Inside Job Transcript - Final Version - 9.30.10 - Sony Pictures Classics

Inside Job transcript – Sony Pictures – September 2010 45
CHARLES FERGUSON: Excuse me, you can't be serious. If you would have looked,
you would have found things.
FREDERIC MISHKIN: Uh, you know, that's very, very easy to always say that you can
always find it.
01:59:44.15
NARRATOR: As early as 2004, the FBI was already warning about an epidemic of
mortgage fraud. They reported inflated appraisals, doctored loan documentation, and
other fraudulent activity.
In 2005, the IMF's chief economist, Raghuram Rajan, warned that dangerous incentives
could lead to a crisis.
02:00:06.19 Then came Nouriel Roubini's warnings in 2006; Allan Sloan's articles in
Fortune magazine and the Washington Post in 2007; and repeated warnings from the
IMF.
02:00:18.02
{DOMINIQUE STRAUSS-KAHN
MANAGING DIRECTOR
INTERNATIONAL MONETARY FUND (IMF)}
DOMINIQUE STRAUSS-KAHN: I said it, and on behalf of the institution: ah, the crisis
which is in front of us is a huge crisis –
CHARLES FERGUSON: Who did you talk to?
DOMINIQUE STRAUSS-KAHN: The government, Treasury, s-, Fed, everybody.
02:00:27.21
NARRATOR: In May of 2007, hedge fund manager Bill Ackman circulated a
presentation called "Who's Holding the Bag?", which described how the bubble would
unravel.
And in early 2008, Charles Morris published his book about the impending crisis.
02:00:46.27
FREDERIC MISHKIN: You're just not sure, what do you do? And you, you might have
some suspicions that underwriting standards are being weakened; but then the question
is, should you do anything about it?