Having trouble figuring out what the Credit Crisis (ahem, Global Financial Meltdown, Great Depression II, Credit Freeze) really means? Media designer Jonathan Jarvis has created a simple video explaining the situation step by step. There’s no alarmism here, just a straightforward explanation of the financial realities leading to our current, uh, predicament.
Discussed: treasury bills, credit, leverage, how banks make their money, mortgages (uh-oh), mortgage brokers, collateralized debt obligations (major uh-oh), credit default swaps, subprime mortgages, underwater mortgages, and more.
To be honest, there are so many steps involved in these transactions that it’s all a little baffling. But I promise, if you have a cup of coffee and devote ten minutes to this video, you’ll learn something.
See also: Let Public Radio Talk You Through the Financial Crisis.
(Via Daring Fireball.)
Comments (4)
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Thank you! Thank you! Mental_Floss for this finding this video. This presentation has said so clearly and succinctly what the financial talking heads have been trying to say for months in all their financial speak.
posted by soundmaven on 2-27-2009 at 2:02 pm
Now why couldn’t these news station explain it like this? Mentalfloss needs to have their own television station to teach the dummies of the world a thing or two.
posted by Terry on 2-27-2009 at 2:33 pm
Really well done. While simplifying the whole matter, this video leaves the viewer with an accurate model by which to conceptualize the crisis. I hope many more find this.
posted by Alex on 9-11-2009 at 12:03 pm
So very well explained. Excellent
posted by /m2 on 11-23-2009 at 11:52 pm