Posts Tagged ‘National Public Radio’

Texting to Save Haiti

Tuesday, January 19th, 2010

Texting for Haiti a bold new way to donate money to earthquake relief.Text “HAITI” to 90999  on your cell phone and $10 will be donated to the American Red Cross for earthquake relief in the Western Hemisphere’s poorest nation.  That $10 donation will appear on your next cell phone bill - a quick and painless way to speed relief to a country reeling in the face of 7.0-magnitude quake that leveled much of the capital city of Port-au-Prince.

According to National Public Radio, “This is the first time that there has been a massive giving via text message in the United States.  mGive is the company that’s been working with charitable organizations to set up this donation method.  Tony Aiello, the CEO, says “people are used to interacting with local news sites via cell phone and text message.”  So far, the Red Cross has raised more than $4.7 million for Haitian relief, a number that is expected to grow.

Haitian musician Wyclef Jean, who runs the Yele Haiti charity, asked his Twitter followers to text “YELE” to 501501 to automatically donate $5.  So many responded that the website crashed for a time.

Charities are certain to look back on the Haitian earthquake as a game-changing event, the time when cell phones and social media came into their own as fundraising techniques.  The question is whether social media and new technologies generate more donations, or simply redirects contributions that otherwise would have been made online or by mail.

“The Giant Pool of Money”

Thursday, May 21st, 2009

$70 trillion dollars.  That’s all the money in the world, or to get technical, the subset of global dollarsavings known as fixed-income securities.  And it almost doubled from $36 trillion in just six years.  How did this happen?

The Federal Reserve presided over the creation of what we have learned (the hard way) is a monster of unregulated investment vehicles run amok, resulting in the global credit crisis.

In the words of National Public Radio’s international business reporter Adam Davidson, “What he (former Federal Reserve Chairman Alan Greenspan) is saying is he’s going to keep the Fed Funds rate at the absurdly low level of one percent.  It tells every investor in the world:  you are not going to make any money at all on U.S. treasury bonds for a very long time.  Go somewhere else.  We can’t help you.  And so the global pool of money looked around for some low-risk, high-return investment.  And among the many things they put their money into, there was one thing they fell in love with.”

Investment companies fell in love with securitizing mortgages, bundling them into enormous pools - in some cases, pools of as many as 16 million loans — and selling them in shares to investors.  To make the pool of mortgages even larger, they created vehicles like adjustable-rate mortgages (ARMs), subprime mortgages and no-income, no-asset loans that allowed people to buy homes or take out home equity loans that they simply could not afford.  Last 02192006_iraglassSeptember, this house of cards came crashing down, setting off the global credit crisis and making an ongoing recession the worst in a generation.

Click here  to listen to the full “The Giant Pool of Money” podcast from “This American Life” to learn exactly what happened and why.  I know of no better description of how the recession happened.