As I’ve mentioned previously, This American Life has been presenting an ongoing series about the financial crisis and the economy. Below is a list of the relevant entries so far. I recommend you listen to them all.
If you’re confused about what caused the greatest financial crisis since the depression, let This American Life teach you in words you can understand, how the mortgage lending crisis started, with their episode The Giant Pool of Money and follow-up with their episode Another Frightening Show About the Economy in which we learn:
- How and why the credit markets froze?
- What are “credit default swaps” and how do they propagate hardship to every sector of the economy?
- Why aren’t “credit default swaps” regulated?
- What will the bailout do and is it a good thing?
If this interests you, you might also want to check out the NPR: Planet Money Podcast.
Update: Now there is a movie about all this (by Adam Davidson no less) called The Big Short. I highly recommend it.