Why 'Fallout' for the financial crisis?

The meltdown of the credit and mortage markets will inflict damaging effects upon our economic future that we may not anticipate — much like the fallout from a nuclear explosion. Senior Editor Paddy Hirsch explains why Marketplace is using the term in its coverage. More coverage of the financial crisis is at marketplace.org/financialcrisis

Category:

Education

Tags:

• Marketplace
• whiteboard
• financialcrisis
• fallout
• paddyhirsch
• business

[sesayse]

Thanks Paddy for your excellent videos. I do not understand how they don't get an incredibly lot more views, they are truly enlightening. They help everyone to be something different than a clueless victim of what happend, but make you grasp the rush that is in those new financial products. The realm of protracted, complex fiction that is modern finance almost make you wish to be a part of it, even with the awareness of the criminal aspects in the recent ongoings. So thanks again for your work!

[atat9998]

where is the "leaving everybody in need of a drink" + pen toss ending??

[alecjsona]

Paddy Hirsch rules! Making the confusing and daunting world of economics interesting and cool is a very difficult job, but you pull it off. You rock.

You leave us all a bit smarter and quite a bit more informed.....but also, you leave the lot of us....badly needing a drink.....

[hbsegura]

Economics professor always tell there students not to get ARMS (Adjustable rate mortgages) when they buy a house. Meanwhile all the other people who did not go to college are never told this and get subprime loans.

[WhatsUpWithOurWorld]

they did have asset collateral. The problem, is that the assets were derivatives of other worthless assets, and each time they created an asset borne from another asset, it was rated AAA, meaning as good as gold. Gordon Gekko is back.

[Calliber50]

Why buy something later and only pay the value of that item. When you can have it now and pay twice as much over a duration of time! It's greed, no other way to describe it. The sad thing is nobody is getting their hand slapped. They're actually encouraged to do so. Hell you get tax breaks for taking a loan out to get a house! A College degree doesn't mean you have experience. It just shows that you can learn. Unfortunately, history isn't a requirement for most degrees!

[negkreyol21]

to think my parents teaches me to save money to buy the things i won't and they aren't even college educated and its funny our economy works by people borrowing and selling things they don't have and then keep piling it on and they dont even have collateral or assets to back it up.did they assume the markets would always be good. by people who are supposed to be educated. bizzaro world indeed

[Prostorov]

very interesting, thanks!

[captcaveman4201]

yep .. its a pretty shitty outdated system. where you can do everything right and still get whipped out by something that someone elose was the cause of. are you a betting man? wouldnt you rather have a sure thing? instead of this system that builds up to these enevitable events.