I’m sure most people have heard about the credit crisis/mortgage crisis/rising unemployment going on throughout the United States and even the world. However, some may not know the entire story. Answers to questions like “How do peoples mortgages connect to me not being able to find a job/internship?”, “I’ve never heard of these big banks, why should I care about them?” Jonathan Jarvis has a great video explaining the crisis in easy terms with visuals (its approximately 10 minutes, but its very good):
One thing he doesn’t address is that many university endowments, state funds, and companies were invested in investment banks and Wall Street firms that bought those CDO’s. When the banks and firms went bankrupt, universities, state governments, and companies lost a lot of money. Less money means means layoffs means less new hiring means rising unemployment.
As future homeowners, investors, and executives, we can only look towards the future and try to avoid these same mistakes.