Oct 08 Fed, European Banks Coordinate Interest Rate Cut By PBS News Hour Facing worries of a global recession, the Federal Reserve and six other major central banks from around the world announced a coordinated half a percentage point interest rates cut on Wednesday. Continue reading
Oct 07 Watch Federal Reserve Employs Tools to Ease Credit Fears Global markets continued to fluctuate Tuesday, as the Federal Reserve announced plans to buy up short term debt in a bid to ease strain on the credit sector. Reporters and analysts examine the Fed's moves. Continue watching
Oct 07 Why were there no checks on these fraudulent practices and unscrupulous mortgage brokers? Question/Comment: I have a hard time understanding how some of these mortgages were ever permitted to happen. In particular, mortgages for which absolutely no documentation for verifying income or anything else were required. This allows borrowers to lie on their… Continue reading
Oct 07 For those of us who are not accountants, can you help explain how bad mortgages work? Question/Comment: For the non-accountants among us: Hypothesize that a bank has $1000 in bad mortgages (cdos, etc) that have dropped to $100 in value. How does this adversely affect the bank if it simply holds onto them and no longer… Continue reading
Oct 07 Fed Aims to Unfreeze Credit Markets With Plan to Buy Short-Term Debt By PBS News Hour The Federal Reserve announced a plan Tuesday to buy short-term debt directly from businesses, in an effort to stimulate paralyzed credit markets and get cash to companies that need it. Continue reading
Oct 07 Watch Weak Collective Action Threatens Global Credit Crisis The U.S. financial meltdown has become a globalized crisis, spreading to Europe and emerging markets. The managing director of the International Monetary Fund explains the importance of restoring confidence among banks and consumers, coordinating efforts among countries and the IMF's… Continue watching
Oct 07 Watch Risky Credit Default Swaps Linked to Financial Troubles Insurer AIG is among the financial titans to hit troubled times in the recent Wall Street crisis. Paul Solman takes an in-depth look at the woes at AIG and explains how credit default swaps played a role its financial turbulence. Continue watching
Oct 06 Watch Bailout Fails to Stem Credit Fears in Financial Markets Despite the approval of a sweeping $700 billion bailout bill on Capitol Hill, the downward march of the financial sector continued Monday as major world and U.S. markets plummeted. Continue watching
Oct 06 Are there any banks or investment houses not involved in risky practices? Question/Comment: Are there any banks or investment houses not involved in risky practices? I would like to deal with a financial institution that has integrity. Where can I find it? Paul Solman: No, banks and investment banks are in an… Continue reading
Oct 06 Stocks Drop Over Continuing Credit Fears By PBS News Hour U.S. stocks fell more than 6 percent Monday morning and the Dow Jones industrial average fell below 10,000 for the first time since October 2004. Continue reading