Inside Job

Topics: Subprime mortgage crisis, Great Depression, Crisis Pages: 2 (466 words) Published: March 18, 2013
Inside Job

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. 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...
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