( CNN Student News ) -- Record the CNN Special Investigations Unit Classroom Edition : Busted ! Mortgage Meltdown when it airs commercial-free on Monday , October 6 , 2008 , from approximately 4:10 -- 5:00 a.m . ET on CNN . ( A short feature begins at 4:00 a.m. and precedes the program . ) Program Overview . Home loans gone bad are wrecking the U.S. economy . CNN teams up with Fortune Magazine 's Andy Serwer to investigate how the housing boom went bust . The fallout begins on Wall Street , where billions of dollars in American mortgages were bought , bundled and sold around the world . CNN takes the high-stakes mortgage game to Delmonico 's , a Wall Street institution since 1837 , where the likes of J.P. Morgan and Andrew Carnegie once wheeled and dealed . Host Andy Serwer plays dealer and invites a few experts to face off on the mortgage crisis . Guest players include New York Times columnist and Princeton economist Paul Krugman , CNN 's Personal Finance Editor Gerri Willis , securities guru Janet Tavakoli , investment strategist Peter Dunay and mortgage broker Jon Shibley . Grade Levels : 11-12 , College . Subject Areas : Business , Economics , Finance , Social Studies , Life Skills . Objectives : . The CNN Special Investigations Unit Classroom Edition : Busted ! Mortgage Meltdown and its corresponding discussion questions and activity challenge students to : . Curriculum Connections . Economics America National Standards . Standard 10 : Role of Economic Institutions . Students will understand that : Institutions evolve in market economies to help individuals and groups accomplish their goals . Banks , labor unions , corporations , legal systems , and not-for-profit organizations are examples of important institutions . A different kind of institution , clearly defined and enforced property rights , is essential to a market economy . Standard 16 : Role of Government . Students will understand that : There is an economic role for government in a market economy whenever the benefits of a government policy outweigh its costs . Governments often provide for national defense , address environmental concerns , define and protect property rights , and attempt to make markets more competitive . Most government policies also redistribute income . The Economics America National Standards ( http : //www.ncee.net/ea/standards/ ) are published by the National Council on Economic Education ( http : //www.ncee.net/ ) . Social Studies . Standard V. Individuals , Groups and Institutions : Social studies programs should include experiences that provide for the study of interactions among individuals , groups , and institutions . Standard VI . Power , Authority , and Governance : Social studies programs should include experiences that provide for the study of how people create and change structures of power , authority , and governance . The Curriculum Standards for Social Studies ( http : //www.socialstudies.org/standards/strands/ ) are published by the National Council for Social Studies ( http : //ncss.org/ ) . Discussion Questions . Suggested Activity . Point out to students that one of the best ways for them to prepare for homeownership is to arm themselves with knowledge , and that the purpose of this activity is to help them obtain this information . Group students and instruct each group to prepare a PowerPoint presentation on the top ten things that first-time homebuyers should know before they shop for a mortgage . Groups may want to include information that addresses these points : . Have groups deliver their presentations to the class . If possible , invite a realtor or mortgage broker to attend the presentations and discuss the guidelines that are used to determine whether or not a homebuyer can afford a home . Extension . Following the presentations , direct students to print and online resources to identify homes that are for sale in their community , as well as the current interest rates for a 30-year fixed mortgage , a 15-year fixed mortgage and a 5/1 ARM . Next , have each student select a house and use an online amortization schedule calculator to determine what the monthly payment ( principle + interest ) would be for each type of loan , assuming that the loan was for 80 % of the purchase price of the home . Instruct students to identify the potential benefits and drawbacks of each type of loan , and to select the loan type that they feel would be the best choice for the homebuyer . Then , have each student determine the salary that he or she thinks a person would need to earn to afford the monthly mortgage payments . After students share their research , ask : . Keywords . mortgage , subprime , foreclosure , economy , interest rates , credit risk , housing prices , homeowner , real estate , mortgage broker , reverse redlining , Wall Street , Federal Reserve , securities , regulation , predatory lending , housing bubble , capitalism , recession , depression .
Learn about the different types of home loans that are available to consumers . Examine the current mortgage crisis in the U.S. Identify the economic and social ripple effects of this crisis . Determine ten things homebuyers should know before they shop for a mortgage .