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The Crisis of Credit Visualized - Part 1


The Short and Simple Story of the Credit Crisis.By Jonathan Jarvis.Crisisofcredit.comThe goal of giving form to a complex situation like the credit crisis is to quickly supply the essence of the situation to those unfamiliar and uninitiated. This project was completed as part of my thesis work in the Media Design Program, a graduate studio at the Art Center College of Design in Pasadena, California.For more on my broader thesis work exploring the use of new media to make sense of a increasingly complex world, visit jonathanjarvis.comOr email me at jonathan.jarvis@gmail.comSupport the project! Buy a T-Shirt!cafepress.com/crisisofcredit

Channel: News & Politics
Uploaded: November 30, 1999 at 12:00 am
Author: graphixmdp

Length: 07:32
Rating: 4.907741
Views: 789008

Tags: credit  crisis  money  finance  news  explain  how  simple  easy  motion  graphic  mortgage  CDO  securities  documentary  animation  

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madman06911 (November 30, 1999 at 12:00 am)
Credit Crisis What Credit Crisis?
mhyoungbiz (November 30, 1999 at 12:00 am)
There are some inaccuracies. The Fed Reserve doesn't buy or insure mortgages, they are backed by 30 yr mtg bonds issued by the gvmt. Fannie and Freddie bought a large portion of the prime loans, and not at 1%, but more like 5-7%. The 1% fed rsrv cost made it cheaper to buy and move money overnight for the banks, lowering their costs, affecting prime rates, tricking down and affecting all rates. It's not a one to one ratio. Greed is a human fault, it knows no political bounds.
mordicus (November 30, 1999 at 12:00 am)
@bigbadwolfeinc After Effects
leklek69 (November 30, 1999 at 12:00 am)
and as far as i know america has an excellent drainage system
leklek69 (November 30, 1999 at 12:00 am)
@valeryon123 how come america is in deep shit right now? where the fuck did all these shit come from
faoust21 (November 30, 1999 at 12:00 am)
the whole capitalist world lives knee-deep in shit,in case you haven't ever been outside the US.I am not stalinist,i am trotskyist,but capitalism has to go.We had enough of that crap.workers democracy,planned economy,sustainable development!
valeryon123 (November 30, 1999 at 12:00 am)
You're right, we should all live knee-deep in shit like they did in Soviet Russia.
emendemon (November 30, 1999 at 12:00 am)
Banks don't BUY anything from the Fed (Treasury Bills come from the "Treasury Department", genius). You lost my interest, stupid YouTube video.
EasyEight88 (November 30, 1999 at 12:00 am)
ALL the normal safeguards of THE MARKET were removed by the government!! With no risk to them, and the Government removing lending standards until all you required was a pulse the housing market become wide open to run away speculation. Fannie/Freddie lowered standards to where they accepted SELF reported income, and DIDN'T CHECK!! Yep, you could make up any income you wanted, they didn't run a credit check!! AND they backed the risky loan with the "full faith and credit" of the US Government!!
EasyEight88 (November 30, 1999 at 12:00 am)
LOL! TheWoodman40 has it right! The FED started this by forcing banks to make the "Risky" mortgages in the video.Once they held Risky mortgages they normally wouldn't have taken, they looked for ways to lemons into lemonade, and the result was the CDO scheme in the video. But the GOVERNMENT drove this, and as Woodman pointed out, GUARANTEED the risky loans through Fannie/Freddie. So combine low interest rates and low-risk (to the banks, not to us) risky loans, and we get the subprime meltdown.