The Executive Editor of The Deal wrote a snotty attack on me.

My favorite part:

"But it's going to be fun. There's no jargon, I promise," reporter Adam Davidson reassures his listeners, as if the mere utterance of the term "mortgage-backed security" would be enough to send NPR fans in search of Howard Stern. "In fact, in a minute or so, you'll meet a real amusement park sideshow carny," he chirps.
Lucky us.

She goes on. Apparently, I'm information-free.

I got my knickers in a bit of a twist and was writing a snotty response back to Ms. Kantrow. Instead, I decided to raise the issue here. This cuts to the very heart of what we're doing here on Planet Money, so I thought it was worth discussing.

The entire reason for Planet Money is that a bunch of people at NPR feel that much economic reporting uses too much jargon, too much insider knowledge. It speaks to the already informed and doesn't help the broad public understand what is going on in the global economy and why it matters.

Oh, also, we feel that journalism in general, and broadcast radio in particular, should be fun and interesting and compelling to listen to. We also feel that there are ways of getting complex ideas across that don't involve long quotes from established experts on Wall Street or in Academia.

I'm really proud of the story Kantrow made fun of. I had a complex and important issue to get across -- that Fannie Mae and Freddie Mac play a crucial role in the global economic system. I could call any number of economists and get them to say that.

Or, I could think of a fun and compelling way to get across the idea. I felt like I'd rather hear my version.

To be a bit of a jerk, I'll do a comparison.

Here's how my story starts:

We are going to talk about how the global economy works here, but it's going to be fun. There's no jargon, I promise. In fact, in a minute or so, you'll meet a real amusement park sideshow carnie. But first, some basics. Fannie Mae and Freddie Mac were designed by Congress to serve one purpose: to allow more Americans to buy homes. They do this by effectively making mortgages cheaper. But over the past few years, entirely by accident, Fannie Mae and Freddie Mac have taken on a new role: They recycle the dollars we send to China back into the United States.

To me: there's information there. It's also, I hope, a bit welcoming to those who don't fully understand Fannie and Freddie (read: almost everyone) or what role they play in the global economy.

Here's how an article from Kantrow's magazine begins

The takeover of the Federal Home Loan Mortgage Corp., or Freddie Mac, and the Federal National Mortgage Association, or Fannie Mae, by the federal government is proving to be a test for the way credit default swap traders handle large-scale defaults. And, while it's early yet, the credit derivatives market seems set to handle the issue relatively painlessly, despite its size and scope.

Which story would you rather read?

Which story has more information?

Which story is likely to teach more Americans about the importance of these institutions?

My vote: mine.

Why? Because I don't introduce unusual terms (such as credit default swaps, credit derivatives, etc) and then not explain what they are. Because I am telling a story and not just listing facts. Because I don't assume this is complicated and confusing and only the already-aware will ever understand.

This is going to happen a lot, so I should calm down, relax. The official Wall Street press is going to get angry that we are taking their subject and, well, having some fun with it.

What do you think?

categories: Fun With Economics

5:35 - September 14, 2008

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