Marketplace Senior Editor Paddy Hirsch gives a bubbly explanation of the intricacies of collateralized debt obligations those financial instruments that got us into this financial mess.

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When the analysts and experts talk about the current financial crisis, they often refer to credit default swaps. So, what exactly is a credit default swap? Marketplace Senior Editor Paddy Hirsch goes to the whiteboard for this explanation.

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2011 Knight Fellow Paddy Hirsch advocates for a "slow news" movement -- urging newsrooms to stop pushing their journalists to use every new technology or tool, which he argues is hurting quality and alienating audiences. More Knight Talks and information at: knightgarage.stanford.edu

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Consumer Confidence and Spiral Effect

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Lehman Brothers collapsed three years ago today, and nearly brought the entire financial system down with it. But Lehman wasn't the first casualty of the financial crisis. Six months earlier, Bear Stearns gave the world a preview of what was to happen to Lehman. To understand what took down Lehman, you first have to understand what brought down the Bear. Script and narration: Paddy Hirsch (paddyhirsch) Images and animation: comics journalist Dan Archer (@archcomix) Videographer and editor Angela Kim (@angelaishere) To see Dan Archer's comic strip on the chronology of the financial crisis at Marketplace: www.marketplace.org/whiteboard For Dan Archer's website, Archcomix: www.archcomix.com/

Paddy Hirsch

Private equity funds are groups of investors that flip companies for a profit. It's the technique they use that makes them special, as senior producer Paddy Hirsch explains. Follow Paddy Hirsch on Twitter: @paddyhirsch More Whiteboard: marketplace.org/whiteboard

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The term Re-hypothecation came up a lot during the MF Global meltdown. It's quite a common term in the securities market -- but what does it mean? Marketplace Money senior producer Paddy Hirsch explains. Follow Paddy Hirsch on Twitter: @paddyhirsch More Whiteboard: www.marketplace.org/whiteboard

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So Facebook has filed to go public. How exactly does an initial public offering work? Marketplace's Paddy Hirsch explains. Follow Paddy Hirsch on Twitter: @paddyhirsch More Whiteboard: marketplace.org/whiteboard

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Junk. Not a nice word. And when it comes to bonds, not a particularly accurate word, either. Junk is something useless, right? Something you want to toss in the trash? Well, "junk" bonds are definitely not useless. In fact they're extremely useful. Sometimes. Marketplace Money Senior Producer Paddy Hirsch explains what a junk bond really is. For more Whiteboard: www.marketplace.org/whiteboard Follow Marketplace: @mktplaceradio Follow Paddy Hirsch: @paddyhirsch

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Marketplace Money Senior Producer Paddy Hirsch explains why Europe need dollars instead of euros as the EU tries to sort out their financial problems. More Whiteboard: www.marketplace.org/whiteboard Follow Marketplace: @mktplaceradio Follow Paddy Hirsch: @paddyhitsch

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The Federal Housing Administration is being criticized for underwriting subprime loans, which critics say could lead to another wave of loan failures. Senior Editor Paddy Hirsch explains subprime lending and its inherent risks.

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Its the title of a dubious financing transaction that Lehman Brothers used in 2008 to make its balance sheet look healthier than it really was. Senior Editor Paddy Hirsch takes a stab at explaining how Repo 105 worked. Hear more about the fallout of the Lehman report at Marketplace: marketplace.publicradio.org

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With the government borrowing even more money, and pushing America's debt levels sky high, there's a lot of talk about a double-dip recession. Paddy Hirsch explains what a double dip is, and what it might look like.

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Confused about the theory of how interest rates can affect economic growth? Senior Editor Paddy Hirsch is here with a handy analogy.

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We all know what a takeover is. That's when one company agrees to be bought by another. But what happens when companies don't agree and the takeover goes hostile? Senior Editor Paddy Hirsch explains.

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The meltdown of the credit and mortage markets will inflict damaging effects upon our economic future that we may not anticipate — much like the fallout from a nuclear explosion. Senior Editor Paddy Hirsch explains why Marketplace is using the term in its coverage. More coverage of the financial crisis is at marketplace.org/financialcrisis

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Lots of people are puzzling through the SECs fraud allegations against Goldman Sachs, trying to work out how it allegedly committed fraud. The way Paddy Hirsch sees it, its a bit like a bookie and gambler teaming up to fix a horse race.

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Pressure from the US may have pushed China to unpeg its currency from the dollar this week. But how did that peg work in the first place? Paddy Hirsch explains.

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Bankers have been debating bringing back the uptick rule for months, if not years. This week the debate made it to Capitol Hill. Senior Editor Paddy Hirsch gives a quick and dirty explanation of what the uptick rule is, and why it could be reinstated.

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Hedge funds used to occupy a dark, undisturbed corner of the financial world, but over the last year theyve been thrown under the spotlight. Still, many people dont know exactly what hedge funds are, or what hedging actually means. Senior Editor Paddy Hirsch explains.

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Leveraging or borrowing has been cited as one of the contributors to the financial crisis. Senior Editor Paddy Hirsch explains how the move to deleverage or reduce debt is prompting wild market swings and concerns about deflation.

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Senior Editor Paddy Hirsch explains why problems with certain European countries sovereign debt could blow the house down.

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Collateralized loan obligations are back! Paddy Hirsch explains what CLOs are, and why theyre important.

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As markets have deteriorated, write-downs have figured prominently in more and more corporate reports. What are write-downs all about? Marketplace Senior Editor Paddy Hirsch explains.

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Credit default swaps? Theyre complicated -- and scary! The receipt you get when you pre-order your Thanksgiving turkey? Not so much. But they have a lot in common: Theyre both derivatives. Senior Editor Paddy Hirsch explains.

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Europe is teetering on the edge of a credit crisis, and markets all around the world are tumbling as investors worry about contagion. Its all about banks not trusting each other, as Senior Editor Paddy Hirsch explains.

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The practice of short selling has been blamed for the collapse of several major companies' shares during the financial crisis. What is short selling? Marketplace Senior Editor Paddy Hirsch explains. More coverage of the financial crisis is at marketplace.org

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In stories about the auto companies and the banks, we've been hearing a lot about debt-to-equity swaps, and exchanging preferred shares for common stock. To get how those swaps work, you first need to understand a company's capital structure. Senior Editor Paddy Hirsch explains.

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Senior Editor Paddy Hirsch explains why the repurchase (or repo) market is vital part of the financial system, and why the government is considering changes to it. More coverage of the financial crisis is at marketplace.org/financialcrisis

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The shadow banking system is a key component of the US economy, but the financial crisis has frozen it solid. Senior Editor Paddy Hirsch explains what shadow banking is and why it's important enough to warrant its own bailout, called the Term Asset-Backed Securities Loan Facility, or TALF.

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So much government debt! But what's the difference between the Treasury's bills, notes and bonds? Senior Editor Paddy Hirsch explains. More coverage of the financial crisis is at marketplace.org/financialcrisis

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Marketplace Senior Editor Paddy Hirsch explains how banks have gotten frozen in their tracks, awaiting a rescue.

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Dark pools are exchanges where people trade stocks anonymously. Senior Editor Paddy Hirsch explains how they work, and why the SEC is considering regulating them.

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Now the Federal Reserve has effectively cut the target lending rate to zero, it only has one more weapon in its arsenal. Quantitative easing. Senior Editor Paddy Hirsch explains what this nuclear option it is, and what the Fed hopes itll do.

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The Federal Reserve said this week it will no longer buy mortgage backed securities from Fannie Mae and Freddie Mac. Some people worry mortgage rates could rise as a result. Senior Editor Paddy Hirsch explains why.

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Mortgages arent the only financial instruments that get turned into securities. Marketplace Senior Editor Paddy Hirsch explains how companies make money by buying credit card debt and bundling it. More coverage of the financial crisis is at marketplace.org/financialcrisis

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If youve been following the problems encountered by the banks, youve probably come across the phrase toxic assets. Theyve poisoned banks balance sheets and brought them to the brink of failure. But what is a toxic asset, exactly? Marketplace Senior Editor Paddy Hirsch explains.

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Many asset-backed securities have been downgraded from AAA recently. But at least one issuer has miraculously repackaged a downgraded deal to make some of its bonds worth a AAA rating again. Senior Editor Paddy Hirsch explains.

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With interest rates in the US at historic lows, some economists are worried that Americans involved in the carry trade could drive down the value of the dollar. Senior Editor Paddy Hirsch explains how the carry trade works, and why some people are worried about its return to the markets.

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Some of the rapid drops weve seen in the financial markets in recent weeks have been fueled by margin calls. How do margin calls work? Marketplace Senior Editor Paddy Hirsch explains.

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Many small businesses get the cash they need to operate and expand from so-called factors. One of the biggest factors in the business is CIT, and with CIT on the ropes, small businesses are worried. Senior Editor Paddy Hirsch explains what factoring is, and how it works.

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Most economists agree that inflation of about 2% or 3% annually is a natural function of a growing economy. But people are worried government stimulus measures could spark much higher inflation. Senior Editor Paddy Hirsch explains.

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The part of the financial system that lends the most money to Americans remains almost untouched by regulation. It's shadow banking, as Paddy Hirsch explains.

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Credit default swaps have worsened market anxiety because they are conducted in the over-the-counter market, where regulations are few and information about risk is often hidden. Marketplace Senior Editor Paddy Hirsch explains.

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Marketplace Senior Editor Paddy Hirsch explains Fed Chairman Ben Bernankes latest plan to get the economy moving and the risk involved.

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It looks certain that some version of the so-called Volcker rule will make it into the financial reform package being prepared by the US Congress. Paddy Hirsch explicates what the Volcker rule is. More at Marketplace.org

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The US Treasury Department plans to recruit private investors to take toxic assets off banks balance sheets. Senior Editor Paddy Hirsch explains how the plan is supposed to work.

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A debate is raging in Washington, DC, about how to deal with Americas foreclosure problem. One proposal is to restructure the loans using a tool usually seen in bankruptcy courts: The cramdown. Senior Editor Paddy Hirsch explains.

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