How the markets really work - the subprime crisis

John Bird and John Fortune explaining the whole sub-prime fiasco back in 2007; too accurate to be funny, do watch it right to the end (from 7:50 it is quite scarily prescient).




How a loan to an "unemployed black man in a string vest" becomes a structured investment vehicle (SIV)


Of course what is missing from this explanation is why the "unemployed black man in a string vest" was being offered a mortgage at all and for that you need to look into the Community Reinvestment Act and there you will find the real culprits...



For a good explanation of how subprime derivatives work take a look at this...