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The Crisis of Credit Visualized

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  • The Crisis of Credit Visualized

    A great animation overview of the credit crisis.

    Link
    ~~ Veritas simplex oratio est ~~
    No matter how far a wizard goes, he will always come back for his hat. --T. Pratchett

    <---- You know you're getting old when you rely on your forum meta-data to remind you how old you are.


  • #2
    Re: The Crisis of Credit Visualized

    Funny video. Very relevant to Frontline thread. Though I would take issue with his explanation of why housing prices started falling... I guess in the second part of the video, the format switches from one of explanation to one of interpretation and opinion.

    Here's one I just found as well:

    Link
    A policy of freedom for the individual is the only truly progressive policy. -F.A. Hayek

    "$250,000 a year won't get me to Central Park West."

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    • #3
      Re: The Crisis of Credit Visualized

      GREAT STUFF>. Informative and well done..
      |TG|ARMA Pathfinder
      ..now where did I put my keys?

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      • #4
        Re: The Crisis of Credit Visualized

        Originally posted by Nikolas View Post
        Funny video. Very relevant to Frontline thread. Though I would take issue with his explanation of why housing prices started falling... I guess in the second part of the video, the format switches from one of explanation to one of interpretation and opinion.

        Here's one I just found as well:

        Link
        You dont agree that the supply so outreached the demand that a price adjustment wasn't inevitable and the supply went so high due to the amount of money that flooded that market? I do think they got a bit to general in the last few minutes, but I wouldn't say the reasoning they gave was wrong, just not complete.

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        • #5
          Re: The Crisis of Credit Visualized

          Great animation, thanks 4 the post.
          Like the server? Become a regular! TGNS Required Reading
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          • #6
            Re: The Crisis of Credit Visualized

            Originally posted by Morganan View Post
            You dont agree that the supply so outreached the demand that a price adjustment wasn't inevitable and the supply went so high due to the amount of money that flooded that market? I do think they got a bit to general in the last few minutes, but I wouldn't say the reasoning they gave was wrong, just not complete.
            Those seem more like mechanisms and proximate causes, not root causes.

            I like Shiller's explanation: People were fooled into thinking that housing prices could only go up. So too much money was spent on them, creating a bubble.

            IBankers were fooled, investors were fooled, homebuyers were fooled, journalists were fooled, regulators were fooled, politicians were fooled.
            Last edited by Nikolas; 02-22-2009, 01:43 PM.
            A policy of freedom for the individual is the only truly progressive policy. -F.A. Hayek

            "$250,000 a year won't get me to Central Park West."

            Comment


            • #7
              Re: The Crisis of Credit Visualized

              A quote from the link..

              Shiller argued that in a rational stock market, investors would base stock prices on the expected receipt of future dividends, discounted to a present value

              That is so damned true. The problem is "future dividends" is a pretty damned generic term. Future could mean 6 months, which forecasters should be able to predict fairly accuriately, but when you start talking in terms of years in a rational market, it's next to impossible to predict.

              I mean, even in todays market, you could easily tell the guy who could predict the future years down the road, he would by the guy with a line of billionares waiting outside his office to talk to him.

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              • #8
                Re: The Crisis of Credit Visualized

                Well by "future," Shiller refers to all future times - the cumulative payout of dividends over all of future time. I believe the purpose of Shillers statement is to say that investing with the intention of gaining through stock appreciation is not rational.
                A policy of freedom for the individual is the only truly progressive policy. -F.A. Hayek

                "$250,000 a year won't get me to Central Park West."

                Comment


                • #9
                  Re: The Crisis of Credit Visualized

                  Nice video, helped explain something that I didn't understand particularly well.
                  Thanks for posting!
                  |TG-Irr| westyfield

                  Sig pic by Sonic, avatar by Chalcas. Thanks!
                  Irregular since 2007.

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                  • #10
                    Re: The Crisis of Credit Visualized

                    I think he hit his bandwidth limit... The sight is down :(

                    EDIT: Nope It looks like he switched to YouTube hosting to cut bandwidth...

                    ~ Draken
                    Last edited by DrakenViator; 02-25-2009, 10:03 PM.

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