The destruction caused by a falling economy is much more sustainable than that to of a natural catastrophe like flood or an earthquake, because in case of the later, the whole damage is done in one go, and the reconstruction starts from the scratch just after that, and people are aware that there are no more surprises left for them. But in case of the former, you can never be sure as to how much is still lying beneath the carpet, every time you think all the dirt has come out in open, some thing more happens. But there is one much more vital difference between the two. Natural disasters never give signals months before in advance of their occurrence.
Many have wondered and some still dose on the reasons as to why the economic meltdown of 2008 happened. Even I fail to understand as to why the whole world economy collapsed, just because there was some problem with the housing market in USA . Would a similar situation arise in India , if our housing sector collapses, probably not. Not because our economy is robust, but because people in our financial sectors will look like saints if we compare them with their counterparts in USA .
It has been general opinion in India , that the financial sector of America became greedy and created complex products to increase profitability. But truth goes deeper than this, a weak structure was created and harbored, while constantly ignoring the high risk involved, laws were made so that big corporate can make huge profits and those laws were restrained which could have stopped this. The meltdown was not caused by human error, it was a well planned elaborate con game, in simple language you can call this as a fraud, which involved, investment banks, stock brokers, rating agencies (like S&P, Moodys, Fitch), housing mortgaging companies and people sitting at the apex government departments like, federal reserve and treasury.
All the high ranking government officials involved in this constant endeavor to serve the gigantic financial conglomerates while ignoring safety for public money made huge amount of money as consultants to these very companies, and the joke doesn’t end here as well, not only there were no criminal action taken against these very people, few of them were actually taken back in the system at the same critical positions.
How this whole game was played is very elaborate to explain, watching this documentary will be an excellent way to understand this mess. This documentary makes a mandatory watch for all people who are related to the financial sector, and for those people who find this field interesting.
Rating ****.

