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The Crisis of Credit Explained (in easy-to-understand terms)
I am an educated person. I understand and manage my own finances, as well as those of a successful business. But when it came to understanding the current “mess” our economy is in, I’ll admit that I had more than a little bit of difficulty.
While it was obvious that the economy was heading in the wrong direction, it was difficult to understand exactly why it had happened, and why it seemed to happen so quickly. All of the pundits and news anchors were talking about things like credit default swaps and derivatives… and not being involved in the financial industry myself, I felt really uninformed about how all of these things worked.
Until I found this…
Like many things I enjoy and pass along to friends and colleagues, this video came to my attention on Mental Floss. Now, watching this video will not make you a financial genius, but I know for certain that it cleared a few things up for me. I’ve forwarded it on to many of my friends, as I think it illustrates things in a way that everyone can understand.
Apr 07, 2009
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