Thursday, January 24, 2008

Subprime Mortgage and Lending Crisis

Financial developments such as Citibank's $18 bn write down, Meryl Lynch's 11.5 bn 4th quarter loss, that opened the way for China and Abu Dabi to buy up America like a blue light special leave many wondering how could such a thing happen.

Of course it is all tied to what has been called the "subprime" scandal, but even this leaves many not closely involved in financial matters trying to understand what it's all about.

Watch this video to get a clear understanding of how financial markets actually work:

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