School Papers

The a successful non-fiction book covering the financial

The
film Inside Job directed by Charles Ferguson, outlines what happened in the
years leading up to 2008 financial crisis, that made consumers feel confident
in purchasing property. The problem was that realtors and big banks were
signing off on mortgages that were subprime, just so their investors could make
a profit. Banks and Wall Street firms bundled and invested their money in ways
that guaranteed if these subprime mortgages failed, they would still make
money. Narrated by Matt Damon, the film includes interviews with people that
were either involved or watched the crisis occur, including former governor of
New York, Eliot Spitzer, Frederic Mishkin, Paul Volker, and many more. In
describing the crisis as it unfolded, the film also looks at conflicts of
interest in the financial sector, many of which suggests are not properly
disclosed. Another problem that occurred before and during the crisis was pressure
from the financial industry on the political process to avoid regulation, and
the ways that it is exerted. This also meant that financial regulators can be
hired within the financial sector upon leaving government and make millions.

The film ends by contending that despite recent financial regulations, the
underlying system has not changed; rather the remaining banks are only bigger,
while all the incentives remain the same, and not a single top executive has
been prosecuted for their role in the global financial meltdown.

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The
film The Big Short directed by Adam Mckay is a film adaptation of a successful
non-fiction book covering the financial crisis, involving celebrity stars
Christian Bale, Steve Carell, Ryan Gosling, and Brad Pitt. The story follows
the work of a hedge fund manager named Michael Burry (Christian Bale), who
recognizes that the U.S. housing market is driven by an asset bubble inflated
by high-risk loans. Burry recognized that he could establish a credit default
swap market that would allow him to short the housing market. However, his
clients grow angry when the banks and creditors he tries to convince about the
mortgage bubble argue that the housing market was stable, when really it was
falling quick. Meanwhile, Jared Vennett (Ryan Gosling) discovers Burry’s goal
to establish the credit default swap market. Mark Baum (Steve Carrell) becomes
interested in investing in the credit default swap market and recognizes that the
poorly structured CDO’s have received AAA ratings and are impairing the
mortgage crisis. After discovering the questionable innovation in the CDO
market that fueled massive risk in the markets, Baum concludes that the housing
bubble will ultimately lead to the collapse of the U.S. economy and bets big on
shorting the financial sector. Also, throughout the film two investors, Charlie
Geller (John Magaro) and Jamie Shipley (Finn Wittrock) seek the investment
advice of retired banker Ben Rickert (Brad Pitt) after they discover a paper
written by Vennett. After Shipley and Geller make a series of successful bets
against the housing market, Rickert grows angry that they have profited off the
downfall of the U.S economy. Burry, meanwhile, ends up producing nearly 500%
returns for investors who stayed with him through the duration of the financial
crisis. In the end, 5 trillion in pension money, real estate value, 401k,
savings and bonds had disappeared, 8 million people their lost jobs and 6
million lost their homes in the US. As for Charlie and Jamie, they attempted to
sue the ratings agencies but were laughed out of all law offices. Finally,
Burry contacted the government many times to see if anyone would interview him
about how he found out how he knew the system would collapse before anyone
else, no one ever returned his calls but, was audited four times and questioned
by FBI.

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