where you risked someone else's.

Aside from the financials  I think the movie contains so many memorable scenes and quotes.  Here is just one:

Billy Ray[watches Louis clean his shotgun] You know, you can't just go around and shoot people in the kneecaps with a double-barreled shotgun 'cause you pissed at 'em.
Louis: Why not?
Billy Ray: 'Cause it's called assault with a deadly weapon, you get 20 years for that shit.
Louis: Listen, do you have any better ideas?
Billy Ray: Yeah. You know, it occurs to me that the best way you hurt rich people is by turning them into poor people.
Coleman: You have to admit, sir, you didn't like it yourself a bit.

More than this, watch this excerpt  and repeat after me: It was the Greeks, it was the Greeks :-)

And why would you need this humour?   Well with financial armageddon coming to a European country or American Continent, well presently,  you are going to need some laughs to get by.  I thought I might start a little timer ...

It was the Dukes  (Repeat after me: It was the Greeks)
I can see