The various aspects that led to the economic crash of 2008 in inside job a movie by charles ferguson
Almost everywhere you find academic research commissioned by private corporate interests, scandal looms large.
Inside job documentary answers
Subprime loans led to predatory lending. It talked about regulators and ratings agencies. Goldman also bet against the low-value CDOs, telling investors they were high-quality. Massive re-regulation is required to ensure that finance is safely locked up in a straitjacket again. Yes, deregulation did go too far — particularly with the repeal of the Glass-Steagall Act of , which might have prevented banks gambling with depositors' money. Academic economists had for decades advocated for deregulation and helped shape U. Maybe Inside Job will make us more savvy in time for the next crash. Recently, the pope has condemned credit default swaps, calling derivatives immoral. This culture filtered down from the top, and needs to be stopped and questioned a lot more. It took me eight years to finally see it, prompted in large part by a more recent and related documentary, The China Hustle , and what clearly surprised me was the amount of information and argument in the film that so clearly would marginalize it had it been launched in In September, the federal government took over Fannie Mae and Freddie Mac , which had been on the brink of collapse. Who made the plane, and was it the same people who got the pilot drunk? Films such as Inside Job will never venture into such discussions. See also.
This culture filtered down from the top, and needs to be stopped and questioned a lot more. Investment banks bundled mortgages with other loans and debts into collateralized debt obligations CDOswhich they sold to investors.
Geithner became Treasury Secretary. Ferguson notes, for example, that Harvard University economist, and former head of the Council of Economic Advisers under President Ronald Reagan, Martin Feldstein, was a director of the insurance company AIG and former board member of the investment bank J.
Inside job summary essay
The major banks grew in power and doubled anti-reform efforts. After the deregulation, many financial companies were caught in frauds, like money laundering, bribe, cooking books, showing wrong financial performance etc. The website's critical consensus reads, "Disheartening but essential viewing, Charles Ferguson's documentary explores the Global Financial Crisis with exemplary rigor. Investment banks bundled mortgages with other loans and debts into collateralized debt obligations CDOs , which they sold to investors. The latter goes very well with Inside Job as the two films tend to mutually reinforce, explain, and illustrate each other. Even the financial crisis was just a blip. Nevertheless, in some respects is filled with growing echoes of He went on to say that it was obviously influenced by Michael Moore , describing it as "a Moore film with the gags and stunts removed". The bankers know ignorance is their trump card.
Thus, lenders were pushed to sign up mortgages without regard to risk, or even favoring higher interest rate loans, since, once these mortgages were packaged together, the risk was disguised. It helps that Summers looks like a mafia boss, but the difficulties in making the case against him are shown by the need to explain financial products like credit default swaps and how securitisation was used by banks to increase their borrowing.
This ultimately proved to be the case with not a single criminal prosecution reported of any of the financial executives complicit in the financial collapse. One of the great strengths of Inside Job, perhaps owing in part to the fact that it was written by an academic more on Charles Ferguson belowwas its strong focus on academic conflict of interest and the revolving door between Wall Street and government.
What is shown is that there has been an increase in the succession of financial crises from the s onwards—the film places primary blame on the Reagan administration.
But it was too simplistic for the film to imply that we need more financial regulation.
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