Orlando Kimber writes –
To understand the behaviours and practices that led to the 2008 crisis, watch the shocking documentary film ‘Inside Job’ narrated by Matt Damon. Whilst many of the points have been well covered in the past, this is the first time they’ve been presented in one place at one time.
According to the film, the self-created perfect storm included (in no particular order):
Banks betting on companies to fail
Banks permitted to leverage capital by a multiple of 33
Deliberate de-regulation of banks by the US government from 1981
Corporations insuring assets that they didn’t actually own
Investees avoiding accountability to the investor along the whole value chain
Investors removed two steps from the assets in the value chain
Bank and finance company employees using prostitution and drugs ‘for sales promotions’
Commercial banks used retail assets for investments.
Heads of economics departments in higher education were on the payroll of banks
Economics programmes in higher education reflected the banks interests
Alleged objective financial studies e.g. ‘The Solvency of Iceland’, were influenced in the same way
Debt was repackaged and resold
Ratings were applied to packages after sale, not before
Ratings companies misled about ratings, later to say that they ‘only expressed opinions’.
Ratings companies were slow or negligent in responding to changes
Properties could be mortgaged on a high multiple with no due diligence of credit
‘Inside Job’ is available on DVD from Sony Pictures.
TAP – thanks for that lot, Orlando. It’s a good and simple explanation.
I haven’t seen this film yet but it sounds promising. Hopefully, especially as the film is legitimised with a ‘star’ like Matt Damon narrating, people will see what’s been done to us.
I’m having great trouble convincing a lawyer friend of mine that anything is wrong at all. Even with the international banking and corporate cabal actually taking over nations directly (Ireland, Greece, Italy) she still thinks that all is ok.
She admits that we’ve dropped capitalism and ‘moved in to something else, which nobody really understands’. I’m always trying to inform people of what I believe is really happening. You’d think some of them were on board of Goldman Sachs or J P Morgan, the way they argue for and defend the actions of banks and the governments which represent them. I’m talking about ‘educated’ people as well, in good positions.
Facing up to the truth is very hard, even when the weight of evidence is overwhelming. People are so completely intoxicated on the rubbish they are fed by the corporate media, they’re often not able to see outside of the worldview that has been created for us. In fact, other opinions are seen as threats to perceived ‘stability’; people often react as if their personal security is being threatened. And they’re right, it is. Not by me though!
TAP If people want to be able to perceive the real events, they need to disconnect themselves from the main media which holds them back, and throws them little deceptions every time it talks. But as you say, most don’t want the fantasy world they live in to be dismantled. How will they be able to construct an alternative to live with? They should join us here on The Tap every day! It’s not too bad once you get used to it. In fact you know you are dealing with issues which otherwise will not even occur to people as being issues. Take a deep breath, and jump!