“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.
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| The poster of the movie. |
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