Housing Credit Crisis

I ran across this video (via Gerv Markham's blog) that tries to explain in layman's terms why the banks have run into trouble. On the whole, I think it does a pretty fair job of breaking down some of the basic points and making them understandable.

It basically comes down to this: sub-prime mortgages are a somewhat riskier investment, and the risk was underplayed, and some funds were invested in sub-prime mortgages that really could not tolerate that level of risk.