I've been absorbing a lot of news and blogs about the current financial crisis and about financial systems over the past few weeks. I feel like blogging what I've learned to help my adoring readers understand the situation. Yet I know that I tend to think about undertaking such explanations and then getting overwhelmed by the amount I want to say and not writing anything.
So I won't attempt to explain the entire financial crisis here. Instead, I'd love to answer questions about it. By focusing on one point at a time, like "What is a mortgage-backed security" or "Why are U.S. taxpayers 'bailing out' big banks by buying 'toxic' assets" I can share some of what I've learned in a context that will hopefully keep me succinct.
Are there terms you've heard in the news that you don't know? (Basic tip: "Security" in financial news doesn't mean what it means in "Homeland Security.") Are you confused about what's happening in "global credit markets" and how it impacts your daily life? Anything is fair game, but be warned that I'm not an economist or a financial adviser. I'm pretty good at picking up the core concepts of a domain, but there's a lot of background I don't have. So I'll try to be clear about what I know, what I suspect, and what I opine.