With more banks reporting massive write downs this week (Bank of America reported a 41% drop in quarterly earnings), we thought it timely to publish this funny take on how the subprime banking model was supposed to work. Flick through this humorous powerpoint, complete with lively stickman descriptions on how this financial quagmire makes sense/ cents for some.
Please Note: For clear viewing, click on the presentation tag at the bottom of slide, then on slideshare website, press fullscreen (bottom r.h.s)
However, to get to the bottom of the credit crunch, listen to the interview with Phil Anderson of Economic Indicator Services on today’s Renegade Economist radio show. Podcast it and you’ll never miss out.