More importantly where did it all go?
We have all read the stories in the newspapers. We have all seen the reports on TV. Does anyone really understand what happened to the US economy? Is it as simple as banks lending money to people who could not afford to pay it back? If it were stock markets would not have crashed the way they did.
Here is a video that takes you through sub-prime mortgages, Wall Street vs. Main Street, and credit default swaps. Visualization is much easier to comprehend then the Wall Street Journal.
My favorite part is the depiction of the "less responsible"!
So what is next for those of us on Main Street? Hunker down, pay off your debt and get back on the right side of the balance sheet. With interest rates so low you can pay off your debts (mortgage, credit card, line of credit) quicker and easier. Extra payments on your mortgage or increasing your monthly payments are applied directly to the principle.
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This is another great video site that "diagrams" the financial concepts and how it all happened.
I love the "blackboard" and funny drawings he makes. He's really easy to understand too.
http://www.khanacademy.org/#Credit Crisis
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