The Crisis of Credit Visualized

The following is a simple and clear explanation of the credit crisis in the shape of a visual guide. Jonathan Jarvis walks you through every step of the problem, from sub-prime mortgages to the economic recession end state.

Says Kalim Kassam:

This attractive video, a thesis project of art student Jonathan Jarvis, provides an impressively clear explanation of the credit crisis, tracing it's origins in low interest rates through interwoven homeowners, mortgage markets, investors, and complex financial instruments.

Though the story it tells is quite accurate, the video doesn't attempt to put forward a full causal explanation linking together all the elements; if you're looking for a hint about the wherefores, keep your eye on the market-distorting effects of easy money and loose credit during the boom period.

The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

The More Right You Are, The Harder The Idiots Will Laugh At You

Peter Schiff understood the American economy. He predicted the burst of the real estate bubble almost two years before it happened. He extended his prediction to include credit when everybody was calling it a "minor blip" for the economy. And while he was warning America, America was laughing at him.



A little information on the man for those who don't know him:

Peter D. Schiff (born 1964) is the president of Euro Pacific Capital Inc., a brokerage firm based in Darien, Connecticut. Schiff adheres to the principles of the Austrian School of Economics and the Ludwig von Mises Institute. Schiff frequently appears as a guest on CNBC, Fox News, and Bloomberg Television and is quoted in major financial publications.

Schiff points to the low savings rates of the United States as its worst malady, citing the transformation from being the world's largest creditor nation in the '70s to the largest debtor nation at the turn of 2000. His extremely bearish views on the U.S. Dollar, the United States stock market, bond market, and the United States economy have earned him the nickname "Dr. Doom."

H/t Paul Hsieh