Wednesday, September 30, 2015

This is a summary of the movie with the viewpoints from the author.

Inside Job
            The movie “Inside Job” was directed by Charles H. Ferguson about the financial crisis of 2008. It brilliantly describes about the systemic corruption of the financial services of the United States and the consequences of such corruption. It gives insight about the changes in the policies over the past few years and banking practices that will eventually create the crisis.
            It all started during the times when America’s financial system was still regulated as a result of the Great Depression of the 1930s when President Ronald Reagan started to deregulate it with the help of several lobbyists whose ideas is that the economy will flourish if it was deregulated. However, this was not the case. Every financial institution in America is involved in some sort of ‘Ponzi Scheme’ that by the mid 1990s, these institutions, primarily banks, are earning a lot from this new system, wherein these bankers gamble and let the investors put their money in these collateralized debt obligations (CDOs) in which it s rated as AAA or safe to invest by different credit rating agencies like Moody’s, Standard & Poors, and Fitch. Such investments came as a result of lenders giving unlimited loans, in which these debts are difficult to pay back. Such loans were known as subprime loans, and these loans are considered risky by the definition it lends financially to those who are known to have less credibility or has problems regarding credit transaction history. Giving this matter, I believed that it was the deregulation, brought by greedy, corrupt people who has connections in the Government, who caused the 2008 financial recession that hit globally particularly in the country of Iceland.

            In this perspective, it is clear that the bankers who are behind this crisis are having tremendous bonuses and thus, it came from their systematic success of having the masses unemployed, affected, and become poor. Such destruction from unprecedented scale give way to the bankruptcy of AIG and Lehman Brothers, and as well as other companies who declare more losses than gains. Therefore, the crisis implies that with power comes responsibility.

The poster of the movie.

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