Global Financial Crisis of 2008 in the Movie, How We Got Here

840 WordsJan 29, 20183 Pages
The global financial crisis of 2008 has caused millions of people to lose their homes, jobs and savings, and it nearly resulted in a global financial collapse. It resulted in the threat of total collapse of large financial institutions, the bailout of banks by national governments, and downturns in stock markets around the world. On top of that, the housing market was damaged, causing in evictions, foreclosures and prolonged unemployment. There were many factors directly and indirectly caused the Great recession. The crisis resulted from a combination of complex factors, including easy credit conditions during the period between 2002-2008 that encouraged high-risk lending and borrowing practices without assessing default-risk; international trade imbalances; real-estate bubbles that have burst; fiscal policy choices; and approaches used by nations to bail out troubled banking industries and private bondholders, assuming private debt burdens or socializing losses (Lewis 2011). “Inside Job” is divided into five main segments- who, what, when, why and how. The first part of the movie was “How we got here?”. The movie brings the viewers back to the past in the 1930s when US had a strong financial system. The regular banks were local businesses and they were prohibited from misusing depositor’s money. The investment banks were private partnerships, and thus risky investments were not made. Under the regime of president Ronald Reagan, the American financial sector was

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