“Credit,” “Default,” “Swap,” and “Rerun.”
Despite the best efforts of the staffs of both “Planet Money” and “This American Life,” I still don’t quite get the whole concept of credit default swaps. I listened to their collaboration, “Another Frightening Show About the Economy” at least four times, trying to wrap my brain around it, and it just won’t take.
As of today, you can make that five times. “All Things Considered” replayed Alex Blumberg’s explanation of the concept as I was driving home from work. I paid close attention (which resulted in me turning a block later than usual), but I still didn’t quite get it down.
But thanks, NPR, for reminding me again that I can’t understand this. I can’t even tell you where I go wrong, where I begin to lose understanding. I just don’t get it. The helpful “buying insurance on a house you don’t own” metaphor doesn’t quite work for me either. Maybe because we rent.
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I listened to that too. I don’t understand it either…but I know it’s baaaaad.
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