The cause of this economic crisis…..simplified

Amazing how the “invisible hand” could lead the country astray. Free market, with minimal regulation has absolutely caused a greater gap between the rich and the poor. My husband tried to explain the actual root cause  –> he summed up the reason for the US economic crisis to be Asset Backed Commercial Paper (ABCP for short). OK, when his “finance-speak” came to an end my eyes were crossed and the only way I could respond was, “Huh?  I don’t get it”. So, to help simplify things, he sent me this….for lay people like me.

Hopefully, after you view this presentation, it’ll all make sense. And maybe, as Barack Obama has suggested, the big corporations and mortgage brokers should become more accountable for the mess they’ve caused.

If the type is too small to read, please click here to view it on SlideShare.

Comments

  1. Don’t feel bad as I work at a bank here in the UK and had to explain securitisation of mortgages to people I work with. Subprime loans are often called “ninja” loans. No Income No Job.

  2. Andrew, you always were the smart one! That was pretty evident ever since elementary. Thanks for posting.

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