Today in Bad News on the Economy: Apparently, it’s Much Worse Than We Thought. Turns Out, Those Physics Guys Really Did Destroy the World

Just finished Ex Angel Alex’s fine second installment of his pieces for This American Life on the economy. The takeaway:

  • Ever since Lehman went down, everyone is afraid to lend money, at least in the amounts (in the billions of dollars) that make our economy move.
  • The reason everyone is afraid to lend money is because, well, there’s a hell of a lot more money on the books that is of the imaginary kind; that is, those credit default swaps made Wall Street into a giant casino, and we’ve pretty much crapped out.
  • Everyone was in on the game, which means that all the banks and funds going down together.
  • An equity stake in these companies is still alive, thanks to some heroic unknown senator.
  • Still, it’s bad. Really, really bad. I mean, yikes.

Really, the whole thing is worth listening to; check it out here, and see NPR’s fine Planet Money blog here.

1 Comment on Today in Bad News on the Economy: Apparently, it’s Much Worse Than We Thought. Turns Out, Those Physics Guys Really Did Destroy the World

  1. Why doesn’t someone propose something like the economic plan on the site below? We need to do more than waste money on bailouts that don’t work and attempts at a quick fix.

    http://www.feedingwealth.com/Home/Default.aspx?tabid=72&forumid=5&postid=10&scope=posts

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: