This American Life, a podcast show produced by Chicago Public Radio, dives into the credit crunch and explain the mess in a way you can understand. The hedge funds and banks have created a daisy chain of credit and insurance for the credit that depends completely on the chain remaining intact. If they chain breaks anywhere, others in the chain now have risk they may not even know about.
And the house of cards collapses. That’s what’s happening now and it’s really, really scary stuff.