Visualizing the Credit Crisis in Terms We can Understand
This 11 minute video does a great job of explaining what happened to the credit/mortgage market.
Palm Coast, FL – July 26, 2010 – GoToby.com reader Michael Chiumento sent this video clip to share with my readers. It does an excellent job of explaining the credit crisis in terms most of us can understand. While the complex process becomes clearer, the amount of money involved exceeds my ability to comprehend. Some of the terms explained are:
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Subprime lenders
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Collateralized Debt Obligations
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Credit Default Swaps
Visualizing the Crisis of Credit
The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.
Everyone needs to understand how we got here!!!
Thanks to Michael for sharing the excellant video that needs to be viewed by all!! It is well done and simplifies the understanding of a very complex condition that grips our nation, as well as, other nations around the globe. If you understand the concepts that are discussed, you will then understand that we are nowhere near a resolution of the problem. This is a self-feeding deflationary spiral that must be played out until the values of housing are taken down far below
‘fair values" to compensate for the extreme overvalues that existed during the massive "bubble". That is the way "free markets" work, they swing to extremes on both ends and equilibrium is only hit for a short time until the swings start again. When the government gets involved to try and stop this natural momentum, it only exacerbates the problem by "kicking the can down the road" and making the ultimate solution that much more painful– that is what is still to come!!!