Inside Job Analytical Report Essay
Memorandum of Transmittal
To: Sir Azmat Ahmad Ansari From: Syeda Benazir Burhan Date: 28/2/2013 Subject: Analytical Report on the Documentary 'Inside Job' In response to your request of 14/2/2013, I have analyzed the documentary Inside job. I'm pleased to present enclosed report, which summarizes the financial break down in the year 2008, described in the documentary. Based on my analysis, the subject of Inside Job is the global financial crisis of 2008. It features research and extensive interviews with financiers, politicians, journalists, and academics. The film follows a narrative that is split into five parts. The film focuses on changes in the financial industry in the decade …show more content…
After the Depression, there was 40 years of economic growth and not a single financial crisis. Industries were tightly regulated. Most banks were small local businesses. They were prohibited from speculating with depositors’ savings. Investment banks handle stocks and had small investment partnerships. Partners front money so they shy away from big risks and watch the market carefully.
The financial industry exploded and the banks went public giving them huge amounts of money to invest. Due to this, partnerships become obsolete. People on Wall St started getting rich. From 1978 to 2008, a banker’s average salary went from 47 to 100K. But, for everyone else, it started at 45 and went up 3K during that same span of time.
1981 Reagan chooses Don Regan as Treasury Secretary (Merrill Lynch CEO). With support of his party, economists, & financial lobbyists, Reagan began to push for deregulation. George Soros uses the metaphor of an oil tanker to describe the financial sector at this point. "It’s enormous. Compartments (regulation) that kept the oil from sloshin’ around and capsizing the tanker have been taken away. The tanker now has a much greater probability of sinking, taking with it its precious cargo."
Savings & Loan companies were successfully deregulated. Without oversight, they began making risky investments. Example: Charles Keating is one S&L financier (now the most well-known).