How Michael Jackson Brought Down Wall Street aka The Fed Bailout Explained

23 Sep

If you’ve been scratching your head trying to make sense of what the hell is going down on Wall Street and why it’s impacted the global economy (credit default swaps?), Radar Online’s editor-at-large, Choire Sicha, has written a brilliant piece explaining the Fed bailout:

“So, you know how you like to buy songs on iTunes? There’s so many different songs. Some of them are awesome, and some of them are lousy. And you only get a little audio preview of a song before you buy it, so really you dunno if it’s any good before you buy it.

That is what a share in a company is like. You know it might be good? But really you don’t know what’s going on behind the scenes.

Now, imagine how great it would be if you could sell back your mp3s to iTunes! Like, you could buy a song when it was really unpopular, and it’d be like 29 cents. And then when it was really popular—like some Kanye jam was getting lots of radio play—it’d go way up to 99 cents. Then you could sell it, and you could keep the profit.

So that is basically the stock market, where they sell shares, except in the stock market, you’re buying a little bit of a company, instead of on iTunes, where you’re buying a little bit of a rapper or a band.”

Trust me, it only gets better. Educate yourself and find out how Michael Jackson brought down Wall Street: The Stock Market and the Bailout for Kids.

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