The Crisis of Credit Visualized

The Crisis of Credit Visualized does a great job of giving a visualization to the current credit crisis. The description is a little too simplistic, but it’s one of the few I’ve seen that doesn’t point fingers and stays balanced.

(If you think finger pointing is necessary you might see that as a flaw. On the other hand it’s nice to talk about this stuff without seeing the phrase “fucking [name political party here]” on there.)

Worth a look, even if only for the excellent display of difficult concepts visually.

2 responses to “The Crisis of Credit Visualized”

  1. peri_renna says:

    …wow, that makes a lot of sense.

    I wonder where we would have been if we hadn’t wasted all that cash building McMansions.

  2. kirabug says:

    Well, depends on how you want to look at it…. since 1995 we’ve gone through first the dot-com bubble and then the housing bubble. I think it’s safe to say the dot-com bubble’s money (what of it survived) probably fed the housing bubble.

    So if you go back to the S&P 500 Index and look at the max time frame, then ignore everything to the right of 1995 and smooth out the old curve, I think (and this is me eyeballing it) we’d be right where we are now.

    Except everyone would be sleeping better and we probably wouldn’t be worrying about whether there’s still a steep drop to go ;)

    And just to cover my ass, while I do work for a financial company, I’m not licensed to discuss financial matters, which means I don’t really know jack about this stuff. So that’s about all I think I’m allowed to say… and everything I did just say is my opinion and not theirs.

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