The movie critically analyses the economic system in terms of how it has been subjected to series of crisis caused by misconstrued notion of investment, stability and unrealistic economic models. On the other hand, people want to make huge of amounts of money with little or no physical effort. While human factors impact on the economy, the effect is insignificant compared to the systemic failure to restructure the economic models and policies.
It is unfortunate that some of these economic issues are not taught in schools, and in most cases, the crisis takes people unawares. History is therefore important in order to avoid the mistakes of the past financial crisis. If we pay close attention to history, we will observe that recession is a natural phenomenon which is recurrent in any economy. A risk situation was the reckless lending of loans to people who could not afford to pay the mortgage, and this process is called subprime lending. For example, in 2004, over a third of mortgages required no verification of income, job or assets. Another risk situation is the layering of debt on debt where financial institutions owe other financial institutions. However, the critical risk situation occurs when people are caught up in the euphoria of a bubble of appreciating assets and speculations of an upward trend in the increase in value. Bubbles look attractive, but at the same time, could attract dangerous consequences such as an unexpected burst. Preparation is key to reducing the risk of crisis when speculation, which is gambling in disguise, fails.
When markets seem to be booming, we have a tendency of becoming blind and imagine that the economy will take care of itself without preparing for possible crisis. This is a potential trap which has been modeled into the neo-colonial economic theory, stating that all people are rational; the economy will always find itself at equilibrium; Bubbles simply can’t happen. This has been the popular rhetoric with promises and elegantly told stories. However attractive the stories might be, it does not qualify to be an exclusive model for financial stability.
The nature of human beings in terms of judgment is quite complicated, and an effective approach to fixing the instability issues is a change in the organizational and strategic policies. Therefore, the focus should be on how to redesign the system such that it does not interfere with household funding.
As systems control opportunities for advancement, it is recommended that the systems go beyond their own interest, and support the change initiative through unbiased presentation on historical trends, and investment in the real economy of the 21st century.