This clip was sheer brilliance.

It’s a visualisation of the credit crisis that followed the Subprime Mortgage Crisis. Admittedly, there are some things that I think are missing, but what it illustrates is the following:

  1. Homeowners are linked to mortgage providers through their mortgages.
  2. Mortgage providers are linked to banks.
  3. Banks are linked to institutional investors.
  4. Institutional investors are investing the pensions and savings of homeowners.

It’s a really broad generalisation – but [spoiler alert] the crazy twist at the end is that homeowners were borrowing from themselves.

Check it out.

And if you want to read more about it, here are the relevant posts: