This American Life
“The Giant Pool of Money”
This American Life is a very cool hour long radio show from WBEZ in Chicago. It takes on American
issues about normal people, from an unique perspective. It’s well done and fun to listen to. The
show is 59:00 long. In May of 08 they ran a special program about the housing crisis produced in
a special collaboration with NPR News. It takes on the issue of this Global Financial meltdown. 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.
You can find a link to This American Life on the Buddha blog .
Below I’ve noted terms or people or things that are particular to the show. I’ve also provided a line
or two for you to comment on. You may define the particular term - you might write a comment
about the discussion that is going on, or something about an individual being interviewed. Even how
he looks or sounds. There’s no set answer, it’s up to you! However, by following the show - and
noting comments as you go - you’re going to gain great insight to this Global Financial Crisis. After
you’ve completed the paper, and a couple of follow-up questions, turn it in to Mr. Wood. You can
earn up to 25 points extra credit to be added to your blog scores as they arise throughout the
marking periodl. The assignment is due by Monday October 20.
Please make sure that this is your own work. I reserve the right to ask a few questions about your
answers and what you thought of the radio show if I think the work is not your own. If I find that
you copied a portion of the assignment - both individuals involved will recieve zeros and not be
eligible for further extra credit opportunities for the remainder of the year.
You may work in teams on this - in fact I think it’s probably the best way to go. But you must do
your own work! OK let’s go.
This American Life - “The Giant Pool of Money”
Richard the Marine
N.I.N.A. Loan
(7:40 musical interlude)
Global Pool of Money
This American Life - 1
$36 trillion to $70 trillion
Fed rate of 1%
(16:00 musical interlude)
Mike Gardner of Silver State Mortgage
No Income Verified Asset
(19:00 musical interlude)
Did you ever think “What are you guys doing?”
Glen Pillalaruzo (NY)
N.A.N.A.
This American Life - 2
Everybody knew it was wrong
Credit Rating Agencies
Take a pool of 1000’s of risky mortgates create an investment that is “money good”
C.D.O (Collateral Debt Obligation)
Toxic waste investments
(33:33 musical interlude)
“Flip that House TV show”
Halloween 2006 - Bubble popped
Silverstate Mortgage 2/14/08
This American Life - 3
V alentines Day Massacre
(43:30 musical interlude)
back to Glen Pillalaruzo (NY)
back to Richard (the marine)
Creative broker made $18,500
Who owns Richard’s mortgage
180 degree turn Global Pool of Money
1970’s or 1930’s
This American Life - 4
And so what do you think?
What is the strangest thing that you learned in this radio broadcast? Tell me about it. Did you feel
angry - shocked - or just plain confused? Take the specific situation and talk about it.
Does this radio broadcast make you feel more or less confident that we can work our way out of the
mess that we are currently in? Explain why you feel like you do? Bring in specific examples from the
show.
This American Life - 5