Inside Job

[Storm]

I watched this most excellent movie last night.  It is available on DVD/Bluray from Netflix (not on Instant streaming yet).  It is about the 2008 meltdown and what led to it.  A very thorough and well documented movie, it does not have a liberal or conservative political slant.  I found it highlighted the failures in many democratic and republican adminstrations, beginning with Reagan, Clinton, GW Bush, and Obama.

Here is a trailer:

http://www.imdb.com/video/imdb/vi751502873/

[smurff]

Dominique Strauss-Kahn also appears in Inside Job.    He's a sane person there (knowledgeable about the world of finance) in contrast to his more recent (alleged) activities.

It's a good film.

[Jan Van]

Yeah, I got it as well last week. Watched it a couple of days ago, and then watched some of the cut scenes. Loved it. Also made me want to get the Satyajit Das book Traders, Guns and Money. I still have it. Haven't send it back yet because I think I want to watch it again. And I have to finish some more cut scenes.

One interesting observation was the view that the academic economics profession is largely corrupted, analogous to regulatory capture. Lots of academic economics are working for big corporations, making oodles of money and having their view skewed. His interview with the John Campbell, chairman of the Harvard economics department was quite interesting...

btw, i was quoting from the movie a couple of days ago, here... 

[Jan Van]

Dominique Strauss-Kahn also appears in Inside Job.    He's a sane person there (knowledgeable about the world of finance) in contrast to his more recent (alleged) activities.

Yes, that struck me too! Almost felt bad for the guy. Imagine that, slipping on a bar of soap when you walk out of the bathroom!

btw. The movie website is here

[Storm]

Not to be a conspiracy nut, but I have noticed a pattern when it comes to financial corruption - anyone that seems reasonable and suggests that something criminal is going on is somehow accused of commiting crimes themselves.  Look at Elliot Spitzer - I heard he was about to bring charges against some of the banks involved in the meltdown, and while I haven't heard anything directly, it is very possible that DSK knew something he shouldn't have known about the Greek and PIIGS situation.

[Tortoise]

I watched this most excellent movie last night.  It is available on DVD/Bluray from Netflix (not on Instant streaming yet).  It is about the 2008 meltdown and what led to it.  A very thorough and well documented movie, it does not have a liberal or conservative political slant.  I found it highlighted the failures in many democratic and republican adminstrations, beginning with Reagan, Clinton, GW Bush, and Obama.

I watched the documentary a few weeks ago. While I was pleasantly surprised that the film pointed out flaws in both Republican and Democratic administrations, I wouldn't go quite so far as to say the documentary was free of slant.

The slant I'm referring to is not necessarily pro-Democratic or pro-Republican, but rather pro-government. Government actions were only denounced in the documentary insofar as they (a) were driven by cozy relationships with the private sector corporations and (b) "didn't do enough" to prevent the various behaviors that led to the meltdown.

From what I recall, the Federal Reserve System was hardly mentioned at all in the film. A documentary about the 2008 financial collapse that completely leaves out any discussion of the Fed and its fundamental structural role in facilitating excessive lending and speculation via its manipulation of interest rates is not completely intellectually honest. It's a rather big piece of the puzzle to completely leave out, is it not?

There were certainly numerous factors contributing to the 2008 financial collapse, but the Fed was undoubtedly one of them. It should have at least been discussed in Inside Job. The fact that the topic was completely ignored suggests to me that the film is far from slant-free.

[smurff]

I think there are many international governmental big wigs who know secrets about the Portugal, Ireland, Italy, Greek, and Spain financial situations.  That kind of secrecy is, and has been, the nature of government since the beginning of civilization.  Both Spitzer and DSK, however, have sordid histories that each has acknowledged (DSK has said through his lawyer that his alleged attack on the Sofitel housekeeper was "consensual," plus there was that incident with his subordinate employee that was investigated by the IMF, plus...).  These types of histories make them easy targets for being taken down in all sorts of ways, if any group of bigger wigs (government or otherwise) has the notion do so.  They dig their own graves; by the time they jump full in, they get covered with their own dirt. 

Still, it's interesting what DSK said in Inside Job.  The bonus features of the DVD are as interesting at the documentary itself, and there is a bonus segment devoted to him speaking.  And it was really satisfying (in a Schadenfreude sort of way) to see the econ professor squirm as he was asked questions about his consultant duties and income from the financial  industry as well as his accountability for giving his clients cover for things that led to the 2008 crisis.

[Storm]

I watched the documentary a few weeks ago. While I was pleasantly surprised that the film pointed out flaws in both Republican and Democratic administrations, I wouldn't go quite so far as to say the documentary was free of slant.

The slant I'm referring to is not necessarily pro-Democratic or pro-Republican, but rather pro-government. Government actions were only denounced in the documentary insofar as they (a) were driven by cozy relationships with the private sector corporations and (b) "didn't do enough" to prevent the various behaviors that led to the meltdown.

From what I recall, the Federal Reserve System was hardly mentioned at all in the film. A documentary about the 2008 financial collapse that completely leaves out any discussion of the Fed and its fundamental structural role in facilitating excessive lending and speculation via its manipulation of interest rates is not completely intellectually honest. It's a rather big piece of the puzzle to completely leave out, is it not?

There were certainly numerous factors contributing to the 2008 financial collapse, but the Fed was undoubtedly one of them. It should have at least been discussed in Inside Job. The fact that the topic was completely ignored suggests to me that the film is far from slant-free.

To be fair, although they probably didn't focus enough on fractional reserve banking and how this all really started around the early 1900s, they did talk a little bit about Ben Bernanke, and showed one or two of his choice quotes - the one that comes to mind is when he said something like he couldn't imagine something that would cause housing to fall in value nationwide at the same time.  I found this to be a complete fabrication, because if he indeed was a student of the great depression he would have known that housing did fall in value nationwide at the same time.

To be honest, I think the film was designed for more of a mainstream audience.  I understand why libertarians might want to abolish the Fed, but that thinking is very much outside of mainstream America.  A good first step would be to stop bailing out failing financial institutions.  Let's work on breaking up TBTF first and worry about the Fed later.  Baby steps, or pick your battles, as it were... 

[Jan Van]

From what I recall, the Federal Reserve System was hardly mentioned at all in the film. A documentary about the 2008 financial collapse that completely leaves out any discussion of the Fed and its fundamental structural role in facilitating excessive lending and speculation via its manipulation of interest rates is not completely intellectually honest. It's a rather big piece of the puzzle to completely leave out, is it not?

And then there also was the interview with Frederic Mishkin, fed governor. He left in May 2008 because he had to revise his textbook. Hmmm. I would think this would have been THE time for types like that to, eh, govern. Instead, he figured revising his textbook was more important...
Also, Robert Gnaizda was complaining about the Fed. He specifically mentioned mortgage related excesses to the Fed, but they didn't want to interfere.

And of course, Alan Greenspan and the Ben Bernank declined to be interviewed...

[Tortoise]

To be honest, I think the film was designed for more of a mainstream audience.  I understand why libertarians might want to abolish the Fed, but that thinking is very much outside of mainstream America.

I didn't suggest the idea of abolishing the Fed be included in the documentary. That would immediately turn off 90-95% of the audience. I merely suggested that the Fed's role in the financial crisis at least be discussed. I don't think discussing the topic of the Fed and its role in the economy, if done in the proper way, is too advanced for a mainstream audience.

A good first step would be to stop bailing out failing financial institutions.  Let's work on breaking up TBTF first and worry about the Fed later.  Baby steps, or pick your battles, as it were...   8)

I agree that addressing TBTF is probably more important than discussing the Fed and the effect of interest rates on lending and speculation, but we are not necessarily restricted to one or the other. Both of them are great topics to include in a documentary about the 2008 financial meltdown; both are completely amenable to mainstream consumption, IMO. It's just a matter of presentation style.

[moda0306]

I agree that the Fed needs to be discussed.  TBTF, regulation, and crony capitalism are huge issues and I'll always think of collusion/monopolies as a market-failure we need to watch out for (especially within an industry that can collapse an entire economy along with it), but to not even discuss fractional reserve banking, the fed, etc, really doesn't drill down enough.  Having an entity tied so closely with banks creates a whole new web of incentives and moral crises that need to be "regulated" that you can't really have a complete analysis of the issue without it.

That said, I haven't seen the documentary, and am dying to.

[MarySB]

Great documentary. I watched it on YouTube where you can watch it as many times as you want.

No charge :-)