VIDEO-Inside Job

Inside Job is a finely crafted documentary about the housing bubble collapse and Wall Street shenanigans. It does a good job of taking a complicated crisis and making it simple. Unfortunately, it gets the story wrong.

Inside Job takes the leftard position that the housing bubble and its bursting was the result of financial deregulation. Because of a few greedy Wall Street players, the USA and the rest of the world suffered an economic implosion that still affect us today. The problem with this understanding is that it makes a scapegoat of bit players in a much larger drama. Goldman Sachs and other banks are pretty damn slimy. But what about good old Fannie Mae and Freddie Mac? These government sponsored entities are barely mentioned in the film. The reasons for this are obvious.

For the leftard, capitalism is the problem, and government is the solution. The reason why government fails is because it has been "corrupted" by the bankers and the capitalists. This is akin to saying a pile of horse manure has been corrupted by flies. You cannot corrupt a pile of shit. Corruption is inherent.

Austrian business cycle theory does a much better job of describing why the crisis happened. It is essentially the same story of every bubble that preceded the housing bubble. The Fed sets interest rates artificially low. The banks are the recipients of money that is created out of thin air. The value of this new money is derived from the value of the old money in much the same way that a counterfeiter steals from the holders of all real money. This is why the poor suffer because their wages and meager savings lose purchasing power. The recipients of the new money take this fresh cash and invest it in stocks, bonds, debts, and derivatives. This would be the banksters. This is why they get rich at the expense of the rest of us.

Saying that Wall Street needs more regulation is akin to giving a bunch of kids stockpiles of dynamite, an entire box of matches, and insisting that there be a warning label on the matchbox. This is the absurdity of Inside Job. This film does virtually nothing to explore the role that central banking plays in these bubbles. All it does is focus on a bunch of dumb kids playing with matches and not the parents that gave them the matches or the dynamite.

Inside Job goes on to claim that the disaster was averted by the same people that caused it except the government is seen as the benevolent hand here. The reality is that the Federal Reserve pumped more fiat currency back into the system it corrupted in the first place. The reason the bubble popped was because the Fed turned off the spigots. Now, those same spigots are back on wide open. This is why the likes of Goldman Sachs, JP Morgan, and all the rest are back in business making money while the rest of us are still suffering. The shitheads behind Inside Job don't see this happening at all. Their leftard worldview prevents this because they are goddamn idiots who see things in a biased hindsight.

These bubbles cannot exist without the Fed. Inside Job serves as just a defense of the government while scapegoating Wall Street. Without a doubt, the banksters gambled and got bailed out in much the same way those kids were the ones playing with the matches before the big boom. Inside Job says those kids need fewer matches. I say let's get rid of the dynamite which is the Federal Reserve and its printing press.

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