- If the amount of $62 trillion is owed for credit default swaps, who or what entity eventually pays that?
Question/Comment: If the amount of 62 trillion dollars is owed for credit default swaps, who or what entity eventually pays that? Not even the U.S. government can make up for an amount which is 13 times our GDP. Paul Solman: … Continue reading
- Isn’t much of the $55 trillion dollar market made up of hedge funds and other institutions betting that bonds and other debt products fail?
Question/Comment: I watched your piece on credit default swaps, which was illuminating but I think missed one point. Isn’t much of the $55 trillion dollar market made up of hedge funds and other institutions betting that bonds and other debt … Continue reading
Question/Comment: How could a U.S. domestic problem (the housing bubble) become a global liquidity crisis between banks putting all banks and consequently the economies worldwide in trouble? What needs to be done to prevent a global economic meltdown? Paul Solman: … Continue reading
Lawmakers have not been able to agree on a plan with the White House, nor with each other, choosing not to enact a bill for the near future. NewsHour correspondent Kwame Holman discusses the dealings on Capitol Hill. Continue reading
Question/Comment: Are you willing to argue that the subprime mortgage practices that started this problem can be deemed to be fraudulent in any way? Should anyone be convicted of anything for the devastation wreaked upon so many home buyers by … Continue reading
Unmanageable loans and debt of firms like Lehman Brothers, Fannie Mae, Freddie Mac and AIG led to declines in their credibility and the end of growth based on credit. Paul Solman explains how these giants lost control of their finances and why credit plays a central role. Continue reading
Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson urged Congress to pass a $700 billion financial bailout Tuesday, saying the national economy could suffer more if too much time passes. Continue reading
Most U.S. stocks rose following the federal government takeover of mortgage giants Fannie Mae and Freddie Mac, but questions lingered over the impact on the housing market and the credit crisis. Business reporters and analysts mull the implications of the deal. Continue reading
After a recap of the weekend’s news on the government takeover of housing giants Fannie Mae and Freddie Mac, acting Treasury Undersecretary Andrew Ryan details the move. Continue reading
The ease with which Americans can make purchases using credit cards and loans has led to increased personal debt. Jeffrey Brown speaks with Stuart Vyse, author of “Going Broke: Why Americans Can’t Hold On To Their Money,” about the roots of the country’s financial troubles. Continue reading