When I was a kid, financial news was perhaps the most boring thing in the whole world, except maybe the TV farm report that frustratingly preceded early-morning cartoons. (That farm news seems to have disappeared here in Vancouver. Even the telephone weather line I used to check, pre-web, before bicycling to university each day, no longer reports hay drying conditions in the summer.)
I can't say that my opinion of money and business news has changed much in the intervening decades. It's usually a snore-fest of inscrutable numbers, impenetrable market analysis, and a parade of old guys in dark suits and ties. (Yeah, I hire an accountant to sort out my taxes after my perfunctory sorting of income and expenses each year.) Despite the impacts of global markets on everyone's ability to get a job, buy things, use credit, and so on, it always seemed so disconnected from my daily life that I just couldn't get interested.
Well, these past few weeks have certainly removed world financial news from the "boring" category, but I still can't pretend to understand what's going on very well. If you're like me, I strongly recommend This American Life's recent audio episode "Another Frightening Show About the Economy." Before you listen to that, however, I suggest you check out its predecessor from May 2008, "The Giant Pool of Money," which dissects the American sub-prime mortgage disaster that preceded the current credit crisis.
Both shows do an amazing job of explaining terminology such as "commercial paper," "credit default swaps," "leverage," "financial instruments," and other stuff I never bothered to learn about, and of putting together the chain of insanity that led to today's bizarro state of affairs, where supposedly laissez-faire conservative governments around the world are desperately spending hundreds of billions of dollars to nationalize banks and insurance companies. Even if you work in the finance industry, are a savvy investor, or otherwise have a handle on this stuff, check out the two shows. You'll likely learn something anyway.
UPDATE: Here's an even more direct explanation (via Kottke).
Labels: americas, europe, money, news, podcast, politics