President Barack Obama gave a prime-time press conference Monday to make his case to the public for an economic stimulus plan and to respond to other policy issues. Following is the text of Mr. Obama’s prepared statement and the full audio of the president’s remarks and his answers to reporter questions. Continue reading
Paul Solman explores a solution to the financial crisis that’s gaining steam: creating “bad banks” and “good banks.”
Question/Comment: Given that U.S. banks appear to need cash to stabilize themselves and begin extending credit, would it not make economic sense for homeowners with mortgages to pay off the balance of their loans as soon as possible if not … Continue reading
President Barack Obama and Treasury Secretary Timothy Geithner announced Wednesday a pay cap of $500,000 for top executives at companies that receive federal dollars under the Troubled Asset Relief Program for struggling banks and corporations. Continue reading
- When the Government Issues New Treasury Debt and Puts it into the Banking System, Does That Mean More Dollars in the World, and Thus Inflation?
Paul Solman: Several weeks ago, former Fed Chairman and economic boom cheerleader Alan Greenspan said this before Congress: “Those of us who have looked to the self-interest of lending institutions to protect shareholders’ equity, myself included, are in a state … Continue reading
New data show that consumer spending fell 3.1 percent in the third quarter, its sharpest drop in 28 years. New York Times columnist David Leonhardt examines the latest numbers. Continue reading
Question/Comment: Is it correct to assume that the credit crisis is mostly psychological? Banks hold bad paper which needs to be exposed and somehow that debt needs to be paid or securitized again, so that banks regain confidence in other … Continue reading
- The government hopes the $700 billion bailout will get banks to lend again. Why not require them to do so?
Question/Comment: So the government hopes the $700 billion bailout will get banks to lend again. Why not require them to do so? According to the Wall Street Journal some of the banks are using the money for possible acquisitions, for … Continue reading
- Now that governments have to inject billions into world banks, do you think monetary policy should be adjusted to better maintain a balance between currency in circulation and bank funds?
Question/Comment: The ratio between commercial bank money and currency in circulation has been widening for decades. While the Federal Reserve’s monetary policy has protected our economy from runaway inflation, it may have been starving the market for currency. Now that … Continue reading