Question

In the movie "Too Big to Fail" What was the government's role in the crisis? Did you agree or disagree with the bailouts prior to watching the movie and researching the topic? After watching the movie and researching the topic do you feel differently about the bailouts? Finally, give me your overall impression of the movie and your thoughts on the crisis of 2008.

Answer 1

In the movie Too big to Fail is based on the idea that saving the troubled banks with the collaboration of healthy banks. Leading to the stabilization. It uses all the law and order techniques fir creating a sense of urgency.

President back to Reagan overregulated the financial industry . The available credit was drying up. The plan was to increase the available cash flow. The President of Federal Bank realizes that the market cannot wait for congressional action. He tries to combine consumer banks and investment bank to stablize the things but the things proved to be negative. Afrer the drop down situation in an economy the legislation passes the second attempt, leading to signed law of Emergency Economic Stabilization Act of 2008. After the downfall situation the government tries to save the banks, and the economy from collapse.

A bailout is a situation in which government or any other source tries to help the business who is in a condition of downfall by offering money to stablize the situation. The hazards of bank bailouts should be well addressed before the situation of any financial crises. There are many private companies that uses public backing to reduce their borrowing. Borrowing became too easy. When people were unable to pay their debts they dragged banks with them. Government do help the bank so that they may stabilize the situation.

Finally I would conclude by the following point:-

1.The movie focuses on the stabilize the economy.

2. Emphasize on the merging situation where trouble banks are merged with the healthy banks so stabilize the financial economy.

3. Government do take up the intiative to save the Banks.

4. It reminds us the situation when President George Bush needed votes when most of the republics were saying a no, causing an immediate dropdown.