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Inside Job

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Inside Job
Inside Job is about the causes of the global financial crisis of 2008. It is the effect of a series of causes beginning in the 1970s.These causes most obviously includes - the deregulation that allowed excessive and reckless actions in finance, fraud, conflicts of interest, and sabotage. The result of these actions was a massive decline of financial stability for the global masses and a correspondingly massive incline of financial gain for a minority of heads in high finance and government.
It was shown in the movie that deregulation started in the Reagan Administration which allowed the financial sector to have more freedom and less discipline, which provided more opportunity for profit and risk. A new method of mortgage lending was developed in the financial system that allowed for excessive betting without immediate risk and incentives to sabotage the system for personal profit. The result is an incredible, foreclosures and bankruptcies. That ends to loss of people homes and jobs. And this financial crisis was spreading around the globe including in Iceland, those results to global recession- the economic decline in GDP for two consecutive years.
Dishonesty. In Principle 6: Efficient Capital Market- Positive Image in the market must be insured. However, it was shown in the movie that many of the leaders in the financial sector (receive big amount of corporate bonuses) were brought to congress but they did not accept the responsibility or did not show much concern for their actions. And some of these leaders are now working in the new administration.
Principle 7: The Agency Problem. Top executives of the bankrupt companies walked away with their personal fortunes intact. The executives had hand-picked their boards of directors, which handed out billions in bonuses. The major banks grew in power and doubled anti-reform efforts. Economists advocated for deregulation and helped shape U.S. policy. Many of these economists had conflicts of interest, collecting

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