The Financial Crisis – How Did it Happen?

26 February 2009

In case you haven’t heard, the global economy is in something we call “a crisis”.

Put your hand up if you know how this crisis got started.

It was all because of greedy investment banks on Wall St.  Right?

Or, maybe it was because of certain lenders within certain banks on Wall St.  Right?

Or, maybe it was all because of housing prices rising out of control.  Right?

Or, maybe it was because of the US Federal Reserve making interest rates too low.  Right?

Or, maybe it was because too many people started buying too many things (like houses) that they couldn’t afford.  Right? 

Or, maybe it was all of the above.

It’s complicated.

Jonathan Jarvis has done a great job of visually explaining the credit crisis in less than 12 minutes.  It’s impressive to see how the creative use of video can help tell a complicated and important financial story.  Watch and learn.

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