Inside Job


The inside Job is a 2010 documentary directed by Charles Ferguson to have an in depth look at the 2008 financial crisis which made a lot of people lose their jobs, savings as well as their lifestyle. The movie also explains on how the crisis came to be by analysing the financial and economic activities during the previous years. One of the major economic failures was the 2000 deregulation of the economic sector and its effect would later be felt years to come (Ferguson).

Iceland had a stable economy and good services were provided to its people as the lifestyles were high. However, it was doom for Iceland in 2000 after the government stated that banks would no longer be regulated and made three of the major banks private. This would see both financial and environmental crisis for the country. The banks borrowed a lot of money and loaned too much which eventually led to their collapsing and this was felt by the normal citizens (Ferguson). The AIG and Lehman Brothers investment bank were some of the companies that ran bankrupt in 2008 hence causing the crisis not only in America but the world in whole leading to poverty and high numbers of unemployment.

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How We Got Here

Following The Great Depression bank activities were highly monitored and any suspicious activity or investments with the people’s savings was closely looked into. For close to forty years the banks were under a regulation up to 1980s. However, this was not the case in the 80s as the banks used the savers money for very risky investments after deregulation was introduced. The economy was dominated by a few insurance companies, banks and financial conglomerates. The number of mortgages increased and the lenders did not really care if the loans would be paid in full or paid at all. These banks gave out large number of amounts as loans so as to gain through the interests (Ferguson). The banks made loans and house mortgages Collateral Debt obligations which got triple A (AAA) ratings hence encouraging banks to continue giving out loans without putting other factors into consideration.

The Bubble (2001 to 2007)

More and more people started owning houses and so much funds had been borrowed from the investment banks hence creating a big financial bubble awaiting to burst. Many Collateral Debt Obligations were sold to investors (Ferguson). Goldman managed to convince investors and sell out Collateral Debt Obligation of close to 3 billion. By 2006 more Collateral Debt Obligations continued to get high rates of AAA.

The Crisis

Most banks were left with so many unpaid loans with the market for selling Collateral Debt Obligations collapsing. This led to the Great Regression from end of 2007 and by the beginning of the next year; the government had taken some banks that were at the edge of being bankrupt and also the AIG. However, some banks such as the Lehman Brothers became bankrupt and collapsed (Ferguson). Unemployment and poverty levels increased among the citizens as banks closed with savings.


Despite the collapsing of many banks the top executives’ lifestyles were not affected as they had given themselves so much money in form of loans and hence they continued to be rich.

Where We Are Now

The financial crisis caused so many companies in America to shut down and caused a lot of effects that not even the Obama’s government could solve them. The rules and changes made by the government were also not effective in overseeing the monitoring of the rating agencies and compensation of the banks unlike for the countries in Europe (Ferguson).


Works cited

Ferguson Charles (Director), Marrs Audrey & Ferguson Charles (Producers). “Inside Out”[Motion Picture]. Representational Pictures, USA, (2010).