The documentary, “Inside Job” goes into detail about the various organized corruptions that took place in the US society and in Iceland. This documentary gives a stimulating analysis of the global economic financial crises of 2008, which resulted in people losing their job and homes. With this happening, it put the US in one of the worst financial states since the great depression. These factors nearly resulted in a global economic collapse. The key aspect of the film is the extensive interviews given by politicians, financial insiders, professors, and journalist.
The film informs its audience that the reason the financial crises took place is because of corruption from investors and people that we give power to in government. It illustrates to the viewer that when everything went bad in the economy that the burden fell on the taxpayers to bail out the banks that made bad investments with their money. The taxpayers felt the crisis the worse when they didn’t do anything at all but be an abiding citizen, living a mediocre life, while the CEOs of these companies were splurging their money.
Need essay sample on "Inside Job" ? We will write a custom essay sample specifically for you for only $12.90/page
A key aspect that dramatically impacted the economy was the change of the mortgage structure, being that an illusion was created. Bankers didn’t care who they gave mortgages to or if the people could actually qualify to pay it or not and they were just receiving AAA ratings and this is known as the bubble/ housing boom. Prices of homes were worth more than they actually sold for and the people had loans that became worth more than there actual home, that is later know as a big ponzy scheme.
The Bubble took place in 2001 until 2007, the money that was borrowed by an investment bank compared to the assets that the bank owned was reaching unprecedented levels. During this time, investors could buy the CDS (credit default swap) so that they could bet against the CDOs that they didn’t own. This is because the CDS was similar to an insurance policy. A lot of CDOs were backed by subprime mortgages. Goldman- Sachs sold a ton of CDOs in the beginning of 2005. He also bet against the low value CDOs, lying to investors that they were high quality.
The AAA-rated instruments soared from a measly handful in 2000 to over 4,000 in 2006. The documentary leaves me as the viewer angry and almost filled with helplessness. I say helpless because not one of the principals in the financial crisis ended up being arrested, charged, or having to admit what they had done. The film basically presents the nonfictional, “shady” world of academic economists, and how greedy people can be if you can make something out of nothing not worrying about who gets hurt in the end.