Movie Review: Money, Power, and Wall Street
The financial crisis is an issue that will go to the annals of American history. It was the worst economic crisis after the Great Depression. The documentary provides the causes and effects of the crisis. The documentary provides the information based on the opinions of the experts as they show how money, power, and Wall Street played significant role to rob the Americas economy. The federal reserves used unprecedented monetary policy expansion, fiscal stimulus, and institutional bailouts. Based on the documentary, both the fiscal policy and monetary policy expansion are evident. The monetary policy focuses on the money supply into the economy. It places the responsibility of controlling the monetary supply on the regulators. According to the experts, the regulator (the Fed) colluded with the Wall Street and government to run the economy to its knees. The regulator left the wall streets to control their activities thus giving room for the conflict of interests.
Additionally, the institutional bailout also justifies the presence of the monetary policy. In fact, the regulator reduced the interest rates thus prompting excessive borrowing. The banks established a credit default swap where the loan defaulter went caught free. The financial institutions opted to sell loans so as to pass risks. The financial institutions relied on the policies applicable in the commodity market where fiscal policy were practical. The unregulated policy encouraged the use of fiscal policy where the mortgage growth was unimaginable. The wide west created the home mortgage that Americans had never witnessed.
The experts narrate how different factors interacted to create the crises. Most importantly, the crises resulted from the hidden conflict of interests, complex and risky financial products, the market left to control the Wall Street, credit rating agencies, and the failures of the regulators. The financial supervision and regulation exhibited adverse failures. Additionally, the financial institutions lacked transparency, promoted risky investments, and excessive borrowing thus triggering the situation. The government’s poor and inconsistent actions spread panic in the economy. As such, the mortgage lending standards collapsed. Therefore, both fiscal and monetary policy interventions were in play.
The documentary confirms that the united policy initiated were undefined. For example, the experts confirm that the institutional bailout policy, monetary expansion, and fiscal stimulus were inevitable. Money, power, and Wall Street controlled the situation. For example, the government leaders including President Bush and the financial controllers (Wall Street) overshadowed the financial regulator. In fact, the Wall Street duped everyone that the policy was safe. It made the financial system to rot from the inside. For example, the people and institutions empowered by the constitution to oversee to financial system never recognized the risks. They failed to identify the rots within the system in time.
Since the conflict of interests was in display, the Wall Street fooled everyone that the financial risks were insignificant. They duped people that the crisis could be controlled. The Fed chairman was aware of the risks. However, he remained discreet and smart to reap from the fall. The Wall Street supported Barrack Obama because their interests would be secure. They denied John McCain votes because they wanted Obama to sweep their mess. President Obama experienced hard time restoring the economy. He opted to bailout the large American conglomerates to restore the economy. Unbelievably, the Wall Street never bothered about their huge allowances and salaries. They used the bailouts for their self-interests. They rarely agreed on regulator changes. As such, they maintained their status and positions. The country needed considerable regulatory changes to control the situation.
Frontline (Producer). (2012, April-24 & May 1). Money, power, and Wall Street [Episode 2]. PBS. Retrieved from http://www.pbs.org/wgbh/pages/frontline/money-power-wall-street/#episode-two