Understanding the Credit Crunch
It's difficult to get to grips with exactly how those in charge of the main financial organisations have made such a mess - and also difficult for us to admit that nearly everybody has played a part (anyone who has bought a house in the boom, remortgaged their house, taken on debt to fuel simple consumption, etc etc).
In fact, it's come to light that the bankers didn't really understand it all at the time either!
So for those of us who want to understand why we're in the situation we're in I've gathered together some of the best explanations from across the web.
The video above is called 'The Crisis of Credit Visualised' and is a quickfire, well crafted explanation.
This one is more of an expert classroom overview:
And then if you want to delve in a bit deeper, here's an episode of the American radio programme This American Life, which delves into how banks created the mess - and how it might be solved. It's brilliant.
Click For RSS Feed
Post new comment