Oct 06 Can you explain, simply, what a credit default swap is? Question/Comment: Can you explain, simply, what a credit default swap is? Paul Solman: I sure hope so. Basically, a credit default swap or “CDS” is an insurance contract to protect against bankruptcy. Say… Continue reading
Oct 03 Watch Sweeping $700 Billion Financial Rescue Wins Final Approval The U.S. economy faced fresh troubles Friday as President Bush signed a $700 billion bailout bill. Analysts weigh the economic picture and Paul Solman recaps week's events. Continue watching
Oct 03 Watch After Week of Debate, House Passes Bailout Plan Members of the House approved a modified federal rescue plan Friday, moved by the Senate's support and mounting concerns over the stability of the U.S. financial sector. Kwame Holman reports on the bill's passage. Continue watching
Oct 03 Wouldn’t mortgage-backed securities gain value if homeowners could refinance their homes? Question/Comment: This is what I don’t get: If the problem is that the mortgage-backed securities hold little value because a lot of people are unable to pay their mortgages, wouldn’t those securities gain value if homeowners were allowed to refinance… Continue reading
Oct 03 Should I move now whatever money I can to federally insured savings accounts? Question/Comment: I am 62, hoping to retire at 67. I have no debt and my money is invested (following the advice of a pricey financial adviser) in both equities and guaranteed income. I’ve lost a big chunk of dough in… Continue reading
Oct 03 House Passes $700 Billion Financial Bailout Bill By Admin, PBS News Hour The House of Representatives passed hotly-debated legislation Friday to bail out the troubled financial industry by a 263-171 vote, agreeing to the Senate bill that passed on Tuesday and sending it to the White House for President Bush's signature. Continue reading
Oct 03 Employers Slash 159,000 Jobs in September By Admin, PBS News Hour Employers cut payrolls by 159,000 in September, the most in more than five years, the Labor Department reported Friday, raising new fears that the economy has lost its footing and is sliding into a recession. Continue reading
Oct 03 Wachovia Spurns Citibank, Will Be Acquired by Wells Fargo By PBS News Hour Wachovia Corp. changed course on a buyout deal Friday, agreeing to be acquired by Wells Fargo & Co. in a $15.1 billion all-stock deal, reversing an earlier agreement to be acquired by Citigroup. Continue reading
Oct 02 House Leaders Count Votes, Target GOP Holdouts in Attempt to Pass Rescue Package By Admin, PBS News Hour The Treasury Department's plan to buy bad mortgage-related securities returns to the House Friday, as lawmakers lobby their own party members and hope tax cuts and financial rule changes will convince holdout Republicans to vote yes. Continue reading
Oct 02 Watch Questions Remain on Bailout Plan as House Prepares to Vote Anew The Senate on Wednesday approved a financial rescue package that could cost up to $700 billion -- the largest government intervention in U.S. history. Analysts discuss whether the plan will be enough to fix the ailing economy. Continue watching