Crisis for dummies : a selection of cool infographics to help understand and explain further (Part 1)

Posted on March 3, 2009. Filed under: Bibliographie, English, History, Medias, Research, Video |

 

Crisis : we hear and read about it everyday … but it is hard not to get lost, not to lose track of events or context or historical background, and hard to understand as events unfold the links between them, the play of multiple actors’ interests, and untimately, hard to anticipate, plan for personal or business needs. This is expecially true as the news we get are … well news only ! Bits and pieces of a puzzle we get at some point of our day, sometime without the time to reflect and integrate these.

I have blogged before about 4 aspects of the modern media system (speed, image, multiplicity and “thunderingness” as French politician Michel Rocard put them) and how visualization could provide that added value to provide context, particularly difficult on TV. It was followed by a discussion with him via email and a presentation I made for my students on story telling and visualization. A growing part of the population got accustomed to managing multiple information feeds at the same time, which reflect in specific layout designs for TV news (see here) or enterprise dashboards (see Stephen Few’s very good book on the latter : “Information Dashboard Design“).

 So I turned to economics and information visualization leading press outlets (Financial Times, New York Times, The Economist, French magazines Le Point, L’Expansion, …), TV news services, blogs and document sharing sites (Slideshare, Vimeo,  …) to collect a few of the most self-explanatory examples I could find. I have organized them in different categories :

  • History : trends and cycles

  • Stock Markets  :  graphical analysis and company valorization

  • Politics : public plans and social issues

But first, let’s start with an explanatory video (via Coolinfographics) :

 

The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

 

It remembers me (in a nicer way of course) of one presentation (subprime primer) I got via email some months ago, to explain what sub-primes, CDO, CDS etc… mean, with simple sketches / a cartoon of a banker talking to another banker and devising the sub-prime scheme. In such cases email attachments are still the best way to circulate documents 🙂

Today I will publish the first part :

History :

Business cycles are commonly known since their creation in the XIXth century (notably by French statistician Clement Juglar, but also Kondratief, Kitchin, etc…). Periods of growth and decline follow each other, and looking at it from different “zoom” levels allow for a better understanding of the context.

In the case of the current crisis, several sets of data are to be looked at, whether they represent cause or effect I will not get into the debate, I have just chosen them because they are self-explanatory and in a way they enhance the dramatic aspects of the current situation. If I have not chosen less dramatic charts, it is because I wanted to make a point (like I did with “An Inconvenient Truth”) : the editorial decision to pick one or another, to zoom on a detail, change the scale, etc… plays a key role in conveying a certain message for certain benefits.

 US Housing market

We see that trees (here housing prices), can climb to the sky 🙂

Sub-primes

That a very clever ;-( financial innovation (sub-prime lending in CDO) definitely had a big success

US Debt to GDP

And that it happened in a liberal context of massive national debt growth, all that money coming from foreign investors.

 Decoupling finance from the economy

That somehow the link between those CDS/CDOs and the “real” market got lost in mad speculation, a loop feeding on itself

Credit vs GDP

So the real ratio of debt to GDP was somehow worse …

 Share of Financial Industry profit

And it was clear who was getting the larger share …

Financiarisation

A process called “financialization” everybody thought was the sign of developped countries like us ;-(

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