Essay about The Inside Job

2074 Words 9 Pages
The film Inside Job offers in-depth evidence of the complex relationship between government and business by showing how business under the auspice of capitalism and government under the mantle of democracy is collusive and incestuous in their ultimate pursuit of profit and power. The film clearly captures the systemic corruption of the United States by greedy and morally unbalanced industry leaders and their cohorts who engineered a financial catastrophe in 2008 not seen since the great depression. The film’s writer and director Charles Ferguson contends that the collapse of the financial industry could have been prevented had there been more regulation of Wall Street. He clearly establishes his line of reasoning through a series of …show more content…
The Reagan administration deregulated savings and loan companies in 1982, allowing them to make risky investments with their clients’ money, most of the savings and loan companies failed as a result these high-risk investments and caused many Americans to lose their life savings. Before deregulation, banks only sold mortgages to customers who were good risks and could pay them back over time. But deregulation created a platform for uncertain financial instruments and promoted high-risk mortgages that were packaged together and resold as collateralized debt obligations (CDOs) to speculative investors. Most of the investors did not understand the complexities of CDOs but knew they would generate huge short-term profits. By September 10th, 2008, the rampant greed on Wall Street had hit a bulwark; its fake cloak of honor and trust, and sacredness of obligation to put customers first was removed and its true form was apparent. The Glass-Steagall Act, also known as the Banking Act of 1933 had been enacted to prohibit collusion between investment and commercial banks, but the passing of the Gramm-Leach-Bliley Act of 1999 made significant changes to Glass-Steagall and repealed its restrictions on bank and securities-firm affiliation. The new law sought to modernize the financial industry by removing the very barriers that Glass-Steagall had erected to curb the greed of rogue capitalist bankers and to contain the moral hazard that engulfed

Related Documents