Like most (all?) Americans, I've been trying to figure out what the hell happened to the financial system, why we have the bailout plan we have, and whether I should think it's a good thing. Most of the sources I found are either too superficial or filled with jargon I didn't understand.

A month ago, I had the good luck to catch an episode of the radio program, This American Life, which explained the background of the housing crisis. It was phenomenal. This Sunday, I caught part of another episode, which explained the bailout, credit default swaps, why the bankruptcy of Lehman Brothers forced AIG into financial straits...and how the meltdown ballooned out of the commercial paper market freeze. I had to leave before the show finished so I made it a point to search out the online version; it was just that good.

These programs are aimed for an audience with no knowledge of the U.S. financial system and they take the time to explain the terminology in easily digested words. :) Each one is an hour. If you're interested in listening to them yourself, here are the links:

The Giant Pool of Money: A special program about the housing crisis produced in a special collaboration with NPR News. We explain it all to you. What does the housing crisis have to do with the turmoil on Wall Street? Why did banks make half-million dollar loans to people without jobs or income? And why is everyone talking so much about the 1930s? It all comes back to the Giant Pool of Money.

Another Frightening Show about the Economy: They'll explain what happened this week, including what regulators could've done to prevent this financial crisis from happening in the first place.

Both are free to download from the links given. The second is available this week only on iTunes as a "This American Life" podcast for free. :)