A few months ago, I posted my translation of a simplified explanation of the financial crisis which was originally authored by Leopoldo Abadia. Mr. Abadia has since written a book (in Spanish) about the crisis and focused much of his updates on the situation on Spain.
Jonathan Jarvis, a grad student at the highly regarded Art Center of College of Design in Pasadena, California (source of such designs as the Mazda Miata and Nissan Pathfinder, and Chip Foose’s alma mater) has created a very nice animation explaining the credit crisis and its causes in a simplified way. I think it’s easier to digest than the written explanation I provided earlier, so I’m providing it below.
If you still aren’t sure what caused our current situation, spending 10 min. to watch the two videos is probably worth your time.
The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.