I've been trying to figure out how to explain my understanding of the liquidity crisis that was the latest and most panic-stricken phase of the ongoing financial crisis.

I've created a series of charts - trying to put all the different factors in perspective.

They are all basically drafts at this point - but let me know what you think, if you have any suggestions.

(For those who are going to say the government - and especially Fannie Mae and Freddie Mac - played a role in causing this mess aside from the lack of regulation, and failing to act to prevent Lehman Brothers from collapsing - the government is given a greater role in the section that is expanded on in the "Housing Prices decline" chart that I haven't posted yet. If you see a greater government role in the events and factors here - as some who read this previous piece of mine did - than let me know where - because I haven't really seen any specific explanations that seemed convincing.)

Tags: Lehman Brothers

This entry was posted on Wednesday, October 22nd, 2008 and is filed under Economics. Comments are closed; the conversation is kept as it was.