Too Big to Fail movie review
1 After the subprime mortgage crisis broke out, after the first of the five major investment banks on Wall Street collapsed, the stock price of Lehman Brothers plummeted, and the market panic spread.
Secretary of the Treasury Paulson joined forces, the chairman of the Federal Reserve, the chairman of the American Savings Insurance, and Morgan, Goldman Sachs, and Merrill Lynch, who survived on Wall Street, to avoid the American people's savings and pension investment, and the American economy to collapse, and work together to resolve the crisis.
The chairman of Lehman Brothers was headstrong, couldn't understand the situation, missed the subscription of Buffett, the Koreans, and the British, stubbornly believed that the company was doing well and didn't want to sell the company at a low price, resulting in bankruptcy.
Merrill Lynch accepted the subscription, was merged, and avoided bankruptcy.
Banks such as Morgan, Goldman Sachs, and Citi accepted the government's aid program, and $125 billion was injected into these banks.
The market released risks after a long period of time and gradually recovered in 2009.
2 The last words of the female adviser to the Treasury Secretary are very interesting, because the wrong decision of the Wall Street investment bank led to the crisis, and now the government provides them with 125 billion in cash assistance, but cannot interfere with how they use the money, because they are afraid that they will refuse?
Yes, if the last remaining bank collapses again, the entire US economy collapses. This is the meaning of too big to fail. In order to avoid more catastrophic consequences, it is relatively better to choose to keep investment banks. The significance of Wall Street is too important to the United States.
3 The follow-up government should take measures against these investment banks that are too big to fail, and cannot let the investment banks mess around and put the fate of the United States in the hands of the investment banks. Either strengthen the SEC's supervision of investment banks, or simply dismantle the trust group directly like Theodore Roosevelt, and dismantle several giants such as Morgan and Goldman Sachs into hundreds of small companies.
The fundamental is still in the system. On the one hand, we must respect the laws of the market, and on the other hand, we must strengthen government supervision and intervention to ensure sustainable economic development.
4 Today, after a lapse of 12 years, the United States has experienced another economic crisis due to crude oil and the epidemic. The unemployment rate reached 10% in 2008, and the unemployment rate in March 2020 was 4.4%.
This time, the Fed came up with a big move, and directly zero interest rates. Then crazy QE. Trillions of dollars flooded into the market to save the market.
Do you drink poison to quench your thirst? This will inevitably lead to a depreciation of the dollar. But it will stabilize the market in the short term.
What is certain is that the epidemic in the United States is still on the rise, and the momentum of economic downturn will continue. Stabilized in the short term, bearish in the medium term. If the epidemic is under control after half a year and the risk of depreciation of the dollar begins to be released, then it is a good time to buy blue-chip real estate and other assets.
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