Inside Job Extra Credit
First of all, I think it is extremely comical that man with a net worth of $65 million (Matt Damon) is going to narrate a film that claims that the smartest men in the world are too greedy and are over-compensated. I do not believe I have ever seen such a closed minded, uneducated propagandas film before.
This film was really just a way to bash Wall Street. It was not very viable and many “facts” were skewed. It was made in a very intelligent way though, to make what they were saying seem like they were good facts and statistics. One thing that really stood out when I was watching was when they were talking about the Bush tax cuts ...view middle of the document...
They promoted very little down payments and also pushed for lenders to give mortgages to first time buyers, no matter how stable their financial situation was. So government intervened and they pushed for these risky mortgages to be given out. Even the government controlled Fannie Mae and Freddie Mac would guarantee a lot of these risky mortgages. It does not take being the writer of the script for Inside Job, with an agenda to realize that this is the definition of regulation. Government intervention and influence over the private business sector is exactly what regulation is. So the government REGULATIONS were that these lenders should give out mortgage loans to people who might not be able to afford them. But based on that, why is Wall Street blamed for the crisis?
Another question that I have always wondered about this situation is why are the individuals not held accountable? I know that I personally am a very responsible person. So I cannot imagine buying a $1 million dollar home if I am only making $50,000 in a year. But PEOPLE did that. Yet still, this film apparently thinks that there is nothing wrong with that. It is ok for someone to try and buy something, ask for a loan when they know that they will never be able to afford to pay it back.
According to this film, the entire market crash and housing crisis was caused solely by de-regulation. They said that the Fed and SEC and other regulatory agencies were not doing their jobs and just allowing all the big Wall Street banks run freely. It said periodically how the banks were being irresponsible with the securities in which they were selling and trading.
It also commented on how negligent the banks were with all of the bonuses and big salaries they were giving their employees and top executives. They thought that these people should have been forced by the government to give back a lot of their earnings. They even commented on how bad it was that banks, such as Morgan Stanley, have grown as much as they have. About how they used to only employ people in the hundreds, and now they employ over fifty thousand people.
First of all, how are the banks negligent to be giving out high salaries and bonuses to deserving employees and executives? Financial institutions were making records amounts of money at this point. The people who were responsible for making this money that trickled down throughout the entire country and spread more wealth then has ever been consumed in this country, were not entitled to receive high salaries and bonuses? That is absolutely ABSURD! Does anyone say that Bill Gates is not entitled to the money that he makes? No, and he is entitled to be worth what he is. He contributes to society, as do these bankers. They create money, and when they were doing this, they made more of it. People do not even question why a man like Matt Damon, who contributes NOTHING to society, is worth so much money.
These Wall Street employees and executives...