This video provides you a short and simple story of the credit crisis.
The goal of giving form to a complex situation like the credit crisis is to quickly supply the essence of the situation to those unfamiliar and uninitiated.
This project was completed as part of my thesis work in the Media Design Program, a graduate studio at the Art Center College of Design in Pasadena, California.
I must say that I am quite impressed by the video and graphics. Most of all, the video is able to explain clearly how and what caused the credit crisis. As traders, we need to understand how the credit crisis happened and how it can happen again.
Because if we can understand what causes a crisis, we can look out for the signs of another impending crisis and profit from it from our forex trades instead of being a helpless person in a situation like this. In a credit crisis, there will be a flight to safety and most of the money will go to buying the US Dollar. Hence, if another crisis looms, you do not want to be in a risk currency like the euro and the pound. It would be smarter to go short those currencies and go long the US Dollar.
You would have made a lot of pips between 3rd quarter 2008 to early 2009 if you has long the US Dollar.
I hope that you have enjoyed this video as much as I do.
To your trading success!
~ Ardy Ismail
Singapore Forex Trader