This has been floating around my inbox for a few days – good weekend watching, I think, and even suitable to forward to Mom when she starts asking you what happened when Wall Street started chugging absinthe:
The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.
Carsten // Feb 28, 2009 at 4:09 pm
even though technically OK demonstrated, I missed the part where legislators pushed half-public banks (fannie and freddie) into sub-prime-mortgages, creating this industry in the first place. i.e. only the capitalistic side of the cause and not the socialistic side of it is shown.
Carsten // Feb 28, 2009 at 4:13 pm
oh, and here a good link to the further explanation (couldnt do it better): http://equityprivate.typepad.com/ep/2009/02/dare-ye-inquire-concerning-such-a-wretch.html
Jason // Feb 28, 2009 at 5:23 pm
Is this the “blame the Community Reinvestment Act” part of the show? Because this is when I like to get up and go poop.
Carsten // Mar 1, 2009 at 4:06 pm
yeah, this is what socialists usually do when it comes to real arguments
No seriously, BOTH parties, banks and governments did a really bad job after my opinion. Just blaming one of them is the best recipe to have the next bubble just starting (i.e. pushing too much cheap money in the market as it is happening right now and what already caused this desaster after the tech bubble as explained in your promoted video).
Jason // Mar 1, 2009 at 4:25 pm
Those wacky socialists in Canada are being SO smug right now, it makes it hard not to want to join them in their icy regulatory paradise.
One of the biggest contributors wasn’t so much either regulation or deregulation, it was the inconsistency. If you’re going to put rules on Fannie and Freddie mandating the kinds of mortgages they have to buy, there have to be tighter controls on the types of mortgages that can be written, for example. Or vice-versa, if mortgages can be created just however, then Fannie and Freddie need the freedom to keep crap off their books.
Or we just need to go back to the barter system.
carsten // Mar 2, 2009 at 5:14 am
good point! I would prefer the free market – no bailouts alternative which has beaten any system in human rights and prosperity so far (the first part is often overseen, unfortunately…)