What Really Went Wrong With Subprime

As America has watched from the sidelines for the last nine months, we have watched the subprime debacle mushroom from a couple of hedge funds imploding into a worldwide credit crisis. This is not over yet and it may create more damage than the dot com bust. The ultimate cost is like to exceed $500 billion unless you count stock market valuation. In that case, the cost is in the trillions of dollars.

Most people don’t understand this and it is becoming clear that many on Wall Street who thought they were smart enough to avoid this kind of disaster are still are trying to figure out what was really going on?

The Power Point presentation that you can download explains it humorously in a short time. It explains the roles of all the participants from borrower to the end owner of the loans. Of course, like all cartoons it is abbreviated representation of real life, and like any good cartoons, hits very close to home.

WARNING: the presentation contains language that warrants an R rating. If you are easily offended, this is fair warning. But if you are like most of us, you’ll get a good chuckle and wonder how so many supposedly smart people could have fallen for it.

Click here to download the Power Point Presentation, File size =. 2.4 mB