Hat tip to Gavin Heaton for pointing us to this crystal clear and refreshingly insightful explanation of the what, why, how of the current financial crisis on Freakonomics. This is absolutely the best summary I have read yet on the subject, and we have Douglas Diamond and Anil Kashyap to thank for it.

Read the full thing here. It’s excellent.

Have a great weekend, everyone.

Update: Hat tip to SteveAtdFruit for this great update.