One of main sectors to be influenced was real estate when payments largely increased and in some cases became even higher than the value of homes people bought. 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 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 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 market, where the prices were falling causing lenders to 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, oOne of them is that crisis was facilitated by consumer demand, ignorant politicians, spineless banks, in addition to 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. Uncertainly 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. As a result, majority of small lenders became bankrupts. With cascading result financial crisis influenced larger American banks like Bear Stearns and Lehman Brothers who experienced large losses. While it is said to have more opportunities for banks and buyers to cooperate, such new model caused many problems in the financial sector, which led to nationwide crisis.
It is possible to say that Moore selected a simple approach to documentary portraying what he sees in everyday life. Moore appeals to emotions but pays less attention to difficulties and threats affected the American nation. It is obvious that all economic sectors are influenced by the national financial crisis. The whole U.S. economy experienced loss of millions of jobs and billions of dollars. Many small companies were forced to go out of business being unable to compete with their larger competitors who at the same time also suffered from huge financial losses. Banks themselves announced more than $60 billion worth of losses in their quarterly and yearly reports, which, as a result, caused panic on the stock market being influenced now more by the human psychology rather than by the economics and logical thinking. The government of the United States attempts to assist some of the banks saving them from bankruptcy. Only time will show how U.S. will be able to go out of its financial crisis and how American citizens will be able to repay their huge prices