Monday, February 23, 2009

Crisis of Credit - Economics for Dumbies

Thanks to Chief and Spike over at Freedom Dogs for this great link:

Crisis of Credit

It explains the current situation in a simple graphical way. Definitely worth the time.

The possible causes that are discussed in the FD blog include:
  • Greedy investors that demanded better returns.
  • Bleeding heart liberal politicians that demanded that everyone be given a loan for a home.
  • Excessive American citizen's that "needed" that "beyond their means" dream home or just a home.
  • Unethical business people that wanted to get rich by any means possible.
  • Incompetent or self serving regulators.

I vote that we all played a role in this. Take a look and judge for yourself... Then ponder, how do we keep it from happening again, if we get this fixed this time?

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