For This Assignment You'll First Watch The Academy Award Win

For This Assignment Youll First Watch The Academy Award Winning Docu

For this assignment, you’ll first watch the Academy award-winning documentary film “Inside Job” (2010), directed by Charles Ferguson. After viewing the film, you’ll post a word response to the questions. What was your personal reaction to the content of this film? Analyze and describe the ethics of at least two of the principals in this film, using concepts from Chapters 4 or 5 of our text. What caused these individuals to either act ethically or unethically? What – if anything – do you think can be done to prevent a crisis similar to 2008 from happening again? What role might the government have in a solution? What reforms might you suggest?

Paper For Above instruction

The documentary “Inside Job” offers a compelling and disturbing insight into the financial crisis of 2008, exposing the systemic corruption, greed, and unethical behaviors that precipitated one of the most significant economic downturns in modern history. Watching this film elicited a mixture of anger, disappointment, and a reinforced understanding of the importance of ethical practices and regulatory oversight in finance. The film demonstrates how a combination of deregulation, conflicts of interest, and unregulated risk-taking by key individuals and institutions contributed to the collapse of the global economy. This reaction underscores the critical need for ethical integrity and proper oversight to prevent such crises.

Analysis of Ethical Principles of Key Individuals

In understanding the behaviors depicted in “Inside Job,” it is essential to analyze the actions of specific principals from an ethical standpoint, primarily drawing on concepts from Chapters 4 and 5 of our textbook, which focus on ethical theories such as utilitarianism, deontology, and virtue ethics. Two notable figures in the film—John Paulson, a hedge fund manager, and Alan Greenspan, former Federal Reserve Chairman—serve as exemplars of contrasting ethical behaviors.

John Paulson’s actions during the lead-up to the financial crisis exemplify unethical behavior rooted in greed and a lack of consideration for the broader societal impacts. Paulson’s strategy involved betting against the subprime mortgage market, which, while legal, was motivated by the pursuit of personal profit at the expense of the stability of the financial system. His actions align with an egoistic or self-interested ethical perspective, where personal gain outweighs social responsibility. From a deontological standpoint, Paulson’s practices could be viewed as ethically questionable because they involved exploiting systemic weaknesses for individual benefit without regard for the potential harm inflicted upon millions of homeowners and investors.

In contrast, Alan Greenspan’s conduct, as portrayed in the film, reflects a complex ethical dilemma. Greenspan’s advocacy for deregulation and belief in free-market efficiency demonstrate a reliance on principles of utilitarianism—believing that minimizing government intervention would promote the greatest economic benefit for society. However, his failure to recognize or act upon the systemic risks posed by deregulation, and his subsequent acknowledgment of the “flaw” in his judgment, suggest a lapse in virtue ethics—specifically, a deficiency in humility, prudence, and accountability. Greenspan’s actions, driven by a faith in market self-regulation, ultimately contributed to the crisis, highlighting the ethical implications of misplaced trust in unregulated markets.

Causes and Ethical Failures

The root causes of unethical behaviors in the case of Paulson and Greenspan stem from conflicts of interest, excessive risk-taking motivated by personal or institutional profit, and a failure to uphold fiduciary duties or social responsibilities. These individuals prioritized short-term gains over long-term stability, exemplifying a rent-seeking attitude common in financial elites. Their actions reflect a disregard for the ethical principle of non-maleficence—avoiding harm—and a neglect of the broader societal impact.

Preventative Measures and the Role of Government

To prevent recurrence of such a crisis, comprehensive reforms are necessary. Strengthening financial regulation, ensuring transparency, and establishing stricter oversight of financial products and practices are critical steps. Implementing measures like the Volcker Rule, which limits proprietary trading by banks, and creating an independent body responsible for monitoring systemic risk could mitigate reckless behaviors. Additionally, fostering a culture of ethical responsibility within financial institutions through education, corporate governance reforms, and enforcement of ethical standards is vital.

The government can play a pivotal role in these reforms by enacting stricter regulations, enforcing accountability, and ensuring that financial practices align with societal interests. Moreover, promoting financial literacy among the public and ensuring robust consumer protections can help mitigate the impacts of unethical behaviors. International cooperation to establish global standards for financial ethics and transparency is also essential given the interconnectedness of global markets.

Conclusion

The film “Inside Job” serves as a stark reminder of the devastating consequences of unethical behavior in the financial sector. By analyzing the actions of individuals like Paulson and Greenspan through ethical frameworks, it becomes evident that personal interests often trump societal good, leading to catastrophic outcomes. Prevention requires a combination of robust regulation, a culture of ethical responsibility, and proactive government intervention. Ultimately, fostering integrity and accountability within financial institutions is crucial to safeguarding economic stability and preventing future crises.

References

• Ferguson, C. (Director). (2010). Inside Job [Film]. Sony Pictures Classics.
• Boatright, J. R. (2013). Ethics and the Financial Industry. Oxford University Press.
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• United States Senate (2011). Wall Street and the Financial Crisis: Anatomy of the Crisis. Washington, D.C.: US Government Printing Office.
• Siegel, J. J. (2012). Stocks for the Long Run (5th ed.). McGraw-Hill Education.
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• Heath, J. (2009). Morality, Competition, and the Financial Crisis. University of Virginia Law Review, 95(7), 2007-2054.