Using the method I used to pull films in college, I watched a movie "Too big to fail", English name: Too big to fail. This is a movie that restores the financial crisis in 2008, with the then US Treasury Secretary Paulson as the protagonist, and tells the mediation, games, and finally solutions of various power figures in Wall Street and Washington in response to the risk of financial system collapse. s story.
As a financial rookie, I still feel quite shocked after reading it carefully. At the beginning of the film, like a documentary, it quoted the reports of various American media at that time, "American Dream", "bubble", the subprime mortgage crisis triggered Bear Stearns to sell to JP Morgan at $2 per share, and the bubble burst and then followed. Triggered the two-room crisis and Lehman Brothers was on the verge of bankruptcy. In dealing with these crises, Wall Street's elites thought they were too big to fail. Washington gave the people confidence, let Lehman go bankrupt, and gave the people confidence that the government would not be soft-hearted. Who would have thought that the crisis would spread like a domino. Merrill Lynch could no longer hold on, Goldman Sachs could no longer hold on, and Morgan could no longer hold on. The entire US financial system was facing a crisis of collapse. Geithner figured out a way to consolidate the banks, but how could these predators easily compromise. The climax of the film is that Paulson gave Congressman Nancy the biggest knelt of a Catholic, hoping that the government would support it. In the end, the government forced the commercial banks to inject capital, so that the commercial banks could lend more money to increase market liquidity and confidence in the financial market, so that the financial market would not collapse.
Warren Buffett is mentioned three times in the film. The first time is when Lehman is on the verge of bankruptcy to ask him to buy it, the second time is when Goldman Sachs asks him to inject capital when he can't think of a way, and the third time is when Paulson doesn't know how to convince the bank. Call him for help. There are not many scenes, only three times, but it has become a pillar to boost confidence. It seems that with Buffett, there is confidence. One of the best lines in the film, I think, is when Bernanke persuaded members of Congress. Bernanke said: "My entire academic career has been researched on only one topic, and that is the Great Depression. The cause of the Great Depression was the stock market crash, but what really hit the real economy was the collapse of the credit system. People couldn't borrow money to do anything. You can't sell houses, do business, or buy goods. The credit system can build a modern economy, but lack of credit has the ability to destroy it, quickly and completely. If you don't act boldly and decisively, you will repeat the Great Depression of the 1930s. And this time it’s going to be worse. If you don’t do it now, the economy will collapse on Monday.” And just like that, they persuaded Congress to pass a $125 billion rescue package with a three-page bill. I think this passage profoundly expresses the core issue of the financial crisis, both at home and abroad. The US government only poured money into the market to buy toxic assets after the collapse of Lehman. Because if it is only expected that financial risks will occur, the ultimate weapon will be used and the government will enter the market. This decision is very difficult. Therefore, looking at the current stock market crash in China, there is only one reason for the state to rescue the market: do everything possible to avoid the coming of China's Lehman moment and prevent the stock market crash from turning into a systemic financial crisis. Does this film have some warning effect on the stock market crash? The top priority of the stock market crash must be to boost public confidence and enhance market liquidity. If the stock market, the housing market, the real economy and the banking system are all in crisis, the next hit is definitely the exchange rate. Then China is already standing on the eve of the financial crisis... In China's economic environment, the central government has made a big move to rescue the market, obviously seeing the signs of a huge crisis in the financial system, and must ensure that no systemic risks occur. It also means that the central government recognizes the importance of the capital market to the national economy and must ensure the transformation of financing methods to support the transformation of the real economy. From a deeper level, the purpose of maintaining the credibility of the ruling party is also achieved by stabilizing the stock market. We all hope to win in this financial defense battle, but how? We still have to wait and see with good wishes and confidence...
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