Femcompetitor.com, grapplingstars.com, fciwomenswrestling.com, fcielitecompetitor.com, fciwomenswrestling2.com By-Master1305-Shutterstock-photo-credit-Editorial-use-
July 3, 2024,
It’s all connected.
And we all probably wish that it were not.
The banks, our savings and the stock market.
Don’t we put our money in savings to protect us from the upheavals of the stock market?
And yet, as the stock market goes, our savings would go too, if it weren’t for government bailouts.
Let’s go to the movies.
Too Big to Fail is a 2011 American biographical drama television film directed by Curtis Hanson and written by Peter Gould, based on Andrew Ross Sorkin‘s 2009 non-fiction book Too Big to Fail.
The film aired on HBO on May 23, 2011. It received 11 nominations at the 63rd Primetime Emmy Awards; Paul Giamatti‘s portrayal of Ben Bernanke earned him the Screen Actors Guild Award for Outstanding Performance by a Male Actor in a Miniseries or Television Movie at the 18th Screen Actors Guild Awards.
Here is the storyline.
In 2008, news channels are full of reports about the mortgage industry crisis and the forced sale of troubled investment bank, Bear Stearns, to commercial banking giant JPMorgan Chase, with Federal guarantees. With Bear Stearns out of the picture, short sellers turn their attention on another investment bank, the mighty Lehman Brothers.
What about Lehman Brothers?
Lehman Brothers Inc. was an American global financial services firm founded in 1850.
Before filing for bankruptcy in 2008, Lehman was the fourth-largest investment bank in the United States, behind Goldman Sachs, Morgan Stanley, and Merrill Lynch, with about 25,000 employees worldwide.
It was doing business in investment banking, equity, fixed-income and derivatives sales and trading, research, investment management, private equity, and private banking.
Get this.
Lehman was operational for 158 years from its founding in 1850 until 2008.
On September 15, 2008, Lehman Brothers filed for Chapter 11 bankruptcy protection following the exodus of most of its clients, drastic declines in its stock price, and the devaluation of assets by credit rating agencies.
The collapse was largely due to Lehman’s involvement in the subprime mortgage crisis and its exposure to less liquid assets.
Lehman’s bankruptcy filing was the largest in US history, and is thought to have played a major role in the unfolding of the 2007–2008 financial crisis. The market collapse also gave support to the “too big to fail” doctrine.
The Emergency Economic Stabilization Act of 2008, also known as the “bank bailout of 2008” or the “Wall Street bailout“, was a United States federal law enacted during the Great Recession, which created federal programs to “bail out” failing financial institutions and banks.
The bill was proposed by Treasury Secretary Henry Paulson, passed by the 110th United States Congress, and was signed into law by President George W. Bush.
The funds were mostly redirected to inject capital into banks and other financial institutions while the Treasury continued to examine the usefulness of targeted asset purchases.
Many hard working citizens have a problem with the government’s position that they will bail out banks if they fail. It places the banks in a position to be over confident and not sound in their banking practices if they know the government will always come to bail them out.
Let’s look at another film.
Margin Call is a 2011 American drama film written and directed by J. C. Chandor in his feature directorial debut.
The principal story takes place over a 24-hour period at a large Wall Street investment bank during the initial stages of the 2007–2008 financial crisis.
It focuses on the actions taken by a group of employees during the subsequent financial collapse.
Let’s delve deeper into the storyline.
In 2008, an unnamed investment bank begins laying off a large number of employees. Among those affected is Eric Dale, head of risk management. Dale’s attempts to speak about the implications of a model he is working on are ignored. On his way out, he gives a flash drive containing his work to Peter Sullivan, an associate in his department, warning him to “be careful.” Sullivan, intrigued, works after hours to complete Dale’s model.
Sullivan discovers that the assumptions underpinning the firm’s present risk profile are wrong; historical volatility levels in mortgage-backed securities are being exceeded, which means that the firm’s position in those assets is over-leveraged and the debt incurred from those over-leveraged assets will bankrupt the company.
The title comes from a finance term for when an investor must increase the securities or other assets used as collateral for a loan when their value falls below a certain threshold.
The film stars a stellar ensemble cast consisting of Kevin Spacey, Paul Bettany, Jeremy Irons, Zachary Quinto, Penn Badgley, Simon Baker, Mary McDonnell, Demi Moore, and Stanley Tucci.
We have to tell you, this film was so good, we watched it three times in a row. It checked all of the boxes.
It was absolutely well-acted, it was entertaining and most important, it explained Wall Street and the companies that joust there in ways we really didn’t understand before. It was very educational without being a documentary,
We highly recommend that you watch it.
Let’s walk over to the bookstore.
Understanding Wall Street, Fifth Edition Paperback – October 13, 2009
By Jeffrey B. Little (Author)
“For over 30 years this comprehensive, easy-to-read guide has served well as the definitive reference for successful investing. Now in its fifth edition and completely updated, Understanding Wall Street helps investors prosper in today’s challenging economy―whether you’re just beginning or among the millions soon to retire.
Understanding Wall Street, Fifth Edition, has new sections and information on the issues most important to today’s investors, including:
- How to use the Internet as an investing tool
- The shift to exchange traded funds (ETFs)
- The link between Wall Street and Main Street
- The Risks and rewards of the global economy”
A classic. Well-stated.
Even if you do not invest, yet, it is important to understand how Wall Street works and how, not only our economy, but the world is affected by it.
You can do that by reading books on the subject matter or watching entertaining movies.
Either way, we suggest you do it.
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OPENING PHOTO By-Master1305-Shutterstock-photo-credit-Editorial-use- Femcompetitor.com, grapplingstars.com, fciwomenswrestling.com, fcielitecompetitor.com, fciwomenswrestling2.com
https://en.wikipedia.org/wiki/Too_Big_to_Fail_(film)
https://en.wikipedia.org/wiki/Emergency_Economic_Stabilization_Act_of_2008
https://en.wikipedia.org/wiki/Lehman_Brothers
https://scholarsarchive.byu.edu/cgi/viewcontent.cgi?article=1263&context=marriottstudentreview
https://en.wikipedia.org/wiki/Emergency_Economic_Stabilization_Act_of_2008 https://en.wikipedia.org/wiki/Margin_Call \https://www.fciwomenswrestling2.com
https://www.fcielitecompetitor.com/
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