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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{ 5 comments… read them below or add one }
This is really good and clear. Thanks for alerting us of this. It looks like how we got to this is all based on greed. Greed from the homeowner, greed from the mortgage agent, greed from the wallstreet people and greed from the investors.
The videos were great but that voice sounds so familiar! It’s really bothering me that I can’t figure it out.
It’s great to finally know in lament terms what a credit default swap is.
The Video is clear that what makes we got so much trouble to gather “world widely”is because the competitions,Big corporations is struggle to win the competitions,each of them give soft stimulus for the return and then the payee “that actually has no Power to return has same facility and when most NO power payee has no more power to PAY this what happen,
I lost a lot of money in this crisis. It sucks that the wallst people got all the money and they don’t have to pay a cent when everyone else is suffering. I think instead of us paying for the banks bailouts, the wallst execs should pay for it.