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Who Is Most To Blame For The Movie Essay

Decent Essays

Worth 15 points
1. Who is most to blame for the events depicted in the film? Were you angered by the events? Why?
The government is to be blamed for the events in the film even though it was the banks that caused the harm. To begin with the government did little to nothing to regulate what was going on. In fact it was stated in the video that it deregulated and caused taxpayers billions of dollars. Instead of putting a stop to what was going on it signed the Gramm-Leach-Bliley Act which allowed banks with consumer deposits to engage in risky investments. In addition the federal government had no plans in case of a bankruptcy. The government had multiple opportunities to take action but did not. For instance, the SEC didn’t conduct any investigation on the banks during the Bubble period and actually lifted the leverage limits on banks instead of reducing them. Multiple events angered me in this film. Some of them were the actions taken by the government that instead of limiting an action they would do the opposite such as in the case of the SEC and the overturn of the Glass–Steagall Act by the Gramm-Leach-Bliley Act. In addition there were no punishment for the senior executives or the financial firms that had deceived investors and cost them their homes, jobs, and …show more content…

If banks don’t charge those interest rates many people may find it tempting to borrow money from the bank knowing interest rates are not that high. Payday advance business charge very high rates for loans too, but this are typically higher then the banks. This may be because payday advance business usually requires no credit check and are at higher risk of getting paid but the person getting the loan is usually trapped in debt because of the high interest rates. I feel like the bank takes the necessary measures while payday advance businesses go overboard on the fees

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