Inside Job
The American government consistently has deregulated the financial market. Taking advantage of deregulation, investment banks bundled mortgages with other loans and debts into Collaborated Debt Obligation(CDO), which they sold to investors. CDOs are made up of diverse debt of many debtors, so even experts have a difficult time understanding its money flow structure. What is worse, top three rating agencies, Fitch, Moody’s and S&P, took bribes and gave AAA ratings to CDOs. As a result, those financial companies earned an astronomical amount of money.
But in the end, the bomb exploded and some major financial companies declared bankruptcy. But all responsibility fell on ordinary citizens. By reason of prevention from world economic turmoil, the government helped those companies by using citizens’ money. It is like the old saying “One man sows and another man reaps.” I recommend you watch this movie if you are interested in economy.
By Park Seung-seok , Senior
Dept. of Business Administration
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