Overview:
Act One. The Day the Market Died.
Alex Blumberg and Adam Davidson recount the 36-hour period, two weeks ago, when the credit markets froze. Plus, what itâs like now for businesses to get short-term loans, and how the hardship is spreading to every sector of the economy. (16 minutes)
Act Two. Out of the Hedges and Into the Woods.
One more confusing financial product thatâs bringing down the global economy. And one of way to think about this product is this: If bad mortgages got the financial system sick, this next thing youâre about to hear about, helped spread the sickness into an epidemic. These are "credit default swaps." Alex explains. (19 minutes)
Act Three. Swap Cops.
Ira talks with Michael Greenberger, a former commodities regulator, who tells the story of when it was decided not to regulate credit default swaps. And how that decision was emblematic of the way we didnât regulate a lot of the toxic financial products weâre hearing about now. (8 minutes)
Song: "Bankrupt on Selling," Modest Mouse
Act Four. What's Next?
Ira and Adam answer the question: Was the $700 billion bailout bill signed into law today a good idea or a bad one? (10 minutes)"