Sep 11, 2011 07:04 PM
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“INSIDE JOB” A WAKE UP CALL FOR WORLD ECONOMIES
It was hot. It happened. It should not happen. Again.
What happens when you wake up one morning and shockingly found yourself an an
Absolute lurch? With no job, melted insurance protection, drained savings,
equity stocks, bonds plummeted to new nothings?
Unfailingly , unwittingly and unmistakenly too, it can be easily stated that USA is
the capital Of capitalism. Ine can easily visualize capitalism written all over the
contours of America.
Charles Ferguson’s “Inside Job” is a rare and meticulous effort which has a charm
of a racy thriller , well researched and smartly documented which sometimes offer
the viewer a classroom feel. The title suggests a racy Hitchcockian suspenseful
thriller or even a heist flick but nop..it is a briskly paced docudrama telling a
story of economic crimes, social stigma. It encompasses the American economic
depression of 2008 where it mirrors, how the Americans were cheated, looted and
stripped off the trust of the giant corporate, banks, insurance co and
financial institutions they were proud of.
The documentary, which begins in a calm mood, grows on us gradually, spelling
surprises and shocks, making us angry and incredible.It simply amazes us with the
density of information of this complex but interesting subject. Its an
electrifying journey from 1980 to 2008—from the emergence of financial
deregulation in 80’s to 2008 tragic subprime bubble. The movie is not a singular
effort/labour of Ferguson. In fact it is the successful participation of numerous
journalists –books---articles…which has paved the way to a very strong economic
message all over the world.
The text of the movie can be squeezed as under:
1 The random and wayward deregulation of the financial services industry in
1980-90
2 Stock market playing s pivotal role in an average American life, growing
popularity
Of complex and risky derivatives
3 Real estate bubble
4 Subprime lending explosion.
Everyone saw and knew the gradual development of the above and were celebrating as
Vindications or the power and wisdom of markets. Even when stock markets made new
highs profits swelled , there was a definite apprehension in the minds of stray
investors, economists govt. machinery that something is definitely going wrong
with frenzied speculation. But these apprehensions were
buried, suppressed, dismissed and ignored neatly by self sworn investment
prophets.
The film clearly folds—endless interviews and clips paving the way for an
absorbing history smartly narrated by Matt Damon( of bourne franchasie).It
brightens up story which rests its anger on reason, research and argument. It
offers a sweeping saga which takes the viewer back to Reagon administration to
the present anatomy of financial crisis.
Perhaps, unsurprisingly, many of the players declined to be interviewed. Many shyed
and did not submit to the Ferguson’s questionare. The warning of catastrophic
meltdown by Raghuram Rajan , chief economist of IMF in 2005 was smoothly ignored.
Some investment bankers were betting against the positions they were pushing on
their customer.Consumer loans tied up into securities—certified as sound by
rating agencies paid by bankers and insurance co vis credit
Default swaps (CDS )One risky bet was stacked on top of another and in retrospect
the collapse of the whole edifice—along with the loss of jobs, homes, pension and
political confidence.
Ferguson pointed out fingers , an addition to bankers and govt., to academician—
where economists were corrupted by consultancy fees and when questioned were
reduced to stammering confusion.
“Inside Job”is a serious movie …a demanding one but not without flaws. It hardly
showed the Effects of financial crises on the common man. Again , Warren Buffet
, the prophet of value Investing, investment gurus like Marc Faber, Mark Mobius
are clearly missing. Again with the arrival Of Obama administration most of the
prominent posts were occupied by the players responsible for the crises.
What’s happening now? August 11 has been the most eventful month for America and
the international stock markets (including India). The US economy downgraded by
Standard and Poor credit rating agency from AAA+ to plain AAA for the first time
in 100years has sent shivers globally.That USA has been stripped off from its
numero uno status has come a shocker to one and all. American downrating along
with the European debt crisis of PIIGS ( Portugal Italy, Ireland, Greece, Spain) has
cast ablack shadow over global economies including BRIC
countries so much that all the global stock markets fell like a pack of cards.
Still, “Inside Job’ positively calls for an imperative and inspirational watch for
finance students investment bankers, stock market analysts, insurance consultants
and to top it all a common
Movie buff.
Scripted and Reviewed by
ANAND POTDAR
(Financial and Entertainment analyst)
