Treasury Secretary Henry Paulson said Wednesday that investment banks may require the same government oversight that commercial banks face if they will borrow federal money. Economic analysts weigh the pros and cons of increased federal regulation. Continue reading
- Do you think that overproduction or declining profit rates have contributed to the present subprime loan crisis?
Question/Comment: Karl Marx, in his work “Capital,” alluded to the idea that overproduction contributed to a general historical tendency of capitalism to be undermined by declining returns on capital. Do you think that overproduction or declining profit rates have contributed … Continue reading
The Bush Administration and six of the nation’s largest banks agreed on a plan Tuesday that would delay some home foreclosures by 30 days, allowing lenders to negotiate more affordable terms. Treasury Secretary Henry Paulson discusses the details of the proposal. Continue reading
The Federal Reserve lowered its benchmark interest rate by half a point Wednesday — the second rate reduction in eight days in a bid to help ease pressure on jittery financial markets. Wall Street Journal economics editor David Wessel examines the Fed’s latest move. 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
Federal Reserve Chairman Ben Bernanke has called for government action to revive the slowing U.S. economy, in a key test of his tenure as the head of the central bank. Two business reporters consider how Bernanke is responding to the economic downturn and how his background has prepared him to be a key decision maker. Continue reading
President Bush spoke with congressional leaders Thursday about an economic rescue package as Fed chief Ben Bernanke testified on Capitol Hill that it is “critically important” that a stimulus effort take effect quickly. Members of the House budget panel detail the debate over what provisions the package should include. 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