NPR reporters explain toxic assets by buying their own
How many stories have you read that talk about toxic assets? To get up close and personal with the concept and therefore be better able to explain it to their audience, two NPR Planet Money reporters bought their own toxic asset. It is a bond consisting of home mortgages — of which only 30 percent of the borrowers are current on their payments. Using $1,000 of their own money, they bought the toxic asset to provide “an up-close look at what’s happening with the bonds that fueled the housing boom, then fell apart in the bust.” They also created an interactive graphic
. Reporters Chana Joffe-Walt and David Kestenbaum write:
“Finally, we find a beautiful, totally toxic asset at… a good price: $36,000. Back in the bubble, somebody paid $2.7 million for this thing. We buy a piece… for $1,000. It’s going to be our encyclopedia of the financial crisis.”
Today’s Tip: Sometimes getting involved in a story will allow your audience to better understand what’s happening.
The reporters’ participation and investment in this story provide a more compelling look than simply telling us what toxic assets are. They are also using the opportunity to seek previous owners of their toxic asset or mortgage holders whose loans were bundled into it by appealing for them to e-mail the reporters. Those who respond will also help put a human face on toxic assets.
