REASONS for this crisis

As a follow up to my previous blog post, I would like you to understand the system behind bad loans that has brought so many companies into turmoil recently. I found a number of videos by khanacademy on youtube, that do a pretty good job at summarising the subprime crisis.

1. http://uk.youtube.com/watch?v=oosYQHq2hwE&feature=related
2. http://uk.youtube.com/watch?v=eYBlfxGIk28&feature=related
3. http://uk.youtube.com/watch?v=q0oSKmC3Mfc&feature=related
4. http://uk.youtube.com/watch?v=XjoJ9UF2hqg&feature=related
5. http://uk.youtube.com/watch?v=8IR5LefXVPY&feature=related
6. http://uk.youtube.com/watch?v=wYAhlTHIBT4&NR=1
7. http://uk.youtube.com/watch?v=aAfMps_VyOY&feature=related
8. http://uk.youtube.com/watch?v=s6UYa2nwaDw&feature=related

The first 3 videos look at Mortgage backed Securities, 4th clip explains CDOs, and remaining 4 videos address housing market and the mortgage system that was at fault. Carefully watch these youtube videos, they explain the problem in its entirety. I found them extremely easy to follow so I'm sure you will as well and maybe even easier.