Jun 02 What Is a Naked Short? UPDATED JUNE 4: Question: Can you please explain what is meant by a “naked short”? I’ve heard naked shorts being referred to as counterfeit. Is that accurate?… Continue reading
Jun 01 How Economics Affects the Oil Spill Blame Game Paul Solman: The underwater gusher in the Gulf has critics pointing fingers every which way. British Petroleum is the obvious first choice, but the Obama administration is another easy target: It happened on their watch. Or you can blame the… Continue reading
May 28 Masters of the Underworld Paul Solman: Since Friday posts stay up for the weekend, allow me to share this cartoon, sent to me this morning by a friend, on the abstrusegoose cartoon website: “The Devil Went Down to Wall Street.” I’m not in… Continue reading
May 27 The Ongoing Credit Crunch Paul Solman: Conservative economist Ed Yardeni, whom I cited earlier this week, wrote Thursday morning about an issue that we address on the NewsHour soon: the continued “credit crunch” — unavailability of bank loans — in our supposedly recovering… Continue reading
May 26 What’s Going on in Europe? Paul Solman: A departure from the usual Q-and-A format this morning to address an issue on the minds of many: what’s going on in Greece…and Europe? Conservative economist Ed Yardeni, whom we’ve consulted from time to time over the years,… Continue reading
May 25 Are Commodity Prices in for a Decline? Question: Do you think we are in a long-term commodity boom, or will the rise in commodity prices come to an end if China suffers a set-back, as Marc Faber seems to think will happen later this year? Paul… Continue reading
May 24 Paul and Larry Kotlikoff Debate our Economic Future I was having an amiable argument the other day about our economic future with Boston University economist Larry Kotlikoff (The Coming Generational Storm; Spend ‘til the End; Jimmy Stewart is Dead, which argues for what he… Continue reading
May 21 How Do Hedge Funds Work? Question: How do hedge funds work? How do investors gain money from betting on losses? Paul Solman: One way is to borrow an asset like a stock from a broker and promptly sell it, betting it will go down in… Continue reading
May 20 Are Banks Borrowing from the Fed at Low Interest and Making Money Buying U.S. Treasuries? Question: I read recently that the “big banks” are borrowing from the Fed at 0.1 percent and buying U.S. Treasuries with the borrowed funds, thereby collecting around 3 percent. Can this possibly be true? Paul Solman: They have been doing… Continue reading
May 18 How Soon Will the Greek Scenario Occur in the U.S.? Question: How far in the future will the Greek tragedy scenario arrive at U.S. shores?? Paul Solman: A week? A decade? Never? The world of finance is too complex to predict, but here, to bolster collective confidence, are a few… Continue reading