This American Life on the Economy
This American Life has a very informative show this week about the economy. It’s the most lucid description I’ve heard so far of what’s going on, particularly the explanation of the unregulated gambling with credit default swaps that made the situation so much worse than it might have been.
Ira asks Adam Davidson of Planet Money a simple question: why loan money to people when you know they can’t pay it back? It’s all about “credit default swaps” (unregulated insurance policies used to gamble on loan defaults), and “commercial paper”.
Here’s the show:
Image courtesy of Sarah’s Transistor Radios.
Yep, I heard it the other day. It was exceptional. I learned A LOT. Going to give it at least another listen.