Inside Job

The global financial crisis that unfolded in 2007–08 drove millions of people into bankruptcy and plunged the economy into recession. Directed by Charles Ferguson and narrated by Matt Damon, Inside Job dissects the causes and implications of the downturn and analyses the role played by several key financial and political figures.

The documentary demonstrates how the American financial sector brought the country to the brink through reckless risk-taking, complex financial structures, and sheer greed. Banks provided mortgages to people who were unable to afford them in order to earn greater fees. Through financial engineering, these ‘toxic’ mortgages were sliced, diced, and bundled into complex packages and sold to outside investors, who later lost out when house prices declined and borrowers defaulted. The repercussions were severe and spread throughout the economy. People lost their homes, and investors and pension funds suffered heavy losses. The information presented in this film is likely to inspire both anger and outrage.

Among the people interviewed for Inside Job are billionaire investor and philanthropist George Soros, NYU professor Nouriel Roubini, who predicted the crisis in 2006, US Representative Barney Frank, and Eliot Spitzer, who sued major investment banks while serving as New York State Attorney General. We also meet Glenn Hubbard, former economic adviser to President Bush, who becomes defensive and prickly in response to the interviewer’s pointed questions. Furthermore, the colourful insights of former Wall Street madam Kristin Davis are particularly intriguing.

Overall, Inside Job provides a comprehensive critique of the factors that led to the financial crisis. Through its structured presentation, it seeks to enhance understanding of a pivotal event in recent economic history.