I often have people ask me how we got into this housing/mortgage mess and I always wish I had a good visual explanation to just give them. Well Jonathan Jarvis did just that. The below explanation doesn't get into some of the deeper nuances of the CDS markets that sped up the Wall Street crash, but it does a good job of giving a simple explanation of the root of the housing/mortgage crisis. The extended version of this would explain how the credit crisis hurts businesses, causing job loss, fear in the markets, contraction in spending and then further foreclosures and housing depreciation.
The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.
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