Documentary Inside Job

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International Financial Management’s Homework Name: Juan Maridueña Chan The documentary Inside Job This is a documentary about the 2008 financial crisis directed by Charles Ferguson. Ferguson has said it is about "the systemic corruption of the United States by the financial services industry and the consequences of that corruption." Through extensive research and interviews with respected financial experts, politicians and journalists, "Inside Job" explains the rise of a dishonest industry and unveils the corrosive relationships which have corrupted politics, the regulatory rules and scholars. The documentary focuses on changes in the financial industry in the past decades that have led to the crisis, the political movement toward deregulation, and how developments in areas such as complex financial derivatives market allowed large increases in financial risk taken by allowing circumvent regulations that were intended to control systemic risk. Also indicates that these conflicts regarding the risk rating agency as well as academics that are paid as consultants without informing you in your trials, obscuring and exacerbating the situation that led to the crisis. The documentary claims that the great risk that began with the subprime credit, was transmitted the investor to investor, due to a questionable classification practice, which falsely indicated that the investments were safe. Thus, lenders were led to sign mortgages without risks to consider, or even favor higher interest rates on loans, because at the time these were classified together, and the risk was hidden. According to the tape, the resulting products have AAA ratings, the same of government bonds issued by the U.S. government, allowing them to sell them even to the pension fund entities that can invest only maximum security. Also note for example that the Harvard economist and former director of

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