First there was Clarke and Dawe, from the Australian Broadcasting Corporation, explaining the sub-prime crisis. (Don’t be deceived by the photo of John Clarke — he’s not an economist, he just plays one on TV.)
My favorite bit:
– If the property prices did go down, the sub-prime lenders would lose money, wouldn’t they?
– Only if they still held the loans, Brian.
– Well where have the loans gone?
– Well let’s say they sold them off.
– Well how do you sell loans that aren’t worth anything? They’re just rubbish, aren’t they?
– Well they’re gift-wrapped, Brian, they’re rather beautifully presented, a sort of vellum cover. You get your name embossed on the front of it. They make a bit of fuss of you.
Then today, a Powerpoint SubPrime Primer … I know, you’d sooner count sheets of toilet paper, but think of it as if South Park explained the sub-prime mess, making it very understandable by using a lot of swear words:
John McCain blamed the meltdown on “unbridled corruption and greed,” and called for a commission to find out what happened and propose solutions. A commission?! Hell, I think this video and powerpoint explain it about as clearly as can be. And as for solutions, may I humbly suggest not letting the inmates run the asylum?