Tuesday, November 6, 2012

Inside Job

            In watching this film, I found that there is a lot of corruption on Wall Street, and in the government. All of this corruption is caused by people’s greediness. The people on Wall Street knew that they were doing something very dangerous, and they knew that it could cause a problem, but they did not care. At the moment, everything was going good and they were making money. That’s all that they cared about. The government was deregulating them, and not having any regulations on the derivatives that they were doing. So because the people on Wall Street wanted money, they ended up costing the lower 99% their life savings and even their homes.

            Now, it is helpful to learn a little about derivatives. Derivatives are basically a contract between two parties. The price of the derivative is determined based off of the value of the asset, which are most commonly stocks, and commodities. A couple of sites that I found helpful with explaining derivatives are listed below.
Derivatives Definition

            Some things that I found interesting in this film were how the banks received good ratings, but then they ended up going bankrupt only days later. So the ratings must not mean anything, the rating companies just wanted to make the most money that they could. Another thing that surprised me in the film was how the FBI warned of an epidemic of mortgage fraud, but nothing was done about it.

            This film showed me that the government needs to stop being influenced by the money they get from Wall Street and they need to put the care of the country before how much money they can put in their pockets.  

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