The film ‘Inside Job’ is explained the occurrence of the global financial crisis in 2008. It has shown that lots of companies have bankrupted and millions of people lose their jobs and homes around the world. Such as United States, Iceland, England, France, Singapore and China. There is a sentence in this film has make me impressed, which is “ the poorest always pay the most.” The director has separated this film into five parts, which are How we get there, The Bubbles, The Crisis, Accountability and Where we are now. The entire film has shown a harsh reality, which is the financial industry have dragged the corrupted politics, regulation, and academia into the huge dominoes effects. The deregulation causes the financial crisis. Because the Wall Street and the government collusion, hiring well-known scholars to lobby, Wall Street had controlled the entire financial system and the US government let Wall Street alone. At the result, due to Wall Street had broke financial system, the rich people get more rich, the poor people get more poorer. The film attempts to expose the essence of the financial crisis and the consequences of global stock market crush, large bank failures and the ensuring social impact. In the first part of this film, starting with the financial debts problem of Iceland, government has changed their process of financial deregulation.
Administration allows saving and loan companies to make risky investments with depositor’s money. Another problem is investment bank had known the promoted of Internet Company would be failed, they still promoted. This lead the investors made loss for $5 trillion. The second part of ‘Inside Job’ states that all financial companies wants to have big profit, then the Bubbles was built up by bankers, investors and directors’ improper operations. During the housing boom, the ratio of money borrowed by an investment bank versus the banks’ own assets reached unprecedented levels. At the same time, the three biggest rating companies contribute the problem and explained that the triple A rating just their opinions. Goldman-Sachs lies to the investors they were still high quality. The third part of the film is about Crisis. Financial companies were running high risky operations like subprime mortgage, sale junk financial products, overstates the security and conceal the risky. The whole economy in US enters into recession and reached unprecedented levels.
The fourth part is accountability. The tops of governmental economic advisors still have power in academic circle. The major banks grew in power and doubled anti-reform efforts. Lots of economists had conflicts of interest, collecting sums as consultants to companies and other groups involved in the financial crisis. The final part is about where we are now. Because of the Wall Street Government, so it is very hard to tighten the supervision over financial system. Thousands of American factory workers are loss their jobs. In conclusion, I think Wall Street Executives and the US government cause all the consequences of financial crisis. The universities’ professors have the close relationship with the Executives of Wall Street. they are only focus on beneficial themselves, not take action on prevent the economy. For example government should make some regulation and punishment for conflicts of interest. Activity 1,2,3
This film explored how changes in the policy environment and banking practice helped created the global financial crisis. Also disclosed the collusion in the Wall Street Government, and lies behind the financial crisis in 2008. This film made me feel that in the US financial system, the enterprise executives, government official and economic advisor to a group of scholars, they are easy to become the beneficiaries, no matter the normal operation of the financial system, or a financial bubble burst, and ordinary people only in foam expand, having the dream of getting rich, but when the bubble burst, the victims still the ordinary investors. In this film governments allow Banks to have home ownership program, its lend money to poor people to buy houses.
It starts out great and home ownership explodes. But when the crisis comes and the bubbles burst, the poor people would not repay their mortgage, they cannot afford, and then they become homeless. The rich people got the profit. It can be seen that during the financial crisis, the poor people lose more, and the rich people get more. Therefore, everytime the government intervenes in the free market, even on the grounds of virtue, bad things will happen. We need to be wary when politicians try to do things on our behalf. The initial causes of collapse of financial system in Iceland was deregulated banks within Iceland were able to amass a debts load almost ten times their GDP, and eventually unable to carry this debts, it will lead to crisis.
Actually, the positive accounting theory tries to make good predictions of real world events and translate them to accounting transactions. To Achieved Positive Accounting Theory, we can Change accounting policies, Managing discretionary accruals, Timing of adoption of new accounting standards, advertising, repairs & maintenance and capitalize operating expenses. During the financial crisis, the market cannot correct itself, we need government regulations and I think only US government can control Wall Street and the financial institutions like banks. The banks can make more money and helping the economic growth.
In many cases unlawfully foreclosing on homeowners who have been victimized by past GOP economic policies and they are have a hard time to make their repayments. In this film, it shows lots of collusions, lots of lies behind the truth, conflict interest of bankers, economist, even though the people who worked in government. But we have to consider our own opinion, we can not believe what we don’t know. Also we cannot trust anyone else’ comments. We need have our own ideology, and make sure it would not be change by anyone else. We can have our own opinion about what actually causes the financial crisis in 2008. also think about whether or not the films have shown is right or wrong?
When the financial crisis come, Nobody knew how big the losses were or how great the exposure of individual banks actually was, so trust evaporated overnight and banks stopped doing business with each other. When the US government allowed the investment bank Lehmon Brothers to go bankrupt. It had been assumed that governments would always step in to bail out any bank that got into serious trouble. When Lehman Brothers shut down, the result of every bank was deemed to be risky. The banks were rescued in the nick of time, but it was too late to prevent the global economy from going into free fall. At the same time, the consumer and business confidence collapsed.
There are lots of buildings in the university such as library, IT Building, lecture rooms. Also need teachers and students. Government can provide funding of the university and expect to attract lots of students to study in the university. For example, in Australia, there are a lot of oversea student in each university. I think accounting can help us plan, itemize, and budget the personal expenses and reflect that itemization on a business that we may start, Plus, to learn the fact of accounting theory and how it relates and does this analysis in a systematic way, for example, Cost principle is all purchases are recorded on cost basis regardless of their market value in case of increase. I also think Accounting is a very interesting field. I have done ACCG250, from this subject, I have learned how to use the MYOB software. It can help me to working in the large accounting firms in the future.
The IASB is committed to developing, in the public interest, a single set of high quality global accounting standards that provide high quality transparent and comparable information in general purpose financial statements. In pursuit of this objective the IASB conducts extensive public consultations and seeks the cooperation of international and national bodies around the world. IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. They both play a role in an accountant’s education outcomes. Accounting firms always need accountant have the degree of education or have qualification. Accountants have to understand the type of accounting roles.