Another Simple Crisis Explanation

Marketplace Senior Editor Paddy Hirsch uses a only a whiteboard to explain and visualize how CDO's (Collateralized Debt Obligations) became the cornerstone of the credit crisis

Incredibly simple explanations of the crisis and what led to it

With everybody speaking about the economic crisis all day long, I began feeling more and more confused. Despite having taken corporate finance at the University, I moved away from the scientific explanations of the situation and rather preferred a single, truly lame explanation that would fill all the voids. I actually found found two of those, and I am posting them here. I'd be happy if my finance teachers could see this post and use the way of explaining as a lesson.


The Crisis of Credit Visualized



This American Life: The Financial Crisis in 59 Minutes