Saturday, December 13, 2008

Wise Man Say... 08.05

CDOs in a nutshell...

Tuesday, October 21, 2008

Untangling Credit Default Swaps

Credit Default Swaps are sort of the nuclear power of the finance world. They have the potential to be a cheap source of enormous energy but when they go bust, you get this: the financial world's version of Chernobyl:

Uncorking CDOs

Here is a second video from Marketplace that does a pretty good job of explaining the arcane world of Collateralized Debt Obligations or CDOs:

The Credit Crisis Explained

I came across these videos from Marketplace that are perhaps the clearest, simplest illustrations of the credit / financial conflagration that started on Wall Street and has now spread around the world. I never actually thought that there was any easy way to explain credit default swaps or CDOs but these guys do a pretty damn good job of it. This is the first video:


The Credit Crisis as an Atlantic Expedition

Tuesday, September 30, 2008

Party like it's 1999

Just so everyone remembers, exactly nine years ago is when this whole merry-go-around started:


In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

   - New York Times, Sept. 30, 1999.