GRAMP (talking to Arthur): Lord! I never thought I'd see the U.S. financial system melt down like this. It's a shade of 1929. ARTHUR (Talking to Gramps): I don't even understand what happened.
THE HOUSE (a chair in the corner)
GRAMP (explaining): Well, mortgage lenders loaned massive amounts to homebuyers they knew couldn't pay them back.
GRAMP (explaining, hand pointing): But lenders didn't care, 'cause they'd immediately slice up and sell those debts to investment banks as "mortgage-backed" securities.
Those investment banks then loaded on even more mortgage-based assets...and got insurers like AIG to cover the risk.
GRAMP (explaining): ...but it was all based on those super-creaky mortgage-backed securities.
GRAMP (explaining): Eventually, they got so cocky that they even started using apple-backed securities.
ARTHUR (curious): ...Securities backed by Apple Computer? GRAMP (explaining, pointing): No. Securities literally backed by that barrel of apples.