Too Big To Fail Writing Assignment Literature & Language Essay

Too big to Fail
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Too big to Fail
The movie “Too big to fail” provides an insight into the 2008 financial crisis by portraying the actions undertaken by influential people such as Henry Paulson and others in Wall Street and Washington to resolve the crisis. The movie illustrates how the federal government and the private sector worked together, despite their initial disagreements, and came up with solutions to the problem after several investment banks went under water.
Based on the movie, investment banks trading for themselves was one of the reasons behind the 2008 financial crisis. This is because, as noted by Warren Buffett in the movie, it made it hard for risk managers to mitigate and control any risks as a result. Further, everyone was buying, selling or building houses and it is likely that some of them could not afford it, thus putting pressure on the financial markets. The real estate market was affecting investment banks’ performance, and the government never considered the possibility that the real estate market could go down, the investment banks, and the insurance companies until it happened, catching everyone off-guard. Deregulation also contributed to the financial crisis. In the movie, it is noted that the deregulation that Paulson advocated for during his time in Wall Street was affecting the current state of the economy and at some point, he would have to reconsider the deregulation in his capacity as secretary of the treasury.
The events depicted in the movie portray the characters, both in Wall Street and Washington as heroes through their behind closed doors meeting. Through different events in which major deals are closed to save investment banks, the characters are revealed as saviors of the world who are only doing their patriotic duties, yet they all have vested interests in the current state of the economy. Interestingly, the movie fails to fully illustrate or account fo...