Question/Comment: So the government hopes the $700 billion bailout will get banks to lend again. Why not require them to do so? According to the Wall Street Journal some of the banks are using the money for possible acquisitions, for…
Question/Comment: The ratio between commercial bank money and currency in circulation has been widening for decades. While the Federal Reserve’s monetary policy has protected our economy from runaway inflation, it may have been starving the market for currency. Now that…
By PBS NewsHour
A worldwide slide in markets continued Monday on fears that governments' efforts to stabilize the volatile global economy will not be able enough to prevent a global recession.
By Admin, PBS NewsHour
As the world's industrialized nations continued to roll out more plans to bolster flagging economies, European leaders called for a review of the global financial system.
In a new effort to shore up confidence in the economy and inject life into frozen credit markets, the U.S. Treasury will inject $250 billion into several large banks.
Question/Comment: How could a U.S. domestic problem (the housing bubble) become a global liquidity crisis between banks putting all banks and consequently the economies worldwide in trouble? What needs to be done to prevent a global economic meltdown? Paul Solman:…
Question/Comment: If banks do not have money to lend, how can Citicorp, Wells Fargo, etc. come up with billions to purchase failing banks and finance firms? Paul Solman: They aren’t forking over any cash. “Purchase” means subsume. Wachovia becomes part…
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…
Question/Comment: If real estate is indeed the basis of our current economy, surely we cannot let it free fall. Could property prices be temporarily “set” at the value of the total mortgage on the property? And on any new property…
Question/Comment: My question about the mortgage crisis is this: how exactly did the banks lose money? It seems that people who put deposits on the loans that were foreclosed upon lost their money, not the banks. The banks…
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