Saturday, May 17, 2008

Big Pools of Money

If you are a looking for a one stop source on the Mortgage Crisis, then look no farther than this Podcast by This American Life. It's called Big Pools of Money and it's stunningly well done. They absolutely nailed everything, including the source of the problems, your friend Alan Greenspan who decided to push interest rates down to nothing and make people take unnatural risks.

Listen to this because 1) it's good history and entertaining, 2) it will help you understand where we are going with interest rates pushed down and commodity prices spiraling out of control, and 3) understanding how the global financial system works could help you from making a disastrous financial mistake sometime down the road.

We seem to have an out of control bubble every 3-4 years nowadays, so you need to know how to spot them, because the Fed doesn't.