For class today, you listened to a podcast from NPR’s This American Life and Planet Money that sought to explain mortgage-backed securities and the housing crisis. You also read an article about the recent problems at Knight Capital.
Today in class you will think about these two events to try to come up with potential solutions to the problems presented. The catch is that the solutions cannot rely solely on the action of national governments, or on the actions of consumers (in other words, a “buyer beware” model). You should also include a brief explanation of why those two models of solving the problem wouldn’t be ideal.
Before you present that orally in class, however, I would like you to fire up your neurons by posting a brief paragraph (no more than 4 sentences) on how the podcast and the article are related. The goal will be to post that quickly enough so that your classmates can read it while they’re working on the rest of the assignment.
Note: if you were not present in class today, you should write out an answer to all of the above and post it in the comments in order to get credit for the 4th blog assignment.