— A buddy of mine just sent me this. It’s a pretty good explanation of the credit crisis, and some nice animation work. The only place I take issue is on the “Turning Point.” I think there’s a good chance the problem could have been self-correcting if the Fed hadn’t held interest rates low while bank demand for credit was increasing. The higher rates would have made CDOs relatively less attractive compared to treasuries for investors, and riskier for the originators.
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thelightdynamic reblogged this from hilker
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jwphillips reblogged this from addam and added:
No comment. The video explains it all. This is why it’s a good time to buy a house too.
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azspot liked this
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addam reblogged this from hilker and added:
I think everyone should watch this. It does a pretty good job explaining what’s happening right now.
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hilker reblogged this from crazynutjob and added:
i need to watch this more. it’s made...far more complicated than i understood.
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crazynutjob posted this
