The whole financial crisis has made me very confused. Does this affect me? Should I worry, be concerned, or panic? At first I wasn’t concerned. I don’t have a diversified portfolio and I’m not retiring any time soon. I have never invested in any Street. I’m just a regular old joe six pack, with just a regular old savings account that has very little money and very little interest. But not a day goes by that a fearmonger is predicting the next depression and the collapse of the global economy.
So how this problem started? Will the bailout fix it? (Judging by what’s happened this week it doesn’t seem it has.) What could happen? Hint: It’s not what Suze Orman says.
This podcast from the radio show This American Life goes through the unraveling of how this problem started. The same way they went through the sub-prime mortgage crisis a few months ago, they go through what’s called the freezing up of the “commercial paper market” caused by the “money market mutual fund” thus creating a problem with credit and how the “credit default swap” created a cluster%$@! of debt. Exactly. It will make sense when you listen to it.
Bookmark this page, grab a sandwich, and listen to it later.
You can also download it directly from iTunes