The documentary explains how the industry has gone corrupt as people from the system and the government were involved in instigating the crash. It also shows how academicians supported the crisis by giving credibility to the various policies and actions which were causes for the crash. There are interesting interviews with government officials, economists and bankers to show how the crash was because of greed for profits by some people. One of the worst disasters in the history of global economic markets, the 2008 financial meltdown led to the loss of jobs, income and homes for many Americans.
‘Inside Job’ is a well made documentary that investigates and details out causes of this crime and also calls for accountability and questions as to why there is no one held responsible for the loss to millions of people.
What do we learn from this award winning documentary –
- It explains meaning of various investment terms like Derivatives, mortgage securitization and credit default swaps in a crisp manner.
- If the returns on some investments/ securities are much more compared to others available in the market, think twice before buying it. Research thoroughly and ensure you know the downside as well before you buy it.
- One should not be very greedy in investments. You should have a target for your investments and exit once you reach your target even if it is tempting to earn some more by staying in the investment
- Do not follow the herd. It is very tempting to see many people getting great returns in a particular asset and you also feel like jumping in the bandwagon. But this is not a great investment approach at all and you should resist from doing this.
- Be aware and informed – It is easy to trust a big bank, investment firm to give you advice on investments. But as this movie shows, that there was a coalition between banks, investment firms, politicians and economists to earn maximum profits for themselves and the common man was forgotten. One should analyze and question what is considered correct before plunging into investments blindly.
- One important lesson is that in spite of the crisis and the expose, no one or no company was convicted for the crime by any court of law. This means, we have to remember that we are responsible for our investment choices and spending patterns and should be doubly careful.
Summary – An Academy award winning documentary –‘Inside Job’ shows how changes in policies and banking practices led to the corruption of the financial services industry, ultimately leading to the financial crisis which led to the loss of millions of dollars.