role of Wall Street in the 2008 financial crash
- How does this film relate to economics? Please explain in detail. Use evidence from the film to support your connections
Economics is the branch of knowledge concerned with the production, consumption, and transfer of wealth. In "Inside Job" economics relate because the whole film was discussing about money and on all the debts and crisis' we had.
- What is the bias of this film? Does this film present objective information?
The bias of this film is that the bankers would refuse to be interviewed for the film. This film does present objective information
- Write a synopsis of the film.
The film "Inside Job" is simply about the global financial crisis that occurred in 2008 which the U.S. was put into major debt and many people lost their jobs/homes and some entire life savings. Many people were interviewed in this film about the events that happened in 2008.
- Write an opinion of the film (yours). Was it informative? What did you learn? What questions do you still have? Did you like it or not? Agree or disagree with it? Was it intriguing? Did you do any further research after watching it?
In my opinion the film was very informative. I learned a lot for example, I learned what leverage was, learned the roles mortgage payments and what happend if you don't pay it, and I also learned a fun fact which is down below. I actually enjoyed this film it was very interesting and I agree with it, I was surprised to learn all that I did. I did a little bit of research after watching it.
"Regulalry paid prostitutes to entertain traders"
Producers: Charles Ferguson, Audrey Marrs
Production company: Representational pictures
Distribution company: Sony pictures classic
Filming locations: Iceland. China. England UK. Florida USA. France. Singapore. USA. Wall Street, Manhattan, New York City, New York, USA. White House- 1600 Pennsylvania Avenue NW, Washington, distrcict of Columbia, USA.
1. What are the riskiest loans called? Why did investment bankers prefer them?
The riskiest loans are called subprime loans, investment bankers preferred them because when thousand of subprime loans were combined to create CDOs many still received AAA ratings.
2. What is leverage and what did Henry Paulson do to help with leveraging?
Leverage is the ratio between borrowed money and the banks own money, the more the banks borrowed the higher the leverage. Henry Paulson helped lobby the securities and exchange commission to relax limits on leverage allowing the banks to increase their borrowing.