Financial Crisis 101 – CDOs Explained

Some time has passed since taking my macro/micro economics courses, and quite frankly I was never a numbers guy… So trying to understand how an investment bank that was founded in 1850 ends up broke – intrigues and troubles me, at the same time. So far, our local stock market has proven its strength, dropping only 3.8% this Sunday, following some hugh drops in European, US and far-East markets.

One of the blogs I follow is PresentationZen, by Garr Reynolds. Garr posted this very ‘web 0.0’ video of Paddy Hirsch, a senior editor at Marketplace, who explains (on a whiteboard, with Mr. line-like-men) in 6min what CDOs are all about, and why they are the main reason for the current crisis.

There are two more videos from Paddy, highly recommended:
Untangling credit default swaps

Untangling credit default swaps from Marketplace on Vimeo.

The credit crisis as Antarctic Expedition

The credit crisis as Antarctic expedition from Marketplace on Vimeo.

2 Responses to “Financial Crisis 101 – CDOs Explained”

  1. 1 samc October 14, 2008 at 20:41

    Read Isiah Berlin on the Paradox, Contradiction between Freedom and Equality.
    Wikipedia will do.

  2. 2 Dvir Reznik October 15, 2008 at 11:11

    Thanks !

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