The Credit Crisis Explained
Posted on Feb 22, 2009 in Uncategorized
Lakeblawg doesn’t usually re-post from other places. However, this video is extremely well done, if at times over-simplified. Lakelaw does not agree with the 9/11 connection that the video makes.
However, we agree that sustained low interest rates set by the Federal Reserve post-9/11 encouraged bankers and investors to take inordinate risks. Further, fraud, greed and indifference of mortgage lenders in mortgage loan underwriting has to be noted. Finally, for the life of us, we will never understand how bond rating agencies decided that subprime mortgages could metamorphose into AAA securities.
With that in mind, check out this video: