- How can such enormous debt be sustainable and what happens to the world economy if the U.S. defaults?
Question/Comment: I am a Canadian. Unfortunately, 87 percent of our trade is with America. Consequently, U.S. recessions are felt more deeply in Canada. However, my questions are about the American debt. My understanding is that the debt could reach $10 … Continue reading
Question/Comment: A Fed rate cut presumably has a cost; where is that felt? Paul Solman: Encouraging folks who made bad decisions before – invested stupidly, say, in mortgage-backed securities – to invest stupidly again, since the Fed will bail them … Continue reading
U.S. House leaders met with Treasury Secretary Henry Paulson Wednesday to shape the details of a economic stimulus package amid fears of a recession and concerns over volatile financial markets, both in the U.S. and abroad. Two economists assess the proposals and discuss what’s most likely to boost the U.S. economy. Continue reading
President Bush Friday proposed a $150 billion economic stimulus package to address the nation’s mounting economic woes. NewsHour correspondent Kwame Holman reports on the announcement, then the NewsHour listens to the analysis of Brooks and Shields. Continue reading
- Could you explain to us novices what long term effects will the subprime lending debacle have on our economy?
Questions/Comment: Could you explain to us novices what long term effects will the subprime lending debacle have on our economy? What remedial measures need to be taken by the government and investors to limit the damage? Finally, which branch of … Continue reading
President Bush met with economic advisers Friday to consider possible stimulus packages, as the Labor Department announced that low hiring in December pushed the U.S. unemployment rate to 5 percent, a two-year high. Continue reading
The Federal Reserve proposed new mortgage regulations Tuesday that would help protect home buyers from shady lending practices following losses suffered in the risky “subprime” home loan category. A Wall Street Journal reporter looks at the recent mortgage crisis and how the new Fed rules may prevent future subprime problems. Continue reading
- How is the Fed to be blamed if financial institutions are reckless and greedy during periods of low interest rates?
Question/Comment: Many commentators have blamed the Fed for the mortgage mess. How is the Fed to be blamed if financial institutions are reckless and greedy during periods of low interest rates? Paul Solman: You’re cheating, Lloyd. This is two e-mails … Continue reading
The U.S. Labor Department announced Friday that both job growth and unemployment remained steady in the month of November, despite problems in the housing and credit markets. New York Times economy reporter David Leonhardt evaluates the new job numbers and the state of U.S. employment. Continue reading
President Bush announced a deal with mortgage lenders to freeze interest rates on some subprime mortgages due to move sharply higher soon that he hopes would slow the rate of home foreclosures. Economic analysts assess the value of the proposal and U.S. subprime troubles. Continue reading