As a financial adviser, I have two very different thoughts on "Too Big to Fail".
First, I was fascinated by the human element - the relationships between decision-makers, the communication, the uncertainty, the failings and doubts we all possess. We all read the headlines, but rarely are we given even the slightest insight about the decision-making processes that affect us all.
Second, and unfortunately, the story is told with such obvious omissions and distortions that it is clear writer Andrew Ross Sorkin not only carries a partisan grudge, but made little attempt to hide that grudge in the script. Just a few examples of many:
1. One clear "villain" of the meltdown was the American consumer - those who willingly purchased homes they quite well knew they couldn't afford, took advantage of 125% refi's to pay off credit cards so that they could run them up again, tapped into their equity for trips, cars, boats and other goodies, etc. Instead, they were clearly portrayed as victims, and the only time a reference is made to them is when the biggest villain in the film, Dick Fuld, is scoffing at them.
2. Legislators Barney Frank and Chris Dodd, who are documented to have made errors in judgment leading up to the crisis, are portrayed as having absolutely nothing to do with it, completely stunned that this was happening - worse, they come off as passionate defenders of the people. Only someone who knows absolutely nothing of this crisis would fall for this. Come on, Mr. Sorkin.
3. Then-SEC Chairman Christopher Cox, the highest-profile Republican in the story, is portrayed as a bumbling, indecisive, oafish fool. If the rest of the film were not so left-leaning, this portrayal may not have been so obvious. Instead, it falls right in line with the rest of the partisan approach.
4. When assistant Michele Davis asks why regulators failed to notice and act upon the blatant problems in the mortgage industry, Hank Paulson sheepishly responds, "because we were making too much money." What?! The federal government failed to do its job because some people were making a lot of money? Wouldn't an indictment of such magnitude warrant a much larger inspection during this movie? Instead, it's just passed off as "greed". Astonishing.
5. Blame for the entire economic meltdown is placed in one place, and one place only: Those Evil Banks. Not one ounce of blame (outside of the ridiculous statement in #4, above) is placed on the massive failure of regulators to do their job; on the consumers who willingly signed on the dotted line, on the bureaucrats from both parties who pushed Fannie Mae and Freddie Mac to make bad loans in the interest of "fairness."
I could go on. In short, partisan politics (from BOTH sides) have so polluted our everyday culture that it's now impossible to believe anything you hear, read or see. "Too Big To Fail" is a vivid example.
Here's the problem: This film had a chance to teach us critical lessons about the financial meltdown. An accurate approach could have served as a road map for the future, a warning siren to everyone from politicians to Wall Streeters to regular citizens on the dangers of personal greed, of poor political leadership and of the need for more effective regulation of financial markets.
Instead, it's just another political statement disguised as "fact". What a shame.
.
First, I was fascinated by the human element - the relationships between decision-makers, the communication, the uncertainty, the failings and doubts we all possess. We all read the headlines, but rarely are we given even the slightest insight about the decision-making processes that affect us all.
Second, and unfortunately, the story is told with such obvious omissions and distortions that it is clear writer Andrew Ross Sorkin not only carries a partisan grudge, but made little attempt to hide that grudge in the script. Just a few examples of many:
1. One clear "villain" of the meltdown was the American consumer - those who willingly purchased homes they quite well knew they couldn't afford, took advantage of 125% refi's to pay off credit cards so that they could run them up again, tapped into their equity for trips, cars, boats and other goodies, etc. Instead, they were clearly portrayed as victims, and the only time a reference is made to them is when the biggest villain in the film, Dick Fuld, is scoffing at them.
2. Legislators Barney Frank and Chris Dodd, who are documented to have made errors in judgment leading up to the crisis, are portrayed as having absolutely nothing to do with it, completely stunned that this was happening - worse, they come off as passionate defenders of the people. Only someone who knows absolutely nothing of this crisis would fall for this. Come on, Mr. Sorkin.
3. Then-SEC Chairman Christopher Cox, the highest-profile Republican in the story, is portrayed as a bumbling, indecisive, oafish fool. If the rest of the film were not so left-leaning, this portrayal may not have been so obvious. Instead, it falls right in line with the rest of the partisan approach.
4. When assistant Michele Davis asks why regulators failed to notice and act upon the blatant problems in the mortgage industry, Hank Paulson sheepishly responds, "because we were making too much money." What?! The federal government failed to do its job because some people were making a lot of money? Wouldn't an indictment of such magnitude warrant a much larger inspection during this movie? Instead, it's just passed off as "greed". Astonishing.
5. Blame for the entire economic meltdown is placed in one place, and one place only: Those Evil Banks. Not one ounce of blame (outside of the ridiculous statement in #4, above) is placed on the massive failure of regulators to do their job; on the consumers who willingly signed on the dotted line, on the bureaucrats from both parties who pushed Fannie Mae and Freddie Mac to make bad loans in the interest of "fairness."
I could go on. In short, partisan politics (from BOTH sides) have so polluted our everyday culture that it's now impossible to believe anything you hear, read or see. "Too Big To Fail" is a vivid example.
Here's the problem: This film had a chance to teach us critical lessons about the financial meltdown. An accurate approach could have served as a road map for the future, a warning siren to everyone from politicians to Wall Streeters to regular citizens on the dangers of personal greed, of poor political leadership and of the need for more effective regulation of financial markets.
Instead, it's just another political statement disguised as "fact". What a shame.
.