Here's a nifty little video that illustrates the credit crisis.

Basic info to be sure but still presented in a clear understandable format if you aren't a financial genius.

http://www.crisisofcredit.com/

Not a lot to know except Bill Clinton basically forced lenders into giving loans for people with no way to afford it with the community credit act, and the resulting demand for housing pushed the prices to ridiculously more than they were worth. Banks were happy to give a 200,000 loan on a 40,000 house cause when people could not pay, they get the money and the house back. Then Bush basically forced the SEC to allow those worthless mortgages trade at face value. In all three places, super-rich people put their immediate profits above professionalism and worried not a bit about accountability.

They worry about how to re-value the homes that mortgages are on now. I have the answer. Whatever price they were worth before the Clinton administration.

Bottom line. Crooks run the government and big business. Republicans, democrats..no difference.

That was an interesting and fairly accurate example, but incomplete. Good for those who need the general idea. Thank you very much for that.
A couple of things not mentioned are:
1) The Community Reinvestment Act and the government's interference of forcing banks to lend to high risk individuals and businesses
2) The so-far unwillingness of most banks to sell the Other Real Estate (foreclosures) at payoff plus unpaid taxes, thereby forcing lower and lower risk grades and write offs to P&L
3) The tax benefits of a bank choosing to write off losses to P&L over selling ORE at payoff plus unpaid taxes
There's more, but these are the issues foremost in my mind.

Bill Clinton forced?????? Ummm I beleive the prez can veto(Can not write policy).....Lets see who had contol of congress "SIX" of his years!!!!!!! The republicans?????? Cant blame Bush either but dam sure can the republican congress!!!!!!!!!!!!