The washington post, has a nice comic called 'How Debt Bites Back' which demonstrates why the credit crunch exists. This is the best illustration (and even explanation) I have seen yet (It speaks in laymans terms).

When Debt Bites Back [IMAGE]

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The whole subprime meltdown is still causing quite a stir in the finance world.

My father recently sent me this video, which not only does a great job of explaining the crisis, but is also utterly hilarious.