I always like finance explained simply and quickly, and here’s a good one, possibly the best I have ever seen.
Two problems – first, the focus on sub-prime is a little out of date, the problems for the last year have been much broader – corporates, sovereigns, LEHMAN! AIG etc.
Second, it’s great being wise, but is it so great to be wise after the event? We might learn some lessons from history, but I do suspect the lesson here – that CDOs and subprime do not really work together – have already been learned.
(And can we stop blaming investors solely for subprime - there was politics in here too.)
6 hours ago