Economy May 20

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Why Were Banks Allowed to Bet on Derivatives?

Question: How did the dollar volume of U.S. mortgages get to be such a huge dollar problem? Did derivatives do that? Why are investment banks allowed to bet 34 dollars for only one they have? Paul Solman: First, a word…

Economy Dec 18

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Fed Backs New Rules Aimed at Curbing Risky Home Loans

The Federal Reserve proposed new mortgage regulations Tuesday that would help protect home buyers from shady lending practices following losses suffered in the risky "subprime" home loan category. A Wall Street Journal reporter looks at the recent mortgage crisis and…

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