The Crisis of Credit Visualized

An explanation of the credit crisis of 2008 quickly leads to the introduction of some terms and concepts that require extensive explanations. Acronyms are used such as CDOs and CDS that are very important to understanding of what happened yet rarely understood by someone the first time they are heard. It becomes understandable how even regulators at the time were not fully aware of what was going on around them and what securities they were rating.

It is refreshing to take a step back at times and look at the bigger picture of what transpired in terms that are simple to understand, starting from the very basics. A video titled “The Crisis of Credit Visualized” regards some of the most important issues to an understanding of the crisis in a very efficient manner. The links between banks, households and government are clearly outlined in ways that are visually appealing. 

For readers who find this valuable, be sure to have a look at the movie Inside Job directed by Charles Ferguson as well which tackles similar issues in style more of a documentary. Such videos may often leave one with a feeling of frustration, perhaps a feeling of being powerless against big institutions and banks that seem to have an impact on the daily lives of ordinary people. The key to affecting change however is to gain understanding of what is actually happening. This video and Inside Job serve as an excellent basis upon which to build such knowledge.

Further Reading:

http://www.investopedia.com/articles/basics/09/understanding-bailout-acronyms.asp#axzz1fNVHisJ3