Jack Thurston

Credit crunch, sub-prime mortgage, collateralised debt obligations… Obscure terms that now feature in everyday pub chatter, even more so after this week’s spectacular events involving the collapse of investment banks, unprecedented interventions by governments and a looming global economic downturn. But can you, hand on heart, say that you understand what the credit crunch really is, and where it came from and who’s to blame?

Fear not, for the brilliant radio series This American Life aired a superb hour-long documentary that tells the story of the US sub-prime mortgage bubble and bust as I’ve never heard it told before. From the people who were there, from the Wall Street bankers at the very top to the no income no asset borrowers at the very bottom. And all the middle-men in between. It’s a very human story of hope, greed, hubris and self-delusion.

The Giant Pool of Money show is highly recommended, not just as an explanation of the core cause of the seismic events of this week, but as an example of public service documentary radio at its very best. And it’s not just me that thinks so, according to the programme-makers it’s been listened to online by more than half a million people. It’s still available to listen again online. If you need any convincing, check out the first five mintes, on the link below:

Update 1: The success of The Giant Pool of Money has apparently led to National Public Radio launching a new podcast and blog about the global economy, called Planet Money. It’s presented by Adam Davidson from NPR (who worked with TAL’s Alex Blumberg on The Giant Pool of Money). Both men rank up there with Evan Davis of the BBC in terms of talent at explaining what the hell is going on out there in the miasma of global financial markets and relating it to real day-to-day economics. In just its first week the show has already featured some excellent guests and if they keep up this level of quality, Planet Money will find a regular spot on my weekly diet of podcasts.

Update 2: This American Life aired a second excellent collaboration with NPR the other week, this time dealing with the banking bail out. Listen over here.