Michael speaks with representatives at Goldman Sachs to purchase credit default swaps on mortgage bonds. They explain that this means he is betting against the housing market, that millions of people won't be able to pay off their mortgages. Michael surprises them throughout the conversation but especially when he asks to purchase $100 million instead of $5 million in credit default swaps.
Jared illustrates the financial crisis of 2007-2008 succintly using the game, Jenga. He explains the problem with mortgage lending and how he and others can profit off of subprime mortgage loans using credit default swaps.