If you want a really simple explanation of the origins of the subprime crisis download this cartoon presentation. I don’t know who did it, but it’s brilliant, funny, and accurate. It was made by someone who was involved in the business.
I can’t do any better than this.
Click this link and download the PowerPoint presentation and enjoy. Click “Save” when the prompt comes up. No viruses here, so don’t worry.
It is good to see you have dedicated blog on subprime crisis. Nice info and the cartoon is too good. I have written one article on What is Subprime crisis?. Please read it and post me the feed back.
Krishna:
Thank you for reading my blog. I read your blog article on the subprime crisis. The dot.com crash was part of the reason for the subprime collapse. Our central bank inflated the money supply to try and stop the dot.com recession. That fueled the housing boom. Like any credit bubble, it has to burst at some point. Home prices declined and continue to decline and securitized assets based on housing also declined. That’s the root of our problem.