• The Crisis of Credit: Visualized — The thesis project of Jonathan Jarvis, a student at the Art Center in Pasadena, CA. This is an animated video that succinctly explains how the miscalculations of homeowners, mortgage lenders, investment bankers, and investors led to the credit markets freezing; also explains why leveraging leads to trouble and how the credit rating agencies got duped. Relatively easy to follow with a bit of humor thrown in to lighten the mood.
• The Subprime Primer — The subprime lending meltdown explained with stick figures. This 45-slide presentation details the creation of collateralized debt obligations (CDOs) and the fallacy of perpetually rising house prices. Warning: contains PG-13 language (which makes it rather darkly comedic).
• Kiplinger.com: 15 Things You Need to Know About the Panic of 2008 — When the U.S. Federal Reserve lowered the federal funds rate from 6.5% to 1% over a three-year period from 2000-2003, money got really cheap really quickly. This forms the basis of the current crisis, as explained in the 14 points that follow. This primer concludes by saying that stable home prices are on the horizon and while the economy may suffer from aftershocks for years to come, there’s no need to lose hope (yet).
• Mint.com: A Visual Guide to the Financial Crisis — An easy-to-follow flow chart that concisely connects events together. It all begins with the mania for home ownership fueled by historically low interest rates and the belief that housing prices will always go up.
• This American Life: The Giant Pool of Money — This radio show was produced in May 2008, prior to the stock market crash of the fall, so the reporting may seem a bit overly optimistic when we listen to it now. Still, this is a fantastic in-depth look at what fueled the demand for CDOs and subprime mortgages, as told by insiders. Explains that from 2000-2007, the median household income stayed flat while housing prices went way up. To pay off debt, homeowners took out home equity lines of credit, thereby going into more debt. This is fine as long as housing prices always continue to go up. Uh-oh!

So for those of you who were in the dark about how this whole mess started, I hope these resources have helped shed some light on the origins of our current economic situation. To keep up-to-date on the current recession and other economic news, check out Tip’d Economy and Recovery.gov.

• HowStuffWorks: Top Ten Most Expensive Houses in the World. Donald Trump’s $125 million home ranks last on this list, so you know there’s some good stuff here. The No. 1: Antilla in Mumbai, India. Price: $1 billion. My verdict: What does one family do with a 27-story mansion stocked with 600 servants?
• Forbes.com: World’s Most Expensive Homes. This list comprises only homes that were on the market and/or properties that sold in 2008, as of Nov. 17. The No. 1: Hillandale in Greenwich, Connecticut. Price: $125 million. My verdict: According to some other sites, this home is currently listed at a mere $95 million, but Forbes still has it at $125 million.
• ABC News: Home Is Where the Money Is. The layout of this list could be easier to navigate, but at 34 homes, it is our biggest list. The No. 1: Villa Leopolda in the French Riviera. Price: $745 million. My verdict: The Russian oligarch who bought this mansion set a world record for purchase price of a home. But hey, Frank Sinatra used to party here.
• Wall Street Journal: World’s Most Expensive Homes, Now at Reduced Prices. A sobering look at how the decline of the housing market has impacted the most expensive homes. The No. 1: Fleur de Lys in Beverly Hills, California. Price: $125 million. My verdict: This 45,000-square-foot mansion, modeled after Louis XIV’s Palace of Versailles (pictured above), is in the same Holmby Hills neighborhood as Hef’s Playboy Mansion. What’s not to like?
• Newsweek: America’s Most Expensive Homes. Although there’s no date given, the intro to this list cites statistics from the first quarter of 2007. The No. 1: The Beverly Hills Compound in Beverly Hills, California. Price: $165 million. My verdict: This house has been home to William Randolph Hearst, served as honeymoon quarters for John and Jacqueline Kennedy, and was featured in the famous horse-head scene of The Godfather. Now, that’s an offer you can’t refuse!

What’s that? You aren’t worth hundreds of millions of dollars? Well, then I suppose this has all been fun and games. Recess is over. Time to get back to class. Remember, when buying a home, you should always buy less home than you think you can afford.