The Big Short was short on reality? Hardly.
It was no fiction. Our financial system is every bit as corrupt and full of rent-seeking as our political system is. They have, in many ways, merged into one entity, where the government allows the TBTF institutions to get away with breaking any law they like, and in return those institutions flood the system with campaign dollars.
Tinkering with banking regulations brings in BIG CAMPAIGN DONATIONS... Every little tweak of the regulations are worth millions of dollars to someone - and BOTH sides pony up to buy government officials..
Shaking the Banking Money Tree works for BOTH parties... Cash comes rolling in...