Analysis Of The Documentary ' Inside Job ' Essay

Section Two: 1. The documentary, “Inside Job” provides an interpretation of the causes and consequences of the 2008 global financial crisis. Is this interpretation compelling? Be sure to include institutional, ideological and interest factors in your analysis. The movie, the

Many factors that led to the crash of the financial markets in 2008. Liberals and conservatives have differing views on the reasons for this crisis. From 1980 to 2007, deregulation, HUD, the Community Reinvestment Act (CRA), and bank management pushing banks to make high risk loans caused the market to shatter. Hedge funds contributed a humongous portion of the market crash. A commission of conservatives and liberals was established to try get to the bottom of how the stock market crashed. The name of the commission to conduct this study is Financial Inquiry Commission.

The great recession of the year 2007-2009 had a substantial adverse impact on the US Economy and the world. Charles Ferguson documentary narrates how politicians, bankers, and economist conspired to create a crisis that caused high unemployment, increased the United States global debt and contributed to the loss of investments and savings. He describes how banks resisted regulation in the early 1990's by CFTC and how successive regimes led to the crisis by enacting laws that supported the process.

The financial crisis that occurred in 2007-2008 is narrowly related to what happened with the housing market and the foreclosure crisis. In 2006, the housing market peaked due to newly available loans such as interest adjustable loans, interest only loans, and zero down loans for people with low-income jobs. Housing prices were increasing radically and new homeowners were taking out mortgages that they would be unable to pay for in the future, all in order to be able to afford homes with such steep real estate value. By 2007, things began to go downhill. Interest rates had begun to rise steeply, mortgage companies had to file bankruptcy, and banks across the country required bailout funds from the U.S. Treasury in an effort to recover

In addition, one must note that those who caused the financial crisis avoided punishment. They were the ones who lead the economy into failure and, now, promising that they are the only ones who can fix it. In Inside Job, it demonstrated the consequences of the crisis and financial innovation, through the educational system. It means that those who consulted with financial firms and companies were professors or on the board of directors of ivy league schools, who teach their economic ideologies onto the future generation.7 Ergo, this is creating a vicious economic cycle that needs to change.

The financial crisis did not happen in a day or two, it was triggered by a variety of events that happened.in years ago. In year 1998, The Glass-Steagall legislation was repealed, it is a legislation that separated investments and commercial banking activities in the financial sector. This act then allowed banks in the US to act in both the commercial and investment fields, which allowed them to participate in highly risky business. This is somehow responsible for the mortgage-backed derivatives, which is a main cause of the

Savings and Loans were specialized banks that used low-interest, but federally-insured, deposits in savings accounts to fund mortgages. However, in the 1980s, money market accounts became more popular by offering higher interest rates on savings. Consequently, investors became pulling money out of savings accounts, depleting the banks' source of funds.

The Great Recession of 2008 was the most devastating recession since the Great Depression itself. To further investigate what caused this, we interviewed our mother Marianne Massinger. She has worked in the finance industry for many years now, and she was able to witness and experience the effects of the recession personally. Overall, the information found through our research on the Recession of 2008 closely lined up with the accounts given by our mother.

Q. 1. What were the major factors that led to the recent financial crisis? How did we get here?

The underlying problems that caused the financial crisis of 2008 began building before many economists and policymakers are willing to admit. Since the laissez-faire policies of the Reagan administration in the 1980s, inequality and unemployment heightened. “Between 1976 and 2006 (...) ation-adjusted per capita income increased by 64 percent, for the bottom 90 percent of households it increased only by 10 percent. For the top one percent of households it increased 232 percent,” (Wisman 2013, 932) causing an income gap. Another arsing issue was globalization after World War II. The economy’s structure changed and outdated previous economic policy. Manufacturing jobs were outsourced because labor was cheaper abroad; the US imported more goods than it exported, causing a trade deficit.

“Inside Man” was released in 2006 and would later become the highest grossing film for the director Spike Lee. The film is a crime-drama, located primarily in a bank in New York City run by multi billionaire Arthur Case. Although the film is a thriller and contains bits of action and suspense, the movie focuses heavily on the difference between good and evil. The movie begins with a shot in medias res of Clive Owen’s character Dalton Russell explaining the difference between being stuck in a tiny cell and being in prison while he moves around a small room

While the film did not have one specific main character it did have key players that made the crisis happening. The first being the lobbyist that lobbied to make this acts and laws pass. Those people made rational choices to have those laws passed that they knew they could make money off, acting in their own self-interest. The next is the major investment and banking companies for supplying subprime loans to Americans that they knew could not pay back. They choose to do this and to sell their clients bad deals in order to make a profit. One of the most rational actors is Henry (Hank) Paulson, the former CEO of Goldman & Sachs. He conveniently steps down as CEO to work for the Department of the Treasury right before the financial crisis. Paulson then became the leader in the government bailing out these major firms like the Lehman Brothers. This is

The 2008 financial crisis was a huge deal. Ben Bernanke said it could’ve resulted in a 1930s style global financial economic meltdown with financial stipulations. But what happened? Why did it happen? And could have it been avoided?

The Global Financial Crisis, also known as The Great Recession, broke out in the United States of America in the middle of 2007 and continued on until 2008. There were many factors that contributed to the cause of The Global Financial Crisis and many effects that emerged, because the impact it had on the financial system. The Global Financial Crisis started because of house market crash in 2007. There were many factors that contributed to the housing market crash in 2007. These factors included: subprime mortgages, the housing bubble, and government policies and regulations. The factors were a result of poor financial investments and high risk gambling, which slumped down interest rates and price of many assets. Government policies and regulations were made in order to attempt to solve the crises that emerged; instead the government policies made backfired and escalated the problem even further.

There has been a debate for years on what caused the Financial Crisis in 2008 and if there was one main cause, or a series of unfortunate events that led to the crisis. The crisis began when the market was no longer funding many financial entities. The Federal Reserve then lowered the federal funds rate from 5.25% to almost zero percent in December 2008. The Federal Government realized that this was not enough and decided to bail out Bear Stearns, which inhibited JP Morgan Chase to buy Bear Stearns. Unfortunately Bear Stearns was not the only financial entity that needed saving, Lehman Brothers needed help as well. Lehman Brothers was twice the size of Bear Stearns and the government could not bail them out. Lehman Brothers declared bankruptcy on September 15, 2008. Lehman Brothers bankruptcy caused the market tensions to become disastrous. The Fed then had to bail out American International Group the day after Lehman Brothers failed (Poole, 2010). Some blame poor policy making and others blame the government. The main causes of the financial crisis are the deregulation of banks and bank corruption.