Managemant Movie Review Example | Topics and Well Written Essays - 750 words

Managemant - Movie Review Example In retrospect, the financial crisis was the result of a financial bubble in which assets, such as stocks, bonds, homes, financial instruments, and anything of economic value, acquire an inflated market price in relation to their actual, or intrinsic value. In other words, this crisis was the result of speculation, lack of government regulation, absence of any foresight on the part of financial regulators (such as the Federal Reserve Bank, Securities and Exchange Commission, the Congress, and ultimately, the financial industry to self-regulate), and the greed of investors to throw caution to the winds and take big, irrational risks. The film was produced and directed by Charles H. Ferguson which made extensive research into the causes of the worst financial crisis this generation has seen, narrated by actor Matt Damon, and co-edited by Chad Beck and Adam Bolt. In hindsight, the cause of the crisis originated several administrations back, to the presidency of Bill Clinton, when the banking regulation that mandated separation of banking and investing functions of banks got scrapped, which in effect created a moral hazard, in which the financial industry took huge risks. The elimination of the separation of banking and investment created a frenzy to make big profits out of new financial instruments called derivatives, such as collateralized debt obligations (CDO) and its twin, the credit default swaps (CDS). Further, investment bankers did not want their industry to be subjected to oversight and regulation, arguing that this goes against the spirit of enterprise, capitalism, and free markets. The bankers specifically refused to agree to put limits on their leveraging activities, which created a financial house of cards to maximize their profits with only a small capital needed to finance large transactions. The financial crisis which started in 2008 ironically produced