Understanding the Financial Crisis in the U.S.

I've been asked by a number of people about the current financial crisis in the U.S. I've been struggling to find a simple way to explain it, but now have some resources.

First, Roger Congleton has put together a good set of notes explaining the credit crisis. (HT to Tyler Cowen)

Secondly, Joesph Stiglitz was on Democracy Now today (October 2nd). He gave an easy to understand presentation of the crisis, its causes, and its relation to the current war in Iraq.