Thursday, February 26, 2009

Simple Explanation of the Credit Crisis

We keep hearing news from people losing their homes to banks needing more capital. One thing I keep hearing over and over again is “It’s so amazing that these mega corporations (banks) can get into so much trouble” but seldom does anyone ever explain why this whole mess happened.

Yesterday, I found these clips trying to explain the whole credit crisis from the start. While it’s simplified in many ways, it does a great job in painting the overall picture and definitely worth spending 10 minutes to watch.

Now, we all have to pay for the mistakes made for years (perhaps decades) to come.


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