What caused the financial crisis? Part 1

Published just before the 2008 financial crisis - this short series of videos explains some of the high risk derivatives that caused the system-wide crash.

In this first set of videos he talks about Mortgage Backed Securities and then Collatoralised Debt Obligations (CDO's)

In my next post we will go on to talk about Credit Default Swaps (CDS).

I will be posting later in the week about this risky trade and who bears the risk - but for now, see if you can get head around how this stuff basically works.

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Mortgage Backed Securities - Part I

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Mortgage Backed Securities 2

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Mortgage Backed Securties - Part 3

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Collateralised Debt Obligations