Too Big to Fail - AIG

Eldora 2022-11-26 18:20:15

This film is more like Paulson's promotional film. In the midst of the financial tsunami, in the face of a greedy investment bank tycoon and a difficult Congress, he exhausted his energy and tried all kinds of rescue methods, and finally stabilized the almost collapsed market confidence. .

The chosen protagonists are all resembling real-life characters.

In the film, Buffett is like a wise man. The financial world is in chaos. He still agrees to accompany his grandchildren to eat fast food, and then makes an understatement, making profits and stabilizing market sentiment.

The one that best fits the title of the film is too big to be reached. It should be AIG (American International Group). As a world leader in insurance and financial services, its business involves property, life insurance, pension management services, financial services in more than 130 countries around the world. Services and asset management industries. Once it goes bankrupt, it will have an impact on the global economy.

Several world-class investment banks in the film, once one of them goes bankrupt, others closely related to its business will be affected or even go bankrupt. The most frightening thing is that the bankruptcy of an investment bank will dampen investors' trust in the market, and trust is the financial industry. the basis of existence.

Speaking of this, off-topic, I think in "A Brief History of Humanity", the biggest difference between human beings and animals is that human beings can create fiction, create illusions, create beliefs, and the beliefs of thousands of people in something unite them Up, such as empire, such as religion, and such as money mentioned here. From the very beginning of bartering, to now being able to pay by brushing your face, in the final analysis, it is the role of trust. Today, the real currency in the world is only 10% of the currency used, and the other 90% is virtual. Once trust ceases to exist, it is easy for investors to withdraw funds, run on banks, chaos, deflation, economic regression, and so on.

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Extended Reading

Too Big to Fail quotes

  • Richard Fuld: [on the housing crisis] You know, people act like we're crack dealers. Nobody put a gun to anybody's head and said, "Hey, nimrod, buy a house you can't afford, and you know what? While you're at it, put a line of credit on that baby and buy yourself a boat."

    Joe Gregory: [chuckles] You heard anything from Buffett?

    Erin Callan: He's asking for preferred shares at 40, with a dividend of nine percent.

    Richard Fuld: [annoyed] We were just at 66. What the fuck?

    Joe Gregory: Maybe it's just an opening gambit, Dick.

    Richard Fuld: Sounds more like a goddamn insult!

    Erin Callan: Dick, we're at 36 right now. We haven't been anywhere near 66 in months. The markets like Buffett. His name will push the price up overnight.

    Richard Fuld: You know, I don't care who he is. I am not spending $360 million a year for the pleasure of doing business with him. Real estate will come back.

    Joe Gregory: Koreans have been sniffing around.

    Richard Fuld: There you go. And they won't steal us blind. I've seen this before: CEOs panic and they sell out cheap. Right now, the Street's running around with its hair on fire, but the storm always passes. We stand strong, and on the other side, we'll eat Goldman's lunch.

    Erin Callan: So what do we do about Buffett?

    Richard Fuld: Screw Warren Buffett.

  • Ben Bernanke: [Having breakfast with Henry Paulson] Lehman's down another 10%.

    Henry Paulson: You are not gonna let me get down a single bite, are you?

    Ben Bernanke: This is why I have oatmeal.