Assignment Return to Giant Pool of Money

By now you all know we are just beginning to emerge from economically hard times, and most of you know that the "housing crisis" has been implicated as one of the major contributors. But what exactly was the housing crisis? This assignment consists of listening to an hour-long radio program that addresses that question.

1. Listen to Return to the Giant Pool of Money (This American Life, Episode 390 - in case you have to navigate to it yourself). If you have a hearing disability where you need the transcript and cannot find it online email me at least a week before the due date.

2. In a few paragraphs (the equivalent of one single-spaced page and no longer), summarize the show and talk about why it interested you. In your summary, correctly use three terms from the margins of your textbook. Do not repeat a term that another student has used or I cannot give you credit (you are welcome to put in a "reserve" post letting other students know which terms you are going to use). Underline the terms, have them be from three different chapters, and note which chapters they are from. Do not attach this - put it in the text of the board.

3. Make sure your summary is written such that I can tell you listened to the show thoroughly the whole way through, and also that you did not just copy another student. The basic content of the posts will be similar, of course, but there is a whole hour's worth of talking, so you will be able to customize your summary.

Important Hint: The show uses the term "greed", but it's a normative term as it denotes a value judgment on behavior. Those value judgments aren't a part of positive economics; rather economics focuses on behavioral analysis. So be sure not to use the term greed or other normative terms or statements (or you risk getting a zero on your post). It's fine to discuss things in terms of costs and benefits as long as you have a source for your interpretation of the costs or benefits.