Essays on Movie Too Big to Fail - Art Imitates Life in the Financial Crisis of 2008 Movie Review

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The paper "Movie Too Big to Fail - Art Imitates Life in the Financial Crisis of 2008" is an outstanding example of a macro & microeconomics movie review.   The HBO movie Too Big to Fail is a dramatization of the most critical period of the financial crisis of 2008, and is an adaptation of the book by the same title by New York Times reporter Andrew Ross Sorkin. (Kinsley, 2011) The movie depicts the events of the crisis between March and October, 2008, mainly from the point of view of Treasury Secretary Henry M.

Paulson, Jr. (played by William Hurt), who is the hero of the story, at least to the extent ‘ hero’ is applicable to a murky and often confusing tale of complex financial systems and high-level negotiations. This paper will review the timeline of the financial crisis in the critical months of August through October 2008, and present a brief review of the film’ s faithfulness to actual events. We then take a look at legislative initiatives intended to prevent the crisis from happening again and offer some insights into the implications of the crisis and its aftermath for the profession of industrial engineering.

To conclude the essay, the ethical problems revealed by the crisis and the attempts to mitigate it are discussed. Timeline of the Financial Crisis According to the Federal Reserve Bank of St. Louis (2011), the financial crisis really began in February 2007, when the Federal Home Loan Mortgage Corporation (Freddie Mac) announced it would stop purchasing many high-risk subprime mortgages and mortgage-backed securities. About three weeks earlier, however, the very first sign of trouble was an announcement by HSBC that they would raise loan-loss provisions on mortgages, a signal that they were having more mortgages default than they had expected.

(“ Credit Crisis Timeline, ” 2009) The critical period began in the latter half of July 2008, when Federal regulators took control of the Independent National Mortgage Corporation (IndyMac) bank in California following a run on deposits, at the time the second-largest bank failure in US history. (Kristof & Chang, 2008)

References

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Kinsley, M. (2011). “Economic Crisis Unfurls in Hushed Suspense,” The New York Times [online], 22 May 2011. Retrieved 6 December 2011 from http://tv.nytimes.com/2011/05/23/ arts/television/too-big-to-fail-on-hbo-review.html?pagewanted=all.

Kristof, K.M., and Chang, A. (2008). “Federal regulators seize crippled IndyMac Bank.” Los Angeles Times [online], 12 July 2008. Retrieved 6 December 2011 from http://articles.latimes.com/2008/jul/12/business/fi-indymac12.

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