Capitalism: A Love Story - Essay Example

Another sector was banks and financial institutions, where some of them had to close numerous jobs, lose huge amounts of money and become bankrupts. Though, the main current issue and the problem for the majority of American citizens is where to find enough funds to refinance their existing mortgage in order to make payments more affordable.The main weakness of the movie is generalization and subjectivity in the description. Moore tries to present a unique vision of the problem but describes the crisis as a state problem removed from a particular individual.

Moore describes that under such financial conditions banks in their turn made clampdown on loans with more strict and difficult conditions and terms, which prevented many Americans to loan money from banks to be able to pay mortgages. The increase in prime delinquencies was less severe than the rise in the market, where the prices were falling causing lenders to the clampdown. Still, the question is how an ordinary American is affected? While analyzing the reasons of crisis and what caused such situation, there are several variants and opinions.

Moore dramatizes the situation using examples of state corruption and inability of the Wall Street gurus to change the situation. Still, one of them is that crisis was facilitated by consumer demand, ignorant politicians, spineless banks, in addition to the greedy behavior of the majority of brokers and lenders. Offering different types of problems to American consumers (governmental, conforming and private), financial institutions arrange the loans into risk class portfolios of customers based on their income proof and ability to repay borrowed money.

Uncertainty and improper dealings between small lenders, banks and investors caused the situation where the smaller lenders stopped selling their loans to the larger banks since the last ones were not able to raise money to loan.