What's happening? The Dow Jones industrial average is down 40% since its peak of 14,165 points a year ago, on October 9, 2007. That's a loss of $8.4 trillion. Is this a result of greed and fraud on Wall Street? Who is responsible? Has anyone gone to jail yet?
Kim and I are following the coverage of this financial crisis. Unfortunately, we often have difficulty understanding humans. (Just listen to the election debates – someone, or everyone, has to be lying.)
Trouble in the credit markets means no loans, and no loans mean no money. You may ask: Why are humans so dependent on debt? Here's a helpful video called Money as Debt - it's 47 minutes long but goes a long way to explain the current situation. Interesting how animated characters are easier to understand than humans in general.
Thanks to Matthew for sending us a link to this video.
Posted by Mimi.
[ note from Bunny: I like the information contained in this video, especially the first half which covers the "history of money". Not crazy about the drawings tho. ]