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 just check under the LP’s.
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. Just
follow along and comment to stay on track. I’ve also got copies of the show transcript. That too, is
linked on the blog. By following either or both - you will better stayed intuned to the show.
Remember we will take this pod cast on in three parts. You can stop me and talk anytime you want
to through out the show. The more you stop and talk, the better I think that you ‘ll understand this
issue in the long run.
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 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 all you did was copy somebody
else and that you have no idea what you have written - I will give you a zero. So, stop me and ask
questions throughout. I’ve given us three class days to take this issue on...if we need more we will
take it.
I think in the end you will find this entire study very interesting...and troubling.
This American Life - “The Giant Pool of Money”
1 Richard the Marine
2 N.I.N.A. Loan
3 Clarence Nation (looking for $540,000)
This American Life - 1
(7:55 musical interlude)
WHAT HAPPENED?
4 Global Pool of Money
5 $70 Trillion / How much is it?
6 In 2000 - $36 trillion goes to $70 trillion
7 Treasury Bond Fed rate of 1%
8 Mortgage Backed Securites (what are they)
(16:00 musical interlude)
9 Mike Garner of Silver State Mortgage (Nevada) the bartendar
This American Life - 2
10 - Important Definitions to understand
Stated Income Verified Asset
Stated Income Stated Asset
No Income Verfied Assest
No Income No Asset
(16:00 musical interlude)
11 Did you ever think what are you guys doing?
12 Glen Pillalaruzo (NY)
Glen’s day job
Glen’s nightlife
13 N.I.N.A.
14 Everybody knew it was wrong
15 Bad Computer Data
This American Life - 3
16 Credit Rating Agencies
17 Take a pool of 1000’s of risky mortgates create an investment that is “money good”
18 C.D.O (Collateral Debt Obligation) -
19 Jim Finkle at Dynamic Credit
20 (31:00) C.D.O. A Giant Pool of Pools
21 Toxic waste investments
(33:33 musical interlude)
STATION IDENTIFICATION BREAK - Ira Glass
This American Life - 4
22 “Flip that House TV show”
23 Halloween 2006 - Mike Francis - Bubble popped
24 (37:44) Home Equity Loans
25 Back to Nevada Silverstate Mortgage 2/14/08
26 V alentines Day Massacre
(42:00 musical interlude)
27 back to Glen Pillalaruzo NYC Night Club guy
28 back to Richard (the Marine)
This American Life - 5
29 NACA Neighborhood Assistance Corporation of America / Kerry Campbell
(42:00 musical interlude)
30 Richard the Marine’s original mortgage
31 Creative broker made $18,500
32 Who owns Richard’s mortgage????
33 Jim Finkle How many do we own - parts of 16 million
34 Global Pool of Money 180 degreeTurnaround (FREEZING CREDIT)
35 1970’s or 1930’s
This American Life - 6
And so what do you think?
1 - 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.
2 - Who are you the most angry at in this entire mess? Tell me who and tell me why.
This American Life - 7
3 - 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.
4 - If you were President Obama and you had to deal with the fall out from this mess, and you had
to get the country’s banking sector moving again, in order to get the economy going again. What
would you do?
This American Life - 8