Friday, February 20, 2009

The Credit Crisis Visualized


Two YouTube videos are making the rounds. In total, they're about 11 minutes long. Watch the videos; give me your thoughts. The videos are described as "short and simple." They are. I'm hoping that the videos, though, will spur discussion here at my blog. Are there any redeeming qualities in the videos? Is it all hogwash? What's missing from the videos?

Video 1 (hat tip Consumerist):



Video 2: (hat tip Consumerist):



Discuss.

23 comments:

  1. Well, that was interesting. The main thing I came away with is that all sub-prime borrowers smoke, drink beer and have 5 kids. Who needs underwriting?

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  3. I have the video on my blog. I liked it...I looked at it to simplify what's going on currently. Vimeo has the vid in full, not in two parts like YT. http://www.vimeo.com/3261363

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  5. Remove the stereotypes, and this might be good for sixth grade studies on finance - in the future world where all children learn about finance and credit starting in first grade and continuing through high school. Because I suspect most people didn't learn at home, as their parents didn't know either. That was certainly true with me.

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  6. When did CDO's start? Was this something that has been around for a while?

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  7. CDOs? Late 1980s -- per Standard & Poor's. Rebirth of CDOs in mid 1990s.

    http://www.scribd.com/doc/12573774/Cdo-Criteria-2002-FINALTOC

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  9. sorry I posted my "lol" comment late. I was laughing at the clutchcargo's comment

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  10. Cool videos thanks for posting them,
    CM, I'm thinking your heart is in the finance world.
    Can I ask why are you studying Law?

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  11. Pane, spent a long time covering the markets. Figured it was time for a change. I know that I can do some good with a law degree. And, for what it's worth, I have enjoyed law school.

    At the same time, I am not foreclosed from returning back to journalism.

    Thanks for asking.

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  12. Pane, and one more thing. I was tired of observing and chronicling the markets. I'm looking forward to actually doing something; looking forward to making my own moves.

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  13. CM, you never really exited journalism ;)

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  14. Great visualization, thanks for posting and I'll share with friends and family.

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  15. I saw these earlier, and I'm a big fan. They're simple, but not too simple. The graphics are great. I still prefer the "This American Life" shows that dealt with the crisis, but I think most people will get more out of these 11 minutes than they've gotten out of the media since this thing began in late '07.

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  16. Nice video.
    This and the last post had me thinking.

    If government decides to keep taking over the mortgage market.

    Would it be impossible to file bankruptcy, file for foreclosure, even Deed in Lieu since you would be owing to the government.
    Would it be a similar situation to how the student loans operate even if you bankrupt you still owe it?

    With government backing of all these toxic mortgages and credit there is no way the government would be willing to forgive majority of it.

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  17. There needs to a be a list of all these media explaining this situation for posterity.

    In order of how I remember them:
    1)This youtube vid.
    2)This American Life on NPR
    3)House of Cards on CNBC
    4)I keep thinking I remember a Frontline doc that went along with the NPR stuff, but I could be wrong. All I know is I saw a House of Cards-like doc on PBS.

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  18. Was it this one, Crlf?

    Secret History of the Credit Card

    http://www.pbs.org/wgbh/pages/frontline/shows/credit/

    That was one of the best ones.

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  19. Would like to see an update or a continuation from the secret History of the credit card. A lot has changed since then...

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  20. I agree, Trev. That's a much-needed follow up.

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  21. It left out the part where Federal and State banking regulators took a long snooze and allowed sound lending practices to be disregarded.

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