I’ve been trying to figure out how to explain my understanding of the liquidity crisis that was the latest and most panic-stricken phase of the ongoing financial crisis.
I’ve created a series of charts – trying to put all the different factors in perspective.
They are all basically drafts at this point – but let me know what you think, if you have any suggestions.
(For those who are going to say the government – and especially Fannie Mae and Freddie Mac – played a role in causing this mess aside from the lack of regulation, and failing to act to prevent Lehman Brothers from collapsing – the government is given a greater role in the section that is expanded on in the “Housing Prices decline” chart that I haven’t posted yet. If you see a greater government role in the events and factors here – as some who read this previous piece of mine did – than let me know where – because I haven’t really seen any specific explanations that seemed convincing.)
