Blog #7: Inside Job

Watching the documentary “Inside Job” allowed me to have more of an objective perspective on the Financial Crisis of 2008. Working in a financial institution in many ways created a subjective perspective towards this economic crisis, and in many ways I would put much of the blame on the government for its negligence towards financial regulation. However after watching this film, much of the blame shifted from the government towards the greedy Financial moguls that orchestrated in many ways, the downfall of their own financial corporations. The Chief Executive Officers in many of these investment banks and securities corporations were extremely reckless with their companies’ assets, but had no risk in doing so as their personal wealth would in no way be affected.

The blame however cannot be placed solely on one spectrum of the problem. The blame has to be placed on each spectrum, from the individuals making these reckless decisions, to those in government wanting deregulation of our economy. This notion of de-regulation created a shift in our economic paradigm. Financial moguls believed that the economy was self-sufficient and could not go through another economic catastrophe as it did with the Great Depression.

Deregulation along with our society’s obsession with the accumulation of wealth allowed financial moguls to exploit their investors in order to have a financial gain. They were able to capitalize on this notion that one should borrow capital in order to amass more capital. Failed leadership by Alan Greenspan allowed this notion to become a hegemonic ideology. He was heavily influenced by Ayn Ran, a Russian philosopher who stressed ethical egoism, and rejected any sort of collectivism, and ethical altruism.

Financial innovators capitalized on this weak regulation and were able to substantial amass wealth all throughout this period. Karl marx always rejected capitalism as he believed that the division of labor creates a class struggle. This class struggle would always involve the owners of the means of production exploiting those who sell their labor as a means of survival.

Hopefully as a society we can learn from our mistakes as we have seen that history always repeats itself. The individuals with social and economic power must make better decisions as they affect billions of people throughout the world.

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2 responses to “Blog #7: Inside Job

  1. danacarpentieri

    I agree with you that much of the blame should be put on the government for its “negligence towards financial regulation.” This film did emphasize the greedy selfish needs of banks to profit without much regard for their clients. It’s amazing to me how people were able to get bonuses within the company and that banks gave these loans without a background check on people just for their own benefit. They weren’t risking anything personally so that was a motivator as to why they conducted business this way. It also reminded me of Marx’s idea of class struggle. I like that your blog ended on an optimistic note and I hope our society can learn from our mistakes as well. Better decisions absolutely have to be made in order to have a better future.

  2. I enjoyed the film “inside job” because it helped me understand the debt crisis our country faced and is still facing today. I knew a little on what happened but to be honest never got the full story like everything else that happens. It help me understand why so many people lost there jobs, homes and savings and how a lot became homeless and even people in Florida living in tents in the streets. What I don’t get is why after declaring bankruptcy executive got to keep their money and continue living life the way they were used to and everyone else has to suffer. I think a lot of what happen in the economy had to do with firms being greedy. They never cared about the people they are affecting because they only wanted to make money. This reminds me of the global boom. The film talks about how the firms become corrupted which in turn corrupted politics and brought the system down.

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