Inside Job (2010) dir. Charles H. Ferguson
First of all, why do all these other country's leaders speak such spectacular English? I feel like such a US centric loser sometimes. Ok, topic at hand.
How did the economic world crash in 2008?
As a movie, it was a little dry and you definitely have to pay attention. No multi-tasking during this one! But the complicated topic was presented very clearly and from what I read online, it seems to be a pretty fair/unbiased presentation of what happened.
I just finished it (#59. Watch 2/20 documentaries: CHECK!!) and have to say, wow, our country is in worse shape than I thought... The amount of money and negligence made, covered up, lied about, and stolen from people is pretty shocking. And the fact that after ALL THIS has gone down, and President Obama gives interviews saying the right things (more regulation, less conflict of interest, etc.) and then RE-HIRES all the bosses of those disastrous country-crushing companies to run our governmental financial system. Ouch.
The most insane point addressed in the movie is the credit default swap. I read about that in the book "The Big Short" (also highly recommended), but basically, in the normal world of real money, let's say you want to insure a house. Only you can insure your house against fire. But in the fake world of crazy banking rules, there's a mortgage loan on a house (actually a collection of many houses) and you -- as the bank lender -- can insure against default on the loan. But not just you-the-lender, ANYONE can. So if the mortgage is defaulted on, the lender gets an insurance pay out, but so might 100 OTHER people. And when the loans are based on absolutely nothing financially sound, pretty quickly the whole fake money world falls apart. Obviously, it's more complicated (and corrupt) than that, but what a mess. And terrible idea. But people got $485,000,000 paychecks off of it, which I guess lowers that moral bar.
Here's to hoping someone ethical and responsible gets in control of this before it's too late. (*I'm disappointed I went to Harvard under Larry Summers, what a sleazeball.*) I also understand now what it was so impossible to get a business loan in 2009.
If you want to learn more about "the economy" -- I hate hearing people blame everything on "the economy" but not understanding what that means exactly -- I would definitely recommend this movie and that book.
Anybody want to run for congress to fix this mess???





