"The Crisis of Credit" visualized by Jonathan Jarvis ...A Must Watch!

[KoKo]

I don't know if this has been posted before, but it's worth a second time for those who might have missed it.

Best visualized explanation of the World Credit Meltdown (Toxic Assets, CDO's, CDS's and all the other jargon) and how it all connects with the mortgages and Greenspan and low interest rates plus hedge funds and insurers.


http://crisisofcredit.com/

I just sent this off to my Repug Relative who is blaming "poor welfare queens" for the worldwide meltdown.

[BlooInBloo]

1. Was pretty good, except for two things..

1) Video leaves it a mystery why prime foreclosures have outpaced subprime (it's clear the maker is hot to blame the unwashed subprimers for the whole mess).

2) Walkaways are nothing more than anecdote.

[Still Sensible]

4. I agree, and it didn't make it clear enough

IMO that basically the whole thing came down to bankers inventing this new way to make money out of thin air. The presentation certainly hints at it, but as you say, seems to blame the sub-primes... AND DOES SO without making it crystal clear that one of the biggest drivers in this scheme was that de-regulated bankers and hedge funds were promoting (heavily marketing) these risky loans to gullible people because, in their greed, they found this new way to make money. Predatory lending was the single most significant factor.

They were playing hot potato among themselves and the ones left holding that potato when the crash came are the ones we have seen fail or the ones in big trouble now. As usual, while the bankers, investors and hedge funds have an incredibly high volume of toxic debt, the real victims are the rest of us--the homeowners, taxpayers, and jobless who are the "collateral damage" from this nightmare.

[BlooInBloo]

5. Yup - hiding deregulation's role in creating the "shadow banking system"...

was pretty shitty of the video maker too.

[elocs]

2. I think I saw it here yesterday and before, but this is a better to watch version. n/t

[ayeshahaqqiqa]

3. This really explained the problem

I didn't realize that Greenspan's actions on T-Bonds were such a big factor in starting the problem. Thanks for posting this!

[Tommy_J]

6. Kicking

That's an excellent summary. Thanks for the link

[KoKo]

7. I hope many more folks will view this. It doesn't answer everything...but it's a Primer

to get those who can't understand it all in the basics (most of us who aren't math majors or wired in to the financial machinations of the past decades) to a least have a basic "Elementry School grasp of the acronyms and basics of what was going on.

I hope Jonathan will do a new graphic to explain what happened when those tranches were hacked into many more parts and sold off as worse. He did a great job of the basics...and stuff we can send to our RW Friends a Family so they can connect a "few dots," though.