Themovie clarifies the economic catastrophe, which occurred in 2008, and whatcaused it. In the U.S.
, the economy dove into the Great Recession marking itworse than the one in the 1930s. More than 8 million citizens were jobless withsix million losing their houses in the U.S. alone.Duringthe 1990s, Lewie Ranieri who was a Wall Street banker created mortgage-backedsecurities (MBS) meaning firms in Wall Street were in a position to collectmortgages together in securities’ baskets then sell them to investors andbanks. They were safe ventures until banks started lending money to anyone,including those who could not afford to buy a house, putting more unsafemortgages in the securities’ basket at C.D.Os (Collateralized Debt Obligation).
The bank used CDOs to pile up bonds that weren’t selling together, and thenthought them diversified, and then acquired AAA ratings with no complaints. Theassessment organizations gave highest scores nonetheless. Massive leverage,short-term interests, subprime lending, and poor risk controls were unethicalbehaviors that the firms depicted during this period (Lewis, 2017). Theirshort-term interests cost the economy effects felt over the whole world. Experienceis the best thing in life. Greed brought about the 2008 fiscal crisis. It waswell based on short-term benefits instead of the bigger picture.
We can benefitif we learn how to stay away from excessive gains. Firms and assessment groupsgave misguided information on rankings and figures. False scales never end upas true. It is best to stick to the truth; even if not that pretty. Banks aswell can prevent subprime lending. If due diligence is done by everyone thenthe crisis can be prevented.
We have learned something from the crisis. We arerequired to behave ethically because at the end of it all it only affects us inreturn.