Thursday, 15 January 2009

Excellent programme from Evan Davis

I don't know about you but I'm not too knowledgeable about the technical side of economics though I certainly feel that I ought to be. Like most it is inevitable that for me the micro economics of my own situation is going to be the greatest concern during the current downturn, to the extent that the big picture can pass one by. So thirsting for more information but in an easily digestible form I was glad that I watched the first of three programmes by Evan Davis on BBC2 last night under the title 'The City Uncovered'. Following an introduction about how banking evolved in the first place Evan went on to explain the mystique of securitisation, an idea that seemed to be the 'magic bullet' for banks when originally conceived only for the whole edifice to crumble as we now know to our cost. Like so many innovations the people involved could only see the benefits, commonsense went out the window and the downsides weren't examined. Add to the mix the greed of certain bankers and governments looking the other way when more and more high risk credit was being shelled out and I suppose it was inevitable it would all end in tears.

A couple of links here and here provide some more background to an excellent programme.

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