Overdose: The Next Financial Crisis

138 minutes 7.8/10 based on 13 votes

Many economists believe that the biggest economic crisis of all times is still on its way. This award winning film opens our eyes to what is really going on globally when it comes to the financial situation.

The story began on September 11, 2001 when the terrorists struck down the World Trade Center towers. They knew exactly what they were doing by attacking the very symbol of the global economy. Their timing was also well thought out; the Dotcom bubble had burst and the United States was already slumping slowly into a recession.

In the spring of 2001 the Federal Reserve began lowering interest rates to save companies on the brink of bankruptcy and keep unemployment down. This move fostered a bubble that threatened to explode soon. They knew that that was bound to happen; interest rate can’t be kept low for too long, otherwise people will end up doing things they will later regret.

This financial storm began when congress started pushing the idea of home ownership for all, even those who weren’t able to make down payments. To many, it seemed like a smart move: there had just been a terrorist attack and after all, nothing feels safer than owning your own home.

Low interest rates and cheap loans encouraged people who already owned their homes to buy bigger properties. Then the housing prices went up and many were encouraged to take out second mortgages to fund consumption. Cars, clothes, and vacations were at the top of their lists.

Two government sponsored enterprises— Fannie Mae and Freddie Mac— appeared on the scene and helped create the mortgage system. At the same time they increased their commitment to minority markets.

Then when the poo hit the ceiling, the government’s solution consisted on granting some of the biggest financial stimulus packages and bailouts ever seen in history.

The government’s strategy never really solved the problem. It was like giving alcohol to a drunk: it doesn’t help him get sober; it just sets him up for a bigger hangover. This is what happens when the government tries to protect investors and consumers from facing the consequences of their own decisions.

When a few experts predicted the 2008 financial crisis, they were laughed at viciously. Many stated that the predictions were too gloomy. We all know who was right then. The truth is that change is still possible, but it needs to be done soon because time is of the essence.

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  • awful_truth

    There is no doubt that a global economic collapse is on the horizon. It is not a question of if, but a question of when. Most of our greatest mathematicians are no longer working in physics, but in economics, trying to come up with a better algorithm in an attempt to stabilize the global economy. John Nash (a beautiful mind) was given a Nobel Peace prize for a mathematical model known as game theory. When questioned about it, even Nash admits that too much expectations were placed upon it, whereby even he could predict the flaws. The bottom line is there is too many people on a finite planet, with an economic model based upon continuous growth, and greed. Until this paradigm is altered, our destruction is assured. This is fine for the psychopaths who profit from it, and care only for short term greed. For everyone else, oh well, you figure it out!

  • Lloyd Albers

    I’ve written about this before, money is a tool used to control, used by the powers that think they be to control every mind on the planet. Money is just printed out of thin air. Think about this, banks and governments commit fraud because money is worthless, just a push of a button on a computer, why are these institutions not charged, the Judiciary is just as corrupt, [send the fox to investigate the hen house]. The whole world is on the verge of becoming bankrupt, follow the situation in Greece, Switzerland. Euros are being printed to cover these large debts in Europe, America, doing the same, but when you print this money, it becomes a debt, [you can’t borrow your way out of debt]. I think the USA, and the world wants to get rid of their money because of their debt, which is impossible to repay. I think these governments want a crash in order to accomplish their new agenda, which will be the NEW WORLD ORDER, one government one money and one religion. The only protection will be to refuse to take part in this system. Money, Government, Religion is not bad, if it’s used to help people live rather oppress, but this is long gone. So the bottom line is in our hands, not theirs. What do you think?

  • T.Procopio

    When Pope Francis was asked what he thought of his predecessor Pope Pius XI’s “strong and prophetic words” about the international imperialism of money. His response: “Pius XI only sounds extreme to those who feel struck by his words and hit where it hurts by his prophetical condemnations.”

    What are those “prophetical condemnations,” and who should feel struck by them? In 1931, after the Great Depression, Pius XI wrote in his encyclical Quadragesimo Anno (The Reconstruction of the Social Order):

    “In the first place, it is obvious that not only is wealth concentrated in our times, but an immense power and despotic economic dictatorship is consolidated in the hands of a few, who often are not owners but only the trustees and managing directors of invested funds, which they administer according to their own arbitrary will and pleasure. This dictatorship is being most forcibly exercised by those who, since they hold the money and completely control it, control credit also and rule the lending of money. Hence, they regulate the flow, so to speak, of the lifeblood, whereby the entire economic system lives, and have so firmly in their grasp the soul, as it were, of economic life that no one can breathe against their will” (105-106).

  • Faust

    Money isn’t simply a tool of oppression. The fractional reserve banking system was the single most efficacious act of magic worked by man. The fractional reserve allows us to create something out of nothing – it is money in its purest form – conceptual and born of idea-space.

    Note that money itself cannot compel oil to pour forth from the ground. It cannot refine that oil or transmute it into hydrocarbon based polymer chains. It cannot mold those polymers into casings and regarding the chips that such a casing might contain; of course money holds no sway over elemental silicon or the arcane practice of etching microscopic Boolean logic onto its surface with focused beams of electromagnetic radiation.

    Human minds however. Like the magical fractional reserve; are of idea-space. A human mind can be moved by that which doesn’t exist – especially as the results of obtaining money are so clearly visceral. Without a system of banking that allowed for something from nothing, we would likely not have computers, we would not have gone to the moon. Magical money allowed us to extend our reach, but it is a chaotic magic that is somewhat viral and utterly out of our control.

    The earth and the human lives upon it, used to be shaped by natural forces. Tides, weather, geological uprisings and tectonic shifts. The force that now exerts the most control over the world and its denizens is money. An unnatural force run rampant. It has one desire and that is to propagate.

    A most magnificent Faustian pact then.

  • harvey111

    this film should be clearly dated so that it either earns (or fails to merit) credibility by the way things evolve over time.

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