May 04 How Are Banks Profiting on Mortgage Refinancing? Question: Banks like Wells Fargo and JP Morgan recently announced better-than-expected profits. The given reason is that they are making money on the refinancing of mortgages. Doesn’t mortgage refinancing imply lower rates of interest and repayment? How can they be… Continue reading
Apr 30 Reader Responses: The Paradox of Thrift You can watch one of Paul’s recent Making $ense pieces, The Paradox of Thrift, below. Here are a few reader reactions and Paul’s responses. Question: I have a question related to your recent segment, Paradox of Thrift: Aren’t the… Continue reading
Apr 13 Where Is the Bailout Money Hiding? Question: You did a great job explaining where the money for the bailouts comes from. Can you now tell us where, exactly, it is going? If there are so many trillions of dollars sloshing about, how come the… Continue reading
Apr 10 Why Doesn’t the Treasury Turn Over Banks to the FDIC for Inspection? Question: Why didn’t the U.S. Treasury turn over the banks to the FDIC and let the FDIC do an audit and dispose of the rotten assets? Paul Solman:… Continue reading
Apr 06 Where Does Money Go When It’s Taken Out of the Stock Market? Question: As the Dow continues to fall, I keep wondering where the money is going. Obviously, money is being pulled out of the stock market, even though we all are still buying and using products, and companies are still functioning. Continue reading
Mar 23 The Toxic Asset Plan Explained By Business Desk After the Treasury Department released its plan today to rid banks of so-called “toxic assets” by enticing private investors to partner with the government, Paul Solman answered questions on the basics of the plan. What exactly are… Continue reading
Mar 23 New Program Aims to Entice Private Investors to Help Banks By Admin, PBS News Hour The Obama administration unveiled the latest program in its financial rescue plan Monday to draw private investors into a partnership with a new federal entity that could buy up troubled assets weighing down the nation's banks. Continue reading
Mar 17 How Do We Get Banks Lending Again? Question: Given our collective financial plight and our need for credit to survive, how do we get banks to be banks again (read: lend)? Can it be legislated – and if not, how can we surmount our impasse? Paul Solman:… Continue reading
Mar 16 Obama Cites ‘Outrage’ Over AIG Bonuses By PBS News Hour President Barack Obama said Monday that he intends to stop American International Group from paying out millions in executive bonuses, as concern intensified over the insurance giant's handling of federal rescue money. Continue reading
Mar 06 Unemployment Rate Soars to 8.1% in February By Admin, PBS News Hour U.S. employers cut 651,000 jobs in February, the Labor Department reported Friday, pushing the nation's unemployment rate to 8.1 percent, the highest it has been since 1983. Continue reading