What's Going On

What’s happening? The newspapers say it’s all about mortgages. But that’s not right — or at least not complete — because it doesn’t make sense. A fancy house in San Diego is still a fancy house after someone misses a mortgage payment; even if the price falls a little bit, it’s still a fancy house. Getting from some bad mortgages to what we’re seeing now, with trillions of losses and with banks and brokers collapsing everywhere

Paul Krugman takes a shot at explaining what’s going on in the markets. Charts and equations, but nothing you can’t handle. It’s nice to see someone have a little respect of the reader.