Afterthe Savings and loan’Inside Job’provides a comprehensive analysis of the global financial crisis of 2008, whichcaused a $20 trillion of losses, caused millions of people to lose their jobsand homes. The film starts by discussing the rise of the financial market andhow the government dealt with it. It was interesting to find out that thegovernment did not have any normal regulation against the firms, letting themengage in fraud activities that cost millions and billions of dollars.
Forexample, Credit Suisse helped funnel money for Iran’s nuclear program but theycompletely erased the traces of anything related to Iran in their reports.Another example is Citibank that earned 100 million $ out of Mexican drugbusiness. It was very surprising for me to see, as I always thought of U.
Seconomy as the most regulated one where any kind of fraud would be impossible.Turns out, there actually has been a time when financial firms were able tothis without getting caught, which also talks about the inefficiency of theat-that-time government.Also, it wasinteresting to find out about derivatives, that also played a big role instarting the financial crisis. After the Savings and loans crisis whichaffected the taxpayers, derivatives became quite popular.
After this, subprimelanding started that was very risky, and with which one investor landed moneyto the other investor, who because ofsome unknown rating practices, believed the investment was safe. So, lenderswere signing up for mortgages without knowing about the risk, because after themortgages were packed, the risk was becoming disguised. It was crazy that theresulting products were rated as safe as the U.
S gov. bonds. Anotherinteresting point was how bank executives were making millions of dollars evenwhen the banks were being declared as failed.I also likedhow the film ended rather realistic by saying that although there areregulation, nothing has changed, and not a single executive has been punishedfor their wrongdoing.s crisis which affected the taxpayers, derivatives becamequite popular.