Understanding the financial meltdown
[...]if you want banks to make smart, prudent loans, you probably shouldnâ€™t give money to bankers who sunk themselves by making a lot of stupid, imprudent ones.
When you shout at people â€œbe confident,â€ you shouldnâ€™t expect them to be anything but terrified.
These are two memorable quotes from a NYT Op-Ed piece called “The End of the Financial World as We Know It” published on January 3, written by Michael Lewis and David Einhorn. It’s the most terrifying thing I’ve read in years.
Episode 355 of NPR’s “This American Life” is called “The Giant Pool of Money,” and it’s one of the most informative, straight-forward and similarly frightening stories about the disaster. A must-listen. (If you don’t have an hour to spare, the 13 minute version from May 9 on All Things Considered, “Global Pool of Money Got Too Hungry” is similarly excellent.)