Oct 08 Are there really $64 trillion of bad mortgages out there? Question/Comment: You mentioned in your report that there are $64 trillion in CD swaps out there. AIG only had a few hundred billion. Who has the rest? Are there really $64 trillion of… Continue reading
Oct 08 Financial Crisis Illustrates Influence of Emotions, Behavior on Markets By PBS News Hour The past month of corporate failures, government rescues and stock market gyrations has visibly shaken the confidence of Wall Street tycoons and ordinary investors alike. Continue reading
Oct 08 How much of investment banks’ portfolios are tied up in the stock market? Question/Comment: What are the connections between investment banks/houses and the stock market? How much of these investment banks’ portfolios are tied up in the stock market, and how much is in other places (like loans to businesses)? Paul Solman: Investment… Continue reading
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