Aug 10 What Are Warrants Issued by Financial Institutions? Question: If you have not already done so, would you please explain the warrants that seem to be troubling the financial institutions at the moment? If you’ve already done so, I apologize for asking unnecessarily. Paul Solman: Hey, even if… Continue reading
Aug 07 During August, Public Weighs in on Reform The Senate remained in session this week, but as House members headed home to their districts the focus of health care reform efforts moved off Capitol Hill. Continue reading
Aug 07 Is the "Perfect Storm" Metaphor Appropriate for the Economic Crisis? “The metaphor of the perfect storm is inapt. The captain’s action does not influence the height of the waves. Fed Chairman Bernanke, in contrast, participated in making and implementing interventions that worsened the financial crisis last year.” – from… Continue reading
Aug 07 U.S. Unemployment Rate Dips Slightly to 9.4% By Dave Gustafson For the first time since April 2008, the U.S. unemployment rate fell slightly in July, to 9.4 percent, down from 9.5 percent in June. Continue reading
Aug 07 Watch Other News: Markets Jump on Positive Jobs Report In other news, Wall Street rallied on a Labor Department report that showed the U.S. economy lost fewer jobs than expected in July, and President Obama signed a $2 billion extension of the "cash for clunkers" incentive program. Continue watching
Aug 07 Watch Job Losses Ease in July, but Economic Picture Still Mixed The U.S. economy shed fewer jobs than expected in July, according to new Labor Department figures. Experts discuss what the data says about the job market and an economic recovery. Continue watching
Aug 06 Are Credit Card Companies Raising Rates to Repay the Government? Question: I received a call from my sister this morning asking me for help regarding her credit card debt. According to her bank and credit card issuers, they are raising their credit card interest rates because they have to pay… Continue reading
Aug 06 If Banks Just Changed Their Accounting Rules, Why Do They Need Bailout Money? Question: If the banks are doing just hunky-dory due to the change in accounting rules, then why do they need any bailout money? Paul Solman: Hunky-dory? You might find this online etymology of the term amusing. I have to… Continue reading
Aug 06 Watch Dealers, Detroit Look for Boost With 'Clunkers' Extension The government's popular "cash for clunkers" incentive program -- aimed at replacing gas guzzlers with more fuel-efficient vehicles -- nearly exhausted its $1 billion budget in just days. Analysts look at who benefits from the program and its effects on… Continue watching
Aug 05 Should We Have Dealt With 'Too Big to Fail' in the 1980s? Question: If you go back and look at the recession of 1982, you will see that the Fed bailed out large banks mainly due to bad LDC loans. I think the precedent of moral… Continue reading