How We Got There Summary

The first part of the documentary “How we got there” explains the main causes of the financial crisis as it looks at International Banks, Insurance Companies, Credit Agencies, etc. The documentary explains how in 1980’s the financial industry exploited as investment banks went public. They had hold of stockholder money, people on Wall Street where getting rich. This is an example of class as income as one’s class is defined by the amount of income one earns (Ross, 2017). The people who worked on Wall Street where roughly earning almost the same amount as their income provided them to be in the upper class as they had power to consume (Ross, 2017). This was due to the government in 1982, permitting the banking industry to make dangerous investments with people’s saving deposits as Travelers and Citicorp came together to form Citigroup which over stepped the Glass-Steagall act, causing many savings in the loan companies to crash as people lost almost everything that they saved up for. As mentioned in the documentary “the reason we have big banks is because banks like Monopoly power”. The actions of these banks risked people's lives as they exploited their money for their benefit of others (Ross, 2017) . This resulted due to the removal of the three major banks in Iceland that created a bubble in the

In early 1990’s, the economics and bankers had aid as technology was improving. It created financial products as derivatives was the main innovation. Innovation as we learned in class is the drive to develop new technologies production process and products to generate cycle of ‘creative destruction’ (Ross, 2017). This was completed as the derivative instruments were betting on stock prices, interest rates and bankruptcy of companies as the law was passed in 2000 that derivative were not controlled causing the derivatives market booming after