Simplifying a Complex Subject: The 2008 Credit Crisis

One of my favorite movie quotes is from the movie Philadelphia, in which the lawyer played by Denzel Washington tells the witness, "Now, explain it to me like I'm a four-year-old." I’ve felt that way whenever I’ve tried to make sense of what happened to cause the financial crisis of the late 2000’s. The topic is so complicated and whenever I’ve tried to learn more about it, the magazine articles or talking-head discussions on TV just haven’t held my attention. Recently, though, I discovered an 11-minute animated video called the The Crisis of Credit Visualized.



The video was created by Jonathan Jarvis and proceeded to go viral on YouTube. In this entertaining and informative video, Jonathan explains in a simple, concise manner how the actions of mortgage brokers, banks, and investors contributed to the credit crisis, a key component of the financial meltdown. Although a 4-year old would not be able to understand the content, this adult certainly did. On the other hand, the 4-year old would find the animations and sounds as fascinating as I did.

What gained and kept my attention throughout the entire video was the effective use of simple graphics, which are cleverly animated in perfect timing to the voice narration. The storytelling is excellent; the story is scripted well from start to finish. The video is relevant for anyone who just wants a quick synopsis of the crisis without being overloaded with superfluous details. For the first time, I am able to understand the meaning of terms such as collateralized debt options (CDOs), hedge funds, and credit swap defaults, and how things fell apart when subprime mortgage holders defaulted on their debts. I feel confident now that I could contribute something meaningful to a discussion about the topic.

From a learner’s standpoint, I am satisfied with the quality and quantity of the information I learned from viewing the video. From the standpoint of an instructional designer, I admired how the author designed the video, and it gave me ideas that I can put into practice. From either standpoint, it was a worthwhile investment of time.