Archive for the ‘Economics’ Category

The crisis of credit visualized.

The above video is by Jonathan Jarvis, an interaction & media designer who specializes in taking complex situations and making them intelligible through motion graphics. I’ve seen the credit crisis explained in many ways over the past couple years, but nothing this succinct and clear-cut. It is – in a word – brilliant.

So take 11 minutes and have a gander – I promise you one thing; the credit crisis will make WAAAY more sense.  You’ll even be able to wrap your head around difficult topics like Collateralized Debt Obligations, Credit Default Swaps, and Bond Risk Tranches without having to get a finance degree.  In the end it demonstrates that this market meltdown (like most market meltdowns) is caused by one thing: greed.

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Nick Mallory is an active loan officer in Portland, Oregon.  Have any questions or comments about this post?  Visit the contact page and drop Nick a line.