The synopsis below may give away important plot points. Synopsis The subject of Inside Job is the global financial crisis of It features research and extensive interviews with financiers, politicians, journalists, and academics. The film follows a narrative that is split into five parts.
Synopsis[ edit ] The documentary is split into five parts. It begins by examining how Iceland was highly deregulated in and the privatization of its banks.
How We Got Here[ edit ] The American financial industry was regulated from tofollowed by a long period of deregulation. In the late s, the financial sector had consolidated into a few giant firms. In the s, derivatives became popular in the industry and added instability. Efforts to regulate derivatives were thwarted by the Commodity Futures Modernization Act ofbacked by several key officials.
Investment banks bundled mortgages with other loans and debts into collateralized debt obligations CDOswhich they sold to investors. Subprime loans led to predatory lending. Many home owners were given loans they could never repay. The credit default swap CDSwas akin to an insurance policy.
Numerous CDOs were backed by subprime mortgages.
Goldman also bet against the low-value CDOs, telling investors they were high-quality. The three biggest ratings agencies contributed to the problem. AAA-rated instruments rocketed from a mere handful in to over 4, in The Crisis[ edit ] The market for CDOs collapsed and investment banks were left with hundreds of billions of dollars in loans, CDOs, and real estate they could not unload.
In September, the federal government took over Fannie Mae and Freddie Macwhich had been on the brink of collapse. Two days later, Lehman Brothers collapsed. Merrill Lynch, on the edge of collapse, was acquired by Bank of America.
Henry Paulson and Timothy Geithner decided that Lehman must go into bankruptcy, which resulted in a collapse of the commercial paper market.
On September 17, the insolvent AIG was taken over by the government. The global financial system became paralyzed. On October 3,President George W. Bush signed the Troubled Asset Relief Programbut global stock markets continued to fall.
By DecemberGM and Chrysler also faced bankruptcy. Foreclosures in the U.
Accountability[ edit ] Top executives of the insolvent companies walked away with their personal fortunes intact. The executives had hand-picked their boards of directorswhich handed out billions in bonuses after the government bailout.
The major banks grew in power and doubled anti-reform efforts. Academic economists had for decades advocated for deregulation and helped shape U.
They still opposed reform after the crisis. Many of these economists had conflicts of interest, collecting sums as consultants to companies and other groups involved in the financial crisis.
Geithner became Treasury Secretary.
Bernanke was reappointed Fed Chair. European nations imposed strict regulations on bank compensation, but the U. Roger Ebert described the film as "an angry, well-argued documentary about how the American housing industry set out deliberately to defraud the ordinary American investor".
Ferguson has summoned the scourging moral force of a pulpit-shaking sermon. That he delivers it with rigor, restraint and good humor makes his case all the more devastating". He went on to say that it was obviously influenced by Michael Mooredescribing it as "a Moore film with the gags and stunts removed".The film Inside Job brilliantly exposes the corruption in US banking that led to the crash.
We ask four bankers for their verdict on this damning indictment of their world. 'Inside Job' provides a comprehensive analysis of the global financial crisis of , which at a cost over $20 trillion, caused millions of people to lose their jobs and homes in the worst recession since the Great Depression, and nearly resulted in a global financial collapse.
Inside Job clearly catches some of the anti-banker mood, and the public is quite right to be outraged at how banks refinanced at the taxpayers' expense are paying outsized bonuses.
Oct 13, · This process is explained in Charles Ferguson's “Inside Job,” an angry, well-argued documentary about how the American financial industry set out deliberately to defraud the ordinary American investor.4/4. Oct 13, · This process is explained in Charles Ferguson's “Inside Job,” an angry, well-argued documentary about how the American financial industry set out deliberately to defraud the ordinary American investor.4/4.
The Inside Job - A must read summary. Published on August 5, ; This documentary is based on five main parts. 1.) The Foundation The movie "Inside Job" focused on the corrupt actions of.