Question: Why were pension funds allowed to “invest” in a hedge fund? Hedge funds are nothing more than gambling. Paul Solman: Because pension funds are supposedly big enough and therefore sophisticated enough to know what they’re doing and take considered … Continue reading
Question/Comment: How is the Bernard Madoff financial fiasco tied to the global economic meltdown? Is it just a timely coincidence? The thought of a connection somehow seems important. Paul Solman: Let’s see if I can resist the urge to make … Continue reading
- My conservative friends are convinced that this economic mess is the result of changes to Fannie and Freddie’s lending policies forced on them by the Democrats.
Question/Comment: My conservative friends are convinced that this economic mess is the result of changes to Fannie and Freddie’s lending policies forced on them by the Democrats. My own theory identifies our chronic balance of payments as the chief culprit. … Continue reading
Question/Comment: If banks do not have money to lend, how can Citicorp, Wells Fargo, etc. come up with billions to purchase failing banks and finance firms? Paul Solman: They aren’t forking over any cash. “Purchase” means subsume. Wachovia becomes part … Continue reading
Investment bank Lehman Brothers announced plans Wednesday to sell a majority stake in its investment management business as the company struggles to stay afloat after reporting a record quarterly loss of about $4 billion. 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
As home foreclosures reached a record high Thursday, President Bush announced a deal with mortgage lenders to freeze interest rates on some subprime mortgages due to move sharply higher soon. Treasury Secretary Henry Paulson discusses the details of the proposal. Continue reading