Another email from an old friend: “Is this event the Berlin Wall of Free Market Economics? Or even, as the press backs away from the hotness of the story, the Berlin Wall of Free Market Economics crashing not with a … Continue reading
- Is the American dream of home ownership and subsequently loaning money to unqualified home buyers a major cause of this crisis?
Question/Comment: Lack of transparency and regulation appear to be at the heart of the current financial crisis. Didn’t the Senate Banking Committee and the Republicans attempt to ward this off with a reform bill in 2005? Is the American dream … Continue reading
Question/Comment: Hi Paul, isn’t the tumbling marketplace a result of the various regulations? Whether we had fewer regulations recently than in the past, it’s not as though this meltdown is occurring in a free market. If our property, current and … Continue reading
- When running as intended, what cost difference does Fannie and Freddie make to the mortgage payment of the average house?
Question/Comment: How do other nations subsidize housing (to the same end that Fannie and Freddie do in the U.S.)? When running as intended, what cost difference does Fannie and Freddie make to the mortgage payment of the average house? If … Continue reading
Federal Reserve Chairman Ben Bernanke outlined a new set of mortgage-lending rules Tuesday, which will be aimed at shielding future homebuyers from risky lending practices and avoiding a repeat of the country’s current mortgage crisis. Continue reading
Question/Comment: What are the pros and cons for denominating oil worldwide in U.S. dollars, versus in some other currency or basket of currencies? Paul Solman: For whom? The big pro, from the US point of view, is that if oil … Continue reading
Flood fears eased in Iowa City Monday, as a string of towns in the state’s south and east along the Mississippi River prepared for new problems caused by a recent bout of torrential rains and bad weather. Continue reading
- I always hear about the Chinese keeping their currency at an artificial rate to help exports. Where would the cost of doing that show up?
Question/Comment: I always hear about the Chinese keeping their currency at an artificial rate to help exports, but I know from trying to hold a lid on a boiling pot that the pressure is going to come out somewhere. If … Continue reading
Two weeks after Paul Wolfowitz resigned as president of the World Bank, President Bush nominated former U.S. trade representative Robert Zoellick to lead the organization. An economics professor and a journalist discuss the challenges facing the bank’s next president. Continue reading