If people thought the US economy was bad in 2007, the US economy has turned out even worse in 2008. The world will never forget 2008. There have been countless articles and videos from a variety of analyst, economist, financial advisers, and economic think tanks that have all thrown in their explanations on how and why the American economy imploded like a controlled demolition. I’ve spent a good portion of the last couple months seeking and searching the best of the best information (video or articles) that explains “What happened to the economy and how did we get here?”
To be honest, this really upsets me that the government was sleeping at the wheel, not to mention Americans thought they could keep spending with credit and home equity loans, while not saving a thing, and nothing would happen. This is the epitome of financial ignorance, greed, and malfeasance. We should also realize that every empire fell by overspending. Whether it was the British Empire, Rome, or some other ancient civilization. Every empire that over-extended itself financially fell like a house of cards.
I hope it’s not too late to salvage the American economy; we really did a number on the economy. This is the perfect storm of recessions. We have obligations everywhere. Military obligations overseas , health care obligations, saving the banking industry, saving the car industry, saving the housing market, revitalizing America’s infrastructure, revitalizing our energy infrastructure, not to mention encouraging the American people to spend, when they don’t have a dollar to spare. You couldn’t ask for a more challenging environment. Below, feel free to spend probably the most important 30 minutes you’ll ever spend in understanding the dire financial circumstances of the United States. If your interested in buying the full length documentary, you can go here
Nevertheless, I give you the Economic Meltdown’s Greatest Hits of 2008:
Black September
http://www.economicpopulist.org/?q=content/black-september
Throughout 2008, the American shopper has endured record high gasoline prices, hurricanes and flooding, and a stalled housing market in their quest to shop. While the consumer has remained fairly resilient during this time, two very recent events are dramatically impacting mall visits and consumer confidence.
Meltdown! The Global Competence Crisis!
http://www.gmo.com/websitecontent/JGLetter_ALL_2Q08.pdf
GMO Quarterly Letter by Jeremy Grantham (July 2008)
Economic Collapse – Bad Economic Crash Coming 2008 (Part 1)
http://www.youtube.com/watch?v=IQUMCGXq4yM
Economic Collapse explains how the coming economic collapse will bring the stock market and the economy to its knees…part 1
Economic Collapse – Bad Economic Crash Coming 2008 (Part 2)
http://www.youtube.com/watch?v=-DNWIBhmYPg
Economic Collapse explains how the coming economic collapse will bring the stock market and the economy to its knees…part 2
Crisis Explainer: Uncorking CDO’s
http://www.publicradio.org/columns/marketplace/offair/2008/10/financial_crisis_explainer_unc.html
Senior Editor Paddy Hirsch helped us in the Marketplace office understand how some of Wall Street’s complicated investment instruments led us into this financial mess. We thought his “champagne glass” explanation of “collateralized debt obligations” at the whiteboard might make it clear for you too.
How credit cards become asset backed bonds
http://www.publicradio.org/columns/marketplace/offair/2008/11/the_whiteboard_how_credit_card.html
Mortgages aren’t the only financial instruments that get turned into securities. Marketplace Senior Editor Paddy Hirsch explains how companies make money by buying credit card debt and bundling it.
IMAGE: Visual Guide to the Financial Crisis
http://blog.mint.com/blog/finance-core/a-visual-guide-to-the-financial-crisis/
Almost overnight, the talking heads went from perpetuating the euphoria of investors to rushing to pronounce the economy dead. Last year, when lenders started dropping like flies as foreclosures rose and margins were called, the problems of Wall Street became more and more apparent, and lending guidelines were tightened to the point that many individuals were stuck in their time-bomb loans, and thus began a vicious cycle. But what led to this? Here is a visual guide to help you understand the events leading up to the bailout.
PRESENTATION: Sequoia Captal’s 56 Slide Presentation of Doom
http://www.techcrunch.com/2008/10/10/sequoia-capitals-56-slide-powerpoint-presentation-of-doom/
56 Powerpoint slide message of doom and gloom in Silicon Valley.
The Giant Pool of Money
http://www.thislife.org/Radio_Episode.aspx?sched=1242
A special program about the housing crisis produced in a special collaboration with NPR News. We explain it all to you. What does the housing crisis have to do with the turmoil on Wall Street? Why did banks make half-million dollar loans to people without jobs or income? And why is everyone talking so much about the 1930s? It all comes back to the Giant Pool of Money.
Another Frightening Show About the Economy
http://www.thislife.org/Radio_Episode.aspx?sched=1263
Alex Blumberg and NPR’s Adam Davidson—the two guys who reported our
Giant Pool of Money episode—are back, in collaboration with the Planet Money podcast. They’ll explain what happened this week, including what regulators could’ve done to prevent this financial crisis from happening in the first place.
Battle of Ideas: The Credit Crunch Demystified
http://fora.tv/2008/11/01/Battle_of_Ideas_The_Credit_Crunch_Demystified
While the consequences of the credit crunch appear all too apparent, the intricacies of the complex financial instruments involved, combined with the vast sweep of the global financial system, seem to defy explanation. Attempts to accuse negligent regulators, fraudulent brokers and greedy borrowers cast much blame but little light on the causes of the crisis.
Wall Street Meltdown Primer
http://www.fpif.org/fpiftxt/5560
Many on Wall Street and the rest of us are still digesting the momentous events of the last 10 days. Between one and three trillion dollars worth of financial assets have evaporated. Wall Street has been effectively nationalized. The Federal Reserve and the Treasury Department are making all the major strategic decisions in the financial sector and, with the rescue of the American International Group (AIG), the U.S. government now runs the world’s biggest insurance company. At $700 billion, the biggest bailout since the Great Depression is being desperately cobbled together to save the global financial system.
TIME: The Top 10 Everything of 2008
http://www.time.com/time/specials/2008/top10
Books you should read if you want to understand all these economic shenanigans:
- Naked Economics: Undressing the Dismal Science by Charles Wheelan
- A Free Nation Deep in Debt: The Financial Roots of Democracy by James McDonald
- The Coming First World Debt Crisis by Ann Pettifor
- I.O.U.S.A.: One Nation. Under Stress. In Debt by by Addison Wiggin, Kate Incontrera, and David Walker
2 Comments
I thought this one was rather good.. not very in depth – but informative…
http://lolfed.com/2008/12/26/seven-scandalous-financial-bugaboos/
A combination of links that people have shared with me and links that I’ve found myself. Just Googling away and trying to find the most tasty economic morsels out there.
- Malik
One Trackback
financial debt in the united states…
How did you manage to come up with this information? I would like to know….