How The Crap Hit The Fan: The Financial Crisis of 2008, Video #2

Prof. de Uriarte explains the factors that led to the Financial Crisis of 2008, including: sub-prime mortgages, the sale of mortgage loans to Wall Street firms, the creation of derivative assets known as CDO's, the sale of CDO's to institutional buyers, the introduction and use of credit default swaps used to insure CDO's, and, lastly, speculative "bets" on the failure/default of CDO's.