Inside Job Documentary Essay Example

increased fear. However, a transparent, compartmentalized, properly capitalized, and policed financial system can be established to mitigate large-scale problems. Bankers should not accumulate enormous profits in prosperous times only to lose it when crises arise every few years. A robust financial system similar to a sturdy internet or electrical network may be created that enables its expansion without the risk of collapse. Although failure cannot be fully eliminated, it may be minimized by building a less prone-to-collapse system without government assistance; this constitutes the most terrifying aspect of the financial crisis. Even participants, experts and watchdogs were unable to fully comprehend the complex system before or after the crisis occurred; connecting dots was inconsistent making unclear how success could become normative.Regrettably, the film highlights how our fundamental systems are becoming more intricate, and we're not getting smarter or better equipped to face the dangers that we know require preparation. Nevertheless, there are positives and negatives in the movie. The well-known speakers discussing their perspectives on the financial crisis and witnesses giving testimony about bankers' corrupt practices before Congress were appreciated. It brought attention to lobbying as a significant issue that can result in inadequate regulation and threaten the whole system. However, the movie's primary flaw is its oversimplified method of presenting only 10% of a complex picture as though it were 100%, exemplified by linking deregulation to causing the economic crisis. Although factual information like banks wanting to be Too Big To Fail and increased criminal activity within finance since deregulation began in 1980s are presented effectively, some facts require further explanation due to oversimplification. For instance, despite making more money after the crisis, Goldman

Sachs employees earn an average wage of $600,000; AIG paid Goldman Sachs $13 billion from taxpayer funds while Joe Cassano earned $315 million after AIG took at least $85 billion from taxpayers.Despite the presence of and their contents, the following text can beand unified:
The information presented in "Inside Job" contains inaccuracies, including Dick Fuld's earnings being less than $310 million and the belief that Lehman Brothers' and AIG's collapse triggered the 2008 financial crisis. Instead, Ralph Cioffi and Matthew Tannin's Bear Stearns hedge funds' implosion in the early 90s set off a chain reaction leading to the crisis. Wall Street experts use complicated computerized techniques involving derivatives and credit swaps to profit from bad debt while bankrupting investors and companies. Allowing financial institutions to engage in self-trading is a major mistake as many large trading banks gamble against their own clients for profits, promoting mortgages aggressively to those who cannot afford them. Mortgages are bundled up as assets despite their worthlessness, secured by gambling against them by those who generate these loans for profit even when they fail. Kristin Davis provides valuable insights on-camera in "Inside Job", revealing how sex workers charging over $1k an hour along with cocaine use were commonplace among valued clients and traders alike, accepted as part of company culture on Wall Street today without moral justification.There is much to criticize about Wall Street, including its pay, culture, and the types of people it attracts. While many were aware of the housing bubble forming, few understood the underlying issue: subprime mortgages within bonds that had been divided into tranches. These tranches were evaluated using an inaccurate correlation variable which

many banks had purchased insurance from AIG to protect against. However, AIG had mispriced its correlation and would not be able to pay off debts in a market crash. This could halt the shadow market used to fund financial entities and cause a global economic crash due to the fragility of the modern financial system. Notably, even those with incentives for accurate evaluation such as journalists, hedge funds, independent investors, academics, regulators and traders were mistaken in their evaluations. President Barack Obama's choice of individuals involved in creating this crisis also exemplified this mistake. Despite observing this situation and reading news articles my stance on U.S markets remains unchanged.