This is another one of those 'Recommend this' diaries. I apologize in advance. When the diary that it targets reaches the rec list, I will delete this one.
Ever wonder what the Hell happened in the financial markets? Do you find bonddad, New Deal Dem and Jerome a little dry and too geeky? Well, this diary contains a video that describes the whole financial mess in very easy to understand terms. I only have two critiques:
- The characterization of sub-prime borrowers is a little bit generic. Some people where sub-prime borrowers because that is the only way they could buy a house in the market that they live in.
- The CBO's were highly leveraged. This meant that they were 97% borrowed money and only 3% loans. Which made them highly sensitive to default.