The Inside Job is a documentary narrated by Charles Ferguson that gives an analysis of the main events that led to the collapse of Wall Street economy (Riley 3). This documentary focuses on the roles played by both the government and private sector in accelerating the financial meltdown that cost millions of people their jobs, homes, and savings (Marshall 13).
The banking institution forms one of the major private sectors that bear the blame of the financial crisis in the film “The Inside Job”. The film provided a wide range of view on how corrupt the US banking institutions are that led to the 2008 crash (The Guardina 1). The high levels of corruption portrayed by bosses managing big banks in the country made them work for self-gain without any public interest. As the film narrates, Frederic Mishkin, could not bother looking for any solution despite the warning that the economy was about to crash. Moreover, the Royal Bank of Scotland boss, Sir Fred Goodwin, was a disgraced manager who misused many public funds and went unpunished. In addition, banking institutions over-paid their employees who performed little tasks. Risk managers in the banking institutions also failed to inform the authority about the status of their banks. Some stated that by giving true information about their banks, it would cut down their multi-billion dollar profits. The government could also not challenge the trading shares that generated billions of profits (Bullard 35-40).
On the other hand, banks contributed to the financial crash as shown in the film as shown by the high level of consumption by ordinary people that increased country debts. According to the film, bankers contributed to the collapse because they invested too much to make their living happy but could not afford to pay back their loans. Many bank debts, credit card debts, and personal loans were recorded during this period and banks could not stop offering loans to individuals and institutions. Moreover, the accounting firms never performed their roles effectively (Hartmann 20-22). These firms had the responsibility of monitoring bank accounts and giving recommendations to the government on the bank’s ability to trade. Many banks bribed such accounting firms in order to favor them, a step that created room for more debts in the country (Marshall 12).
The labor department under the government sector contributed to the economic fall of Wall Street in the film “The Inside Job”. The film director portrayed key people in the government from the labor ministry whom he termed as corporate criminals and political corrupt leaders who hijacked the American economy (Board of Governors of the Federal Reserve System 1-2). The ministry announced creating more than 10,000 job opportunities and increase in the unemployment rate but these were just virtual figures (Hellenic Statistical Authority 15). Moreover, the film criticizes president Obama’s government for failing to carry out reforms in the labor department after becoming the president. Ferguson also terms president Obama as a selfish person who bailed out the America’s public sector by giving many cash to his friend’s companies (Ferguson). In addition, some of the known criminals who contributed to the 2008 financial crisis still go unpunished. In the film, Ferguson explained how senior people in the labor department lobed the government more cash to start their own private firms after leaving the government sector.
The accountability of these two sectors would have saved America the shame of being in an economic crash. Firstly, the banking sector could have ensured all its employees perform their duties and anyone suspected of misusing funds face the law. In addition, the government should have ensured all banks in the country record their source of profits and their financial status in order to avoid debts. Secondly, the government sector should have performed a better analysis of the labor department in order to ensure proper distribution of salaries to all civil servants. Moreover, the government should hold all people accountable for the crash and prosecute them in order to act as a lesson to others.
Works cited
Board of Governors of the Federal Reserve System. press release, March 20, 2013, web. http://www.federalreserve.gov/
newsevents/press/monetary/20130320a.htm.
Bullard, James Neely. "Systemic Risk and the Financial Crisis: A Primer." Federal Reserve Bank of St. Louis Review 1 Sept. 2009: 30-51. Print.
Dir. Charles Ferguson. Inside job.. Perf. 10. Sony, 2010. HD-DVD.
Hartmann, P. Currency competition and foreign exchange markets – The dollar, the yen
and the euro, Cambridge University Press. 2011
" Inside Job: how bankers caused the financial crisis | Film | The Guardian ."Latest news, world news, sport and comment from the Guardian | theguardian.com | The Guardian . N.p., n.d. Web. 1 Oct. 2013. <http://www.theguardian.com/film/2011/feb/17/inside-job-financial-crisis-bankers-verdicts>.
""Inside Job" Director Charles Ferguson: Where Are the Criminal Prosecutions for Financial Crisis? | Democracy Now!."Democracy Now!. N.p., n.d. Web. 1 Oct. 2013. <http://www.democracynow.org/2012/6/1/i
Marshall, John. The financial crisis in the US: key events, causes and responses. RESEARCH PAPER 09/34. 2009.
Riley, Felix. The inside job. London: Michael Joseph, 2012. Print.
