Wednesday, October 08, 2008

US Subprime Mortgage Crisis Explained

To everyone interested in the reasons why the american financial system is going tits-up at the moment, I recommend this episode of a radio show called "This American Life", titled "The Global Pool of Money".

It traces the whole chain of events that led to the current disaster, and shows the wide range of self-perpetuating situations at all stations along the chain that fed a vicious circle which, once started, practically had to end the way it did.

On a related note, concerning non-US citizens: Have you noticed how it's getting easier and easier to get a loan here in Germany? Or, for that matter, in *insert central european country of your choice*? -- One can safely assume this phenomenon is not limited to my home country alone. Notice how banks are actually advertising easy lines of credit? This podcast explains a lot about that, too.


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