The film starts with Icelandic analysis of the situation in the past two years until the emergence of the economic crisis, mainly including the environment and the economy. Iceland made very wrong decisions in these two areas, which eventually led to the tragedy. Environment, the government has allowed the United States and other countries to build environmentally-destroying Diet and hydropower resource equipment in Iceland; secondly, the economy, the three local banks have provided loans ten times the total Icelandic economy. What makes people feel strange is that the audit did not find any problems during this period. Within six months after the economic crisis, Iceland's unemployment rate tripled.
After explaining these circumstances, the director threw us a question about what made this originally comfortable and livable country like this overnight. The film is divided into five parts to explain it.
Part I How to got here. The
film directly points to the loopholes in the financial market and the cause of the outbreak of the financial crisis, subprime loans. When investment banks use citizens’ savings deposits for risky investments, when market regulators lack the necessary supervision of financial derivatives, when investment banks rely solely on the company’s endless false accounts to judge the value of the company and make investments. The formation of CDO, apart from exposing the greedy faces of financial professionals and bringing them more profiteering, seems to have not really promoted economic growth.
PART II Bubble.
In the beautiful fantasy of the American Dream, everyone shares the ultimate pleasure brought by the economic bubble in the big cake of finance, and loses themselves. 40% of the profits in the United States come from the financial industry, and everyone loses their minds in the face of huge benefits. Like AIG, the world's largest insurance company used 3.5 billion yuan in dividends instead of resisting risks, which eventually led to its bankruptcy and liquidation. In such a hotbed of stupid people with a lot of money, a large amount of business entertainment expenses for prostitution and drugs have spawned, which accounted for 5% of the entire financial derivatives. The elites of Wall Street are driven by huge desires and money. The dark side is magnified infinitely. In the entire financial crisis, it is undoubtedly the rating agencies that have contributed to the flames. Under the temptation of more than one billion benefits, the CDO of worthless securities has been given a AAA rating. And those investment banks like Goldman Sachs, in violation of the professional norms of striving for more benefits for customers, follow the rules of the money-first game, that is, the more customers lose, the more they earn. Professional ethics is worthless in the narrowly understood American dream of the supremacy of money.
PART III Crisis. The
entire food chain was broken due to the redemption of real estate in 2008 and the collapse of the CDO. Lenders can no longer sell their debts to investment banks. The irony is that Bear Stearns still maintained the evaluation of A2 a month before the bankruptcy, while Lehman and AIG were A2 and AA respectively. The outbreak of the economic crisis has brought the unemployment rate in the United States as high as 10%. For China, the severe setback is also self-evident. The manufacturing industry is facing a large number of layoffs, and those at the bottom of the society who rely on labor to support themselves face unemployment and face hardship.
PART IV Responsible. The
whole crisis made us realize that it is not the financial predators who pay for the crisis, but the poorest people at the bottom of society, who bear more. Executives in the financial industry are still sitting on wealth and using their political influence to escape more punishments and more taxes. It seems that there is no other way to condemn them but social condemnation. This not only involves the ambiguous relationship between politics and economy, but at the same time, more academic accusations and interests are swayed by interests.
How bad is PART V? This part of the film focuses on the impact of the crisis on the American economy, and is mainly divided into three parts. First, the domestic manufacturing industry has gradually weakened due to lower labor costs in developing countries, and has turned to high-end innovation and technology development. However, the development of high-end technology is inseparable from universal higher education. This is also the second issue. In the United States, where tuition fees are increasing year by year, higher education seems to be a luxury. success? The third piece focuses on the increasingly serious gap between the rich and the poor that cannot be ignored in the United States. A new term used by Professor Lang Xianping some time ago is class consolidation. The proportion of the middle class in the entire society is declining, and people living at the bottom are encouraged to use it. It is getting easier to get loans to satisfy their own consumption, and what awaits them is not the end of the repayment.
The introspection brought to us by the economic crisis is far-reaching. When the economic growth of the society does not rely on the development of the real economy and technological innovation, it only looks at a piece of figure created by the financial industry; when the bottom-line people who work steadily are responsible for the entire economic crisis Pay the bill instead of the high-level earners of financial institutions; when the entire society is in the consumer finance industry, the economic illusion of prosperity has turned into a speculative fanaticism for the whole people; when the financial kidnap politics, the president always takes advantage in the election campaign. Change it as a means to obtain votes, but when it came to power, it was pressured and unable to change; when the regulatory agencies and audit institutions were confused by the erosion of interests, the imperfect legal system could not protect the legitimate rights and interests of investors; when the glamorous financial industry became A hotbed of drugs and sexual services. This is not just a problem facing the United States. It is a problem that every country will encounter in the course of economic development or recession. Face it and solve it so that the financial crisis will not be like an intermittent heart attack. The normal order of the country!
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