After a liquidity crisis in 2008, insurance giant AIG is preparing for a $35 billion deal to sell its Asia unit to Britain’s Prudential. Jeffrey Brown talks to Andrew Ross Sorkin of the New York Times about AIG’s attempts to repay its government bailout. 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
Congressional leaders are showing signs of fatigue and frustration over continuing negotiations. Reps. Barney Frank and Mike Pence discuss the progress towards a workable plan. Continue reading
President Bush addressed recent shifts in the financial sector, central banks flooded currency markets with cash in an attempt to spur banks to begin lending again and the presidential candidates offered fresh reactions to the crisis. Kwame Holman and Judy Woodruff recap the economic news of the day.
- If excess liquidity has caused these investments that are now going bad, how does the Fed increasing liquidity with lower interest rates help the economy?
Question/Comment: If excess liquidity has caused these investments that are now going bad, how does the Fed increasing liquidity with lower interest rates help the economy? Paul Solman: Because it prevents the system from freezing up entirely. It’s a calculated … Continue reading
The Federal Reserve is expected to cut interest rates to help shore up the nation’s economy. The NewsHour’s Paul Solman examines the Federal Reserve’s plans and what they mean for the economy. Continue reading