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The Crisis of Credit Visualized

February 20, 2009 by and tagged

A great illustrated version (in two parts) that makes it all crystal clear:

Part One

And Part Two:

Posted in Economy | 2 Comments »



2 Responses to “The Crisis of Credit Visualized”

  1.   Al Bradbury Says:

    I was enjoying this very much until the tail end of the first segment, when the little stereotyped cartoon of the “irresponsible” family with cigarettes and children popped up. We’re actually just talking about lower-income families, right? People got sub-prime rates not because they were shiftless or somehow tawdry, but because they were poor, in a time when houses were getting more and more expensive, out of reach of many working people. And then in the second segment… where does this family go when they abandon their house? I would challenge the narrator’s assertion that all these houses are now “worthless.” Perhaps it’s just a wording issue. The houses may not be nearly as expensive as before; they may no longer be a lucrative investment tool; but, after all, there are still just as many families who need a place to live as there were before, and that’s the intrinsic worth of a house, isn’t it? The impact of this crisis on people’s actual experience of housing, not described here, is that more and more people are pushed into homelessness or into the worst kinds of unsafe rental housing, while whole neighborhoods stand abandoned. In some places, people have begun to fight back and move into emptied houses or refuse to leave them in the first place. I think that’s the right course. It’s time to declare, in the interests of basic decency, that we will no longer tolerate for our access to housing to be bound up with this absurd investment system. Even in the first segment, when the system appeared to be functioning smoothly, where were those enormous profits for investors coming from? Why, from out of the pockets of working people who were paying higher and higher prices for the basic right to live under a roof.

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    •   SocProf Says:

      You’re right and other people had pointed that out regarding the stereotypical presentation. But you could make the same argument when it comes to representing investors… as big a fat, but your point is absolutely valid)

      However, segment 2 explains really well how the successive investments on mortgages (based on greed) ended up creating a time bomb.

      As for “worthless”, it’s clearly meant as market value, not use value or sentimental value. The videos are not about the personal experience but about systemic failures.

      Reply

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