LEARN ECONOMICS FROM SOUTHPARK
WIN MONEY AND INCREASE FINANCIAL SMARTS: $50 in gift cards from AMAZON in BOOST FINANCIAL LITERACY; MARCH CONTEST TELL YOUR FRIENDS!
In this brilliant Margaritaville Episode of Southpark Cartoon the entire MORTGAGE MELTDOWN AND DERIVITAVES DEBAUCLE is clarified. Easy enough for a grade schooler to grasp!
In sum, here are the main points:
- The Central Bank kept interest rates artificially low.
- The banks and mortgage companies made unwise loans to people who couldn’t afford to pay them back.
- The investment bankers sliced, diced and packaged all of these risky mortgages into investment products and sold them to the uninformed public.
- As was bound to happen, thousands of people defaulted on their mortgages causing a ripple effect across the economy.
- The result: foreclosures, economic turmoil, slowing growth, widespread financial problems, insurance and bank problems leading to bailouts.
- In the end: more borrowing and stupid ideas such as using your 401(k) to pay off credit card debt
RUN, DO NOT WALK TO FAITH AND FINANCE to check out his interview with me. He did a great job! And he has an awesome site with a broad base of information.
How have the recent economic conditions affected you?