Thanks to John Sumser for posting this video on Twitter. It is the clearest summary of the financial crisis that I have seen.

Note that China’s crisis is separate, and very different, from the crisis in the US. It is only seriously hitting now but the warning signs began when the new China Labor Law was promulgated at the end of 2007. The link to the US is the fact that it was money from China, the Middle East, Japan and Russia that greased the wheels, and created the bubble. China may stay in the slowdown longer than the US because it is an unbalanced, export-driven economy.

End of decoupling myth.