We’re still suffering from the 2008 financial meltdown, and its legacy is one of the defining themes of the upcoming election. Yet most voters know little more about it than a smattering of jargon about derivatives, subprime mortgages, and foreclosure.
That’s a shame, because it’s a gripping story of compounded lunacy. Here’s my attempt to explain it.
First, if you liked this video then please share it. I worked my ass off putting it together and it’s a wonder my partner didn’t leave me out of neglect.
If you want to learn more, check out Michael Lewis’s terrific and reader-friendly book, The Big Short. That’s the book that made me think, Everyone should know this! and moved me to make the video.
For a shorter, more technical, less story-based explanation, try the International Monetary Fund’s Global Financial Stability Report, April 2008, especially Chapter 2.
When I was struggling with the waterfall animation, this amazing public domain graphic was a huge help.
I pulled data from a number of sources to make the graphs in the video. The attributions in the video are hard to read, so here are the links for the the housing index, the delinquency rate, and total household real estate value.
I’m solely to blame for all but two of the graphics in the video: I adapted the house and the spigot from images at Microsoft’s free clip art site.