The following video provides a good perspective as to how debt and leverage work.  Call it a crisis, recession or downturn, it is imperative to understand the dangers of leverage and debt.   This is something many people have been forced to come to terms with and sooner or later our politicians will.

As David points out, we will emerge from the financial crisis eventually.  When we do, things will look a lot different.

Related posts:

1. Simple Steps To Get Out of Debt
2. 2 Choices In Financial Crisis: Adapt And Thrive Or Get Left Behind.
3. Is It Okay to Keep Buying Stuff while I am Getting Out of Debt
4. Understanding This Housing Bubble Correction Part 2
5. PIIGS and The Debt Crisis