I heard a great story yesterday on NPR’s All Things Considered. It was a story that analyzed the sub-prime mortgage crisis from the aspect of “why did this happen, how could bankers ignore their core tenants when giving out loans”. Global Pool of Money Got Too Hungry was created by in conjunction with This American Life, so they take an interesting view on the entire situation. Well worth the 13 minutes to listen to this report.
Update 20080520: The original story, which is much more expanded, was aired this weekend on This American Life. In my opinion, the story The Giant Pool of Money is something that every American should listen to if they want to understand why banker’s forgot their principal rules of loaning money: make sure the borrower can pay the loan back.