Create your own awesome maps

Even on the go

with our free apps for iPhone, iPad and Android

Get Started

Already have an account?
Log In

A Visual Guide to the Financial Crisis by Mind Map: A Visual Guide to the Financial
5.0 stars - 1 reviews range from 0 to 5

A Visual Guide to the Financial Crisis

Based on "A Visual Guide to the Financial Crisis" via (see link)

"Housing prices never fail"

Mania for home ownership

Historically low interest rates

Alternative investment after the dot-com crash

Belief that housing is a safe and good investment

Already own a home?

The Media

Flip That House

Flip That House

Flip That House

Property Ladder

The questions asked

Can't afford a house?

Have no down payment?

Can't make payments?

Already own a home?

Buy Another, Inflated prices, Housing Bubble


Mortgage Brokers

sub prime loan

Home Ownership

Banks call in bad loans

Pool and rename them Collateralized Debt Obligations

Slice and dice creating more CDO's

Secure AAA and BBB bond ratings using financial wizardry and "overcapitalization"

Banks sell these new "safe investments to

Other banks

Cities and Towns

Insurance Companies

Pension Funds


Notable Quotes

Based on "A visual Guide to the Financial Crisis" at

"The notion of a bubble bursting and the whole price level coming down seems to me as far as a national nationwide phenomenon, is really quite unlikely," Alan Greenspan, Federal Reserve Chairman 2003

"The idea that we're going to see a collapse in the housing market seems to me improbable," John Snow, Treasury Secretary 2005

"It's impossible for prices to go down this year." Gary Watts, Orange County Association of Realtors, 2006

"If you own your own home free and clear, people will often refer to you as a fool. All the money sitting there, doing nothing." Anthony Hsieh, CEO Lending Tree 2006

"At this juncture, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained." Ben Bernanke, Federal Reserve Chairman, 2007

"Housing Activity will remain healthy from some time to come." David Lereah, NAR's chief economist, 2005

"We may see a blip up in foreclosures and deliquencies." Leslie Appelton Young, California Association of Realtors, 2005

"The National media is reporting a housing bubble. Don't believe it." Dale Akins, Market Edge 2006

"Housing is still the bet investment, without question." Stan Sieron, President, Illinois Associ. of Realtors, 2006

"I think investors will have a good reason to come out here and buy again." Jeromith Sutton, NAR investment advisor, 2006

"We got a big problem." George W. Bush September 26, 2008


Housing Prices fail

Mania over home ownership

Overbuilding of homes

Too many homes

Housing prices fail

Mortgages worth more than homes themselves

Homeowners can't pay mortgage


Banks do not get paid

Banks fail

Lehman Brothers goes bankrupt

Washington Mutual seized, assets sold to JP Morgan

Almost, Government rescues Fannie Mae, Freddy Mac, Government rescues AIG, Merrill Lynch bought by Bank of America, Wachovia bought by Wells Fargo

Banks cease lending money

CDO investors do not get paid

Crisis of Confidence

Stock Prices free fall

Government Bailout