We have paid a heavy price for assuming that those in charge know what they are doing and that they are operating in the nation's best interest.
Many want the bad actors in the film put in jail--which is easily understandable. The problem is that a lot of bad things can be done without it being criminal. It is easy to not do one's job in the pursuit of greater riches, which will be seen over and over in the film. This isn't a crime under the criminal code. Most viewers will get that.
What is unfathomable is that the leading institutions of the country continue to employ many of these people at the highest level. The Federal Reserve, Columbia Business School, the various think tanks should be ashamed.
I, for one, am deeply ashamed for the economics profession. Watch the film and see why.
Off late I've been watching a number of finance related documentaries. This is one my list as well.
ReplyDeleteThe last good one I loved was 'The smartest men in the room' on Enron. Relatively old, but a very good watch.
Thank you so much for the recommendation.
ReplyDeleteThere is no shame in any profession available, people do need it. But somehow law & economics seems to be additional burden to all of us, on top of our daily jobs.
Somebody likes to learn about it, like myself but most people suffer from lack of knowledge and interest.
This is something of prime importance on the way to financial independence.
I am British myself in the UK, but I actually follow both the UK and American investing and finance industries. Its absolutely true about criminality being difficult to prove, and that the line between criminality and plain greed is thin. Madoff was clearly a criminal, but those Bear Stearns MBS hedge fund guys that got prosecuted 3-4 years ago were acquitted. And there are much more egregious cases of stupidity that were probably not technically criminal - I mean, how about that guy heading AIGs financial products group who passed out CDS like lollipops and literally played a key (though unknown to most) role in the financial meltdown. It will be interesting to see what happens with MF Global, and whether it turns out there was actual criminality or just incompetence, that will be one to watch closely. And let me hasten to add, over here, the rage against the City is just as strong.
ReplyDeleteGreed has killed a lot of golden gooses throughout history. Enron is one example. Countrywide Financial is another. Witness the NBA lockout now taking place. In the financial services arena people know that regulations should be put in place. But they look the other way because of short term rewards. Presently,for example, insider trading by members of Congress is coming to light. Experts will undoubtedly be paid to defend the insider trading.
ReplyDeleteUnfortunately, the word "regulation" tunes a lot of people out. They associate it with taking away people's freedom. The problem is though that too much freedom affects others in many cases in surprisingly subtle, complex ways. Putting a speed limit, for example, in place limits everybody's freedom but benefits everyone on the roads. Requiring a 20% down payment for a house affects people's economic choices but, again, protects others as well - ask people who live in neighborhoods where foreclosures are rising.
I have heard about the 'Inside Job' and would love to see it. Thanks for the recommendation. I enjoy watching movies like this. Sometimes they shed an interesting light on topics that aren't well known.
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