Inside Job Transcript - Final Version - 9.30.10 - Sony Pictures Classics
Inside Job Transcript - Final Version - 9.30.10 - Sony Pictures Classics
Inside Job Transcript - Final Version - 9.30.10 - Sony Pictures Classics
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
<strong>Inside</strong> <strong>Job</strong> transcript – <strong>Sony</strong> <strong>Pictures</strong> – September 2010 46<br />
NARRATOR: By 2008, home foreclosures were skyrocketing, and the securitization<br />
food chain imploded. Lenders could no longer sell their loans to the investment banks;<br />
and as the loans went bad, dozens of lenders failed.<br />
02:01:13.24<br />
GEORGE SOROS: Chuck Prince, of Citibank, famously said that, uh, uh, we have to<br />
dance until the music stops. Actually, the music had stopped already when he said that.<br />
NARRATOR: The market for CDOs collapsed, leaving the investment banks holding<br />
hundreds of billions of dollars in loans, CDOs, and real estate they couldn't sell.<br />
NOURIEL ROUBINI: When the crisis started, uh, both the budha-, uh, Bush<br />
administration and uh, and the Federal Reserve were totally behind the curve. They did<br />
not understand the extent of it.<br />
02:01:47.27<br />
CHARLES FERGUSON: At what point do you remember thinking, for the first time, this<br />
is dangerous, this is bad?<br />
CHRISTINE LAGARDE: I remember very well, uh, one, uh, I think it was a G7 meeting,<br />
of February 2008. And I remember discussing the issue with, with Hank Paulson. And I<br />
clearly remember telling Hank: we are watching this tsunami coming. And you just –<br />
proposing that we ask which swimming costume we are going to put on.<br />
CHARLES FERGUSON: What was his response, what was his feeling?<br />
CHRISTINE LAGARDE: Things are pretty much under control. Yes, we are looking at,<br />
uh, this situation carefully, and uh – yeah, it's under control.<br />
02:02:30.11<br />
{G7 MEETING, TOKYO<br />
FEBRUARY 9, 2008}<br />
HENRY PAULSON: We're gonna keep growing, okay? And obviously, I’ll, I'll say it: if, if<br />
you kee-, keep, if you're growing, you're not in recession, right? I mean, we, w-, we all<br />
know that.<br />
02:02:45.01<br />
{THE RECESSION HAD ACTUALLY STARTED<br />
FOUR MONTHS BEFORE PAULSON MADE THIS STATEMENT.}