Tuesday, October 7, 2008
Understanding the Financial Crisis (for Non-economists)
Here is a list of resources that I have found helpful in understanding the financial crisis:
The Newshour's Paul Solman is, in my opinion, the best in the business at explaining economic issues to laymen, such as myself. Back in March, he did a piece explaining how the subprime loan crisis is effecting the rest of the economy. You can link to it here. More recently, he explained how the credit crunch relates to the current crisis.
You can also read David Leonhart's piece in the New York Times explaining the relationship between trust and credit. He also draws some relationships between the current crisis and the Great Depression. And more recently in the same newspaper, David Brooks explains how the hubris of Wall Street traders contributed to the crisis.
This article from the American Enterprise Institute, which was also published in the Wall Street Journal, helps us understand how Fannie Mae and Freddie Mac were at the center of this crisis, and what Congress should have done about it, but didn't.
This blogger reminds us that you, "the American people," are also at fault for the current crisis.
SNL also provides some worthy explanations for the financial crisis:
Another Update (thanks Jordan):