Economy Sep 11 If the FDIC Asks for More Credit from Treasury, What Happens to Inflation? Question: With the FDIC’s funds diminishing, what are the chances it will tap its credit line to the Treasury? And what does that mean for inflation? Paul Solman: The more the…
Economy Jul 17 A Little Poetry for California’s Crisis Paul Solman: Questions keep coming in about the likelihood and consequences of a California default on its bonds. One unexpected result might be anger for the ages. Here’s Lake Poet William Wordsworth on the 1842 bond default of Pennsylvania,…
Economy Jun 16 Why Doesn’t the Government Simply Give Households Lots of Money to Stimulate the Economy? Question: One of the most popular suggestions I’ve heard for stimulating the economy is the federal government should give every household one or two million dollars. Would that work or would it create hyperinflation? Paul Solman: Let’s not be profligate…
Economy Apr 07 Why Does the United States Have to Borrow Money From Other Countries? Question: If the federal government (and/or Treasury) can just create money, why does it have to borrow it from other countries? Paul Solman: Great question. Because it’s so cheap to do so right now, the thinking goes, why…
Mar 19 Interest Rates on Credit Cards Are Going Up. Won’t That Further Hurt Average Joes? Question: About four weeks ago, my Chase credit card informed me that the interest rate on my current balance was changing from 5.99 fixed to 10.99 variable so that Chase could “maintain profitability” on my account. I knew that I… Continue reading
Mar 13 If China Is Worried About U.S. Debt, How Worried Should We Be? Question: China’s Premier Wen Jiabao said today he was “worried” about China’s $1 trillion investment in U.S. securities. So, should the United States be worried about his worry? Paul Solman: In response to any economic problem these days, I’m… Continue reading
Nov 18 How is the Economy Affecting Your Pocketbook? Paul Solman: In the spirit of turnabout being fair play, I’ve got questions for YOU. All of you. They’re for a TV story I’m doing. As an exclusive bonus for zealous Business Desk readers,… Continue reading
Oct 23 Can temporary total nationalization avoid the doomsday scenario? Question/Comment: Paul, I benefit from your explanations of complicated ideas, especially, the financial woes we’re now encountering. I wonder, however, why the doomsday scenario posed by the author of The Black Swan cannot be avoided by the government nationalizing the… Continue reading