Abstract

'Inside Job' is the first film to provide a comprehensive analysis of the global financial crisis of 2008, which at a cost over trillion, caused millions of people to lose their jobs and homes in the worst recession since the Great Depression, and nearly resulted in a global financial collapse. Through exhaustive research and extensive interviews with key financial insiders, politicians, journalists, and academics, the film traces the rise of a rogue industry which has corrupted politics, regulation, and academia. It was made on location in the United States, Iceland, England, France, Singapore, and China. In this paper we try to critically analyze the movie “Inside Job”. The paper writes about the economic crisis of 2008. The paper includes few major perspective that have an impact on economies in 2008, and all these perspective are taken from the Inside job. The paper includes few questions that are 1. What are the benefits and criticisms of free market? 2. Why is Wall Street compensation so high, are the salaries justified? 3. Who do you think bears the most blame for the events depicted in the film republican or democrats, Government or financial services company? If you choose a person or institution to blame, what should they have done differently? 4. Should someone go to jail for the behavior depicted in the film?

The truth behind the economic crisis of 2008

Introduction

Dealing with financial crises is not new for Latin American economies. For example, the Great Depression of the 1930s and the debt crisis of the 1980s had lasting negative consequences for many economies and took several years to stabilize. For Latin America, the main transmission channels of the global economic crisis could come from the reduction in export demand, decline in prices of commodity goods, and therefore a reduction in terms of trade as well as remittances and restrictions in financial credit sources (Bellamy, 3).

According to a number of analyses (ECLAC, 2008; International Development Bank [IDB], 2008; World Bank, 2008), most of Latin America is better prepared than before to confront external shocks due to improved management of macroeconomic policies. During the 1990s and, to a major extent, in the beginning of the twenty-first century, these countries have reduced their external debt, increased FDI flows, limited fiscal spending, and followed semi-flexible exchange rates. These macroeconomic measures should reduce the possibility of an economic crisis of big proportions. Also, the decline in foreign demand would reduce inflationary pressures that increase external demand caused during 2008 in some countries of the region such as Peru, Argentina, or Bolivia. In general terms, ECLAC (2009a) has projected a negative growth of -0.3% for Latin America and the Caribbean for 2009 and a decline of 15% in the region's terms of trade (Bennett, 395).

What are the benefits and criticisms of free market?

Capitalism (or “free markets”) was contrasted with socialism (or “communism”), where the features of the former were gleaned from aspects of the United States and its North Atlantic Treaty Organization (NATO) allies, and the latter was created from ...