Inside Job (2010) A "must see" documentary

I'm not an expert on financial regulation, but I felt "Inside Job" was a very skillfully produced documentary on an immensely important issue. I had some general knowledge about the Subprime Loan crisis and how it happened, but this documentary seems to explain the weaknesses in our current regulatory system more clearly than anything I have seen so far.

The issue here is how financial greed (and, I would argue, a disregard of their responsibility toward society) among a wealthy elite is allowed to be protected by a web of arrangements between financial institutions, the government that is supposed to regulate them, and academic institutions that are supposed to analyze and point out the dangers for society.

The documentary implicates the investment bankers such as Goldman Sachs, the government regulators such as the Federal Reserve's Greenspan/Bernanke, and academics such as the economics professors at Harvard and Columbia who advise the government. It seems clear that those involved knew what was happening, and did not take steps to stop the greedy risk taking which the documentary calls the Heist, an inside bank robbery job.

After watching this, you just wonder, how could a group of immensely wealthy people (owning millions of dollars in assets) who knew that these careless risks could end up affecting the lives of millions of people who will have trouble eating, living, and getting basic medical care and education from day to day, just gamble with the high risks, lose billions of dollars of people's money, crash their companies and cause economic difficulties around the world, and yet get billions of dollars of taxes (from us) to save their money, and walk away still being millionaires.

The documentary producer Charles Ferguson in his interview at the end of the film states that he believes many of these con men running a gigantic legal Ponzi scheme should spend several decades in prison. Maybe so.

I would say that they should at least have to start over from zero. They should forfeit their personal assets to pay back their debts, become one of the jobless persons (like the millions they affected), and be banned from ever having a job in financial services again.

Of course, there is a very small chance of that type of regulation or penalization ever happening because the government bodies that are supposed to create such penalties are run by advisers and academics who they used to work with (or who they will hire and work with in the future). In principle, I am sure that Obama is for punishing the greedy industry more, but he has been unable to pass legislation with teeth. Obviously, it is very difficult to penalize rich powerful cliques of people. They protect each other. Money talks in democratic politics. People will shut their mouths of if given a bonus of a million dollars to keep working in the greedy system.

So, what can break the system and cycle? Politicians who are not afraid to oppose money, academics who are not afraid to criticize the system even if their universities (like Harvard, for example) are run by people who created and maintain the system, and do I dare dream...members of the financial industry who believe that they should only earn a honest wage for their work, and see a million dollars as money that is completely unnecessary to have a personal income...I mean how much do you really need?

I hope the education that I provide to my students helps them realize the social responsibility that talented, privileged people like them have toward creating a fair, caring world where members of powerful institutions avoid pursuing wealth beyond need.