For those of you who are having trouble understanding the ins and outs of the current turmoil in the financial sector (and who doesn’t?), I’d like to recommend this EconTalk podcast in which Arnold Kling provides a good introduction to the mortgage market, and its breakdown. As a former Freddie Mac employee he also offers some insights into what it is they (and Fannie Mae) do.
Finally he puts forward some interesting ideas for what to do now, politically implausible as they may be. Do listen to it!