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Crisis explainer: Uncorking CDOs
Whiteboard Uncorking CDOs
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Reminds me of this video from the Daily Show (some strong language): http://www.thedailyshow.com/watch/wed-august-12-2009/mba-ethics-oath
My Mom had a saying: When you point a finger, 3 fingers are pointing back at you. There's enough blame to go around for everybody. Greedy bankers, fund managers, investors, & borrowers all contributed to this mess. Forget about fixing blame because we never get past that point. Fix the problem, not the blame.
You should use IdeaPaint for these segments... www.ideapaint.com (client) :)
Aye, aye man! Brilliant! Sheer genius! About time somebody explains in a few minutes what that mass financial media have been too incompetent(or afraid) to explain for quite a while now..I'm going to have a drink. I'll have a spot of tea. :)Keep up the good work good fellow!
Complimenti!
Great explanation.
Very meaningful and interesting for education purposes.
I would suggest that you keep working to enhance it, going deeper, and produce more of this "antibodies".
Many thanks. Best regards,
Riccardo Corato
John Creighton says "The causality is also wrong. The top tranche doesn't get filled up first because it is the least risky. It is the least risky because it gets filled up first. Good video though" They get filled up first b/c they are less risky. They are less risky because they are filled with the "safe mortgages", you know,30 year fixed, etc. The bottom tranche is filled with I/O loans, arms and the such. Making them more risky since when the payments reset the homeowner will probably fall into default. Anyway, this is an excellent explanation. If you don't understand it then go back and watch it again. It's actually quite simple. Crazy. But quite simple to understand.
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