Image by hansamann via FlickrI have had many discussions with different people on the current recession / global financial crisis / crisis or credit whichever word you want to use to describe the situation the global economy is in. One thing is sure if we dont understand how we got into this mess, then it is sure to happen again. Its not enough to lay blame, like opposition parties in most developed economies are doing (I wonder what they will do if they are in power), but it is key that we know that the departure from ' common sense' is at the root of this crisis.
In my quest to understand the very root of all this, I came across the crisis of credit video by Jonathan Jarvis, which by the way seem to be the best explanation with no complex financial theories. This video convinced me of my theory of the 'departure from common sense' - more on that later
The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.