Wednesday, April 1, 2009

A visualization of the financial crisis

Using a champagne bottle metaphor, Paddy Hirsch from Marketplace explains how Collateralized Debt Obligations (CDOs) contributed to the current financial situation. When the champagne stops pouring out of the bottle, he says, bond holders stop getting paid.

http://marketplace.publicradio.org/display/web/2008/10/03/cdo/

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