Monday, September 29, 2008

A coherent explanation of our financial meltdown

It's just an atrocious day on Wall Street and the close of trading can't come soon enough.

The US House has failed to pass the bailout bill and the Dow is down over 600 points as I type.

I realized I do have something constructive to contribute to this situation. I can recommend that you listen to the This American Life episode called The Giant Pool of Money. This show was produced in conjunction with NPR News last May. It is the most coherent explanation I've heard of the origins of the bubbles that are now popping.

Even if you have never downloaded a show before, you can just listen to it through your computer--no iPod or CD burner necessary. It is definitely worth 55 minutes of your time and attention.

I am so angry at this situation. Unlike an earthquake or tornado, this was a completely predictable disaster given that the core of our financial systems were rotting from the inside out for years.

It is definitely a Mojo Mom topic because we and our children will be paying the consequences for years, one way or the other.

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Anonymous Anonymous said...

Hear, hear. Only I'm afraid we know the ways we'll be paying. We'll be paying with the earnings and savings we no longer have.

5:04 PM  
Blogger MojoMom said...

I just saw that the NY Times has an excellent article about the This American Life episode I blogged about, The Giant Pool of Money. The reporter started out by asking common-sense questions as the subprime mess unfolded, "Why are they lending money to people who can’t afford to pay it back?"

If Wall Street had stayed grounded in common sense we'd be in a better place right now. Even if we aren't financial experts, we have to keep asking questions.

8:48 AM  

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