Tuesday, November 6, 2012

Exploration 8

After seeing this film, it truly helped me see how much corruption and truly how much greed occurs within the top 1 percent of the U.S. Inside Job helped explain how banks and investment firms twisted numbers in order to make huge short term profits regardless of the long term consequences. I find it truly frustrating how crazy some of these firms were in the actions they did. They caused the U.S to be in the state that we are today. And all along they knew what they had done. They were warned about the consequences multiple times and throughout this time while executives pocketed hundreds of millions for themselves they completely forgot about the effects that this would have on the economy. I find it almost unbelievable that someone can seek more money after already having millions already. Its as if no amount of money is enough. As executives and firms profited off of huge CDO's the rest of the country went into a spending frenzy. People who did not have enough money to buy a house began buying houses which many people new they couldn't afford. But due to the decrease in regulation banks didn't care and continued to loan millions of dollars to customers who could probably never be able to pay the debt back. As people became unable to pay for properties purchased on little to no credit the rest of the country began to collapse and foreclosures began occurring all over the country. I find it crazy that the government allowed such stupid and unreliable loans to be given out. These huge firms gave themselves immense bonuses and avoided taxation as much as possible. These are the  scum that lead our country to what we have become today. I believe that our country should learn from this crisis and as we elect our next president we should take in account what some of the big investment banking firms want. Less taxes and less regulation. We cant make the same mistake again. One line that truly struck me was how Frank Partnoy said: You're gonna make an extra $2 million a year, or $10 million a year for putting your financial institution at risk. Someone else pays the bill, you don't. Would you make that bet? Most people on Wall Street said, 'Sure, I'd make that bet.' This sense of thought truly shows how little those who worked on wallstreet cared about the future of our country. Greed overcame them and led to problems that we are trying to solve today.

Link to good source about crisis

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