I noticed this video making its way through the blogosphere and thought a few comments could be made regarding the content.
The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.
The video does a great job of simplifying the current banking crisis into understandable terms but it may be a little too simplified. What the video fails to point out is the government enacted legislation used to make banks give out more loans to higher risk borrowers all in the name of lower housing costs.
What happened next was squarely on the banks, the selling of the sub-prime mortgages to investors and investment banks but as borrowers started defaulting on their mortgages, investors started losing money, sending us into the tailspin we are in now.
I like the video, I don’t like fact that it focuses on investors only.