Dean Baker has a good take on the general cluelessness of NPR’s financial correspondent Adam Davidson about the credit crunch. They seem to think that it’s all the “subprime meltdown”, when it’s a more systemic problem.

I would generalize further regarding the press.

At this point in time, almost all of the Financial reporters are well behind the curve. We don’t have a problem with a small segment of the home mortgage market. We have a situation where credit is drying up because people cannot determine risk in any meaningful way.