The Crisis of Credit Visualized
The Crisis of Credit Visualized by Johnathan Jarvis is the best presentation that I have seen that clearly explains how we get into the current economic mess. The great use of graphics and animations by the designers simplifies the whole compex situtation into something that everyone can understand.
One part that I think was run through too quickly was the leveraging aspect. Leveraging in general isn't a bad thing for businesses.
The issue in this case is that there is over leverage and the money is used on investments that are so complicately packaged that it is not possible to really understand the risks involved. The system also allows banks to borrow or lend an enormous amount of money since they are required to keep a tiny fraction of their reserves as cash, with the rest availble for loan. For more details on this, Chris Martenson page provides a great deal of information.
The government has been trying to help by putting in more credit into the system. I really wonder how long they can keep at this. The mess is created by the so called "smart talented" people but yet everyone got dragged into it. Sometime knowing how to do something may not be as important as knowing the right thing to do.
The Roots of Violence:
Wealth without work,
Pleasure without conscience,
Knowledge without character,
Commerce without morality,
Science without humanity,
Worship without sacrifice,
Politics without principles.
- Mohandas K. Gandhi
