Sep 21 Why has the Fed repeatedly lowered interest rates? Question/Comment: Repeatedly, the Fed has lowered interest rates, and repeatedly, the market has responded, and repeatedly, it has continued its downward trend. It is obvious that that does not work. Do they want simply to lower interest rates and find… Continue reading
Sep 19 Does the current financial meltdown prove that our economy is based more on just smoke and mirrors and not on true productivity? Question/Comment: Paul: Does the current financial meltdown prove that our economy is based more on just smoke and mirrors (risky investments) and not on true productivity (ie. goods and services)? And what will be necessary for our economy to truly… Continue reading
Sep 19 Could you explain what a derivative is and how this is part of the Wall Street problem? Question/Comment: On the NewsHour tonight, the speaker stated that some the problem with the fall of Wall Street is related to use of derivatives and lack of regulation of this. Could you explain further what a derivative is and how… Continue reading
Sep 19 What is the source of the money for rescuing large financial firms? Question/Comment: Thank you for your simplified, insightful, and humorous segments on the NewsHour explaining economic complexities. My question: With the federal government $9.5 trillion in debt, this year’s budget deficit projected at $410 billion, and tax revenues insufficient over the… Continue reading
Sep 19 Are our problems limited to the corrupt actions of individual investment firms? Or does this crisis go deeper? Question/Comment: You explain the investment aspect of this crisis very well. I’d like to know more about how the market’s collapse reflects the structural problems of the U.S. economy. Are our problems limited to the corrupt actions of individual investment… Continue reading
Sep 19 Is it possible, as a worst case scenario, for the Feds to close the banks as FDR did in the 1930’s? By Business Desk Question/Comment: I hope you will not think me too crazy for asking this question. Is it possible as a worst case scenario for the Feds to close the banks as FDR did in the… Continue reading
Sep 19 What if the brokerage firm that handles my IRA fails? Question/Comment: Everyone seems to be concerned about the financial institutions failing. I have three questions: If institutions such as Fanny Mae, Freddie Mac, AIG fail and others fail or taken over by the government,… Continue reading
Sep 18 What is responsible for the daily rise and fall of the value of the dollar? Question/Comment: What is responsible for the daily rise and fall of the value of the dollar ? Paul Solman: The DAILY rise and fall? As many factors as you can name. As in the… Continue reading
Sep 18 How deeply has the home foreclosure problem affected retirees? Question/Comment: How deeply has the home foreclosure problem affected retirees? Paul Solman: Wasilla? THE Wasilla? (Indeed, there IS a Marian Elliott in Wasilla, according to Zaba Search, so I suppose so.) Welcome. Small town;… Continue reading
Sep 17 Last year Lehman Brothers’ CEO made $71 million. Now his company has collapsed. How much will he make this year? Question/Comment: Last year Lehman Brothers’ CEO Richard Fuld, Jr. made $71 million. Today his company collapsed. How much will he make this year? Paul Solman: I don’t know about this year. You’ve covered last. Continue reading