The Crisis of Credit Visualized - Part 1

Watch the full version here: http://www.youtube.com/watch?v=bx_LWm6_6tA

The Short and Simple Story of the Credit Crisis.

By Jonathan Jarvis.

Crisisofcredit.com

JonathanJarvis.com

Category:

News & Politics

Tags:

• credit
• crisis
• money
• finance
• news
• explain
• how
• simple
• easy
• motion
• graphic
• mortgage
• CDO
• securities
• documentary
• animation
• financial
• graphics
• economy

[benjaminbenny1]

this should win best animated feature at the academys!

[asuwish0000]

The only thing missing in the video- which is most important -is due to Greenspan's low rates a borrower could get a 4% mortgage loan which will adjust - go up to the market rate- after 3, 5, or 10 years. This is called an adjustable rate mortgage.Greenspan increased the interest rate by more than DOUBLE in under 2 years to 8.25%.This caused even responsible borrowers to default before they could refinance their loans to a decent fixed rate.Also the banks are required by the govt to lend to poor

[ProletarianCPGBML]

Can capitalism save the planet? youtube.com/watch?v=pZsQZU4wdj­s

[StockMarketFunding]

Great job explaining to people in a basic simple to understand manor. If only that was how markets really work, just look at MF Global missing monies as an example. When getting into options, shorts, news, media, tv, governments, ect there is a lot to the story!

[465160]

@465160 the deal broker not WS. "banks"

[465160]

@3:25 they don't always pay it back or atleast in full because some go "Bust!"

[rappelz1337]

Sm.v.

[rappelz1337]

Gqakfjnb

[poikilotherm1]

Yet the US government chooses not to raise taxes on the rich and instead begins cutting funding for successful cost-effective social programs like Planned Parenthood, ironically, doing so will only incur greater costs for the government in the long term. Why the choose not to cut the far larger costs such as the collosal Defence budget I do not know. Unless they are perhaps planning a longer-term solution, one that involves never paying of their debt to China, and using military might to do so.

[poikilotherm1]

This coupled with the fact that the US debt level, i.e. its debt as a percentage of GDP, has reached nearly 100% at $15.176 trillion as of the third quarter 2011, appears to present a slippery slope for the US.

[poikilotherm1]

China is continuing to buy US Treasuty bonds in order to stabalize the dollar, both because China's foreign reserves are in US currency and because the US is a huge market for China and it wants keep the value of the Yuan relatively low to maximise profits from exports.

[poikilotherm1]

But investors worldwide continue to buy US Treasury bonds, China currently holds $1.1 trillion worth of US foreign holdings, and Japan owns $900 billion. China is both telling the US to sort out its debt issue and at the same time is buying US Treasury bonds, thereby incurring the US more debt.