After announcing record annual losses Tuesday, General Motors said that it would offer buyouts for all 74,000 of its union employees — allowing GM to hire lower-wage workers — to help reduce costs. New York Times business reporter Micheline Maynard offers perspective on the auto industry’s financial struggles. 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
Question/Comment: As it is with all financial crisis, I guess, a lot of the damage stems from uncertainty. No one knows how much bad debt is out there and who’s holding it. My question is: why is it not possible … 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
- My understanding is that it takes .75 gallons of fuel to make one gallon of ethanol. If this is true, why is this fuel source so widely acclaimed as a great idea?
Question/Comment: There are two issues I’d like to see you tackle that I have not seen anyone in the media deal with. The first has to do with the sensibility of ethanol as a renewable fuel source. My understanding is … 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