The Business Desk

Did Hank Paulson Just Want to Save Goldman Sachs?

By Business Desk

Question: [In the Bernanke on the Record forum hosted by the NewsHour,] Chairman Bernanke did not mention the bailout of Goldman Sachs — the first bank to receive such funds. Was it more critical to the survival of the…

Ask Ellen Ruppel Shell, Author of ‘Cheap’, Your Questions About the High Cost of Discounts

Paul Solman: Tonight’s NewsHour will feature an interview with Ellen Ruppel Shell about her new book, Cheap: The High Cost of Discount Culture. Our brains are practically hard-wired to love a bargain. But do we then end up with…

What Are Warrants Issued by Financial Institutions?

Question: If you have not already done so, would you please explain the warrants that seem to be troubling the financial institutions at the moment? If you’ve already done so, I apologize for asking unnecessarily. Paul Solman: Hey, even if…

Is the “Perfect Storm” Metaphor Appropriate for the Economic Crisis?

“The metaphor of the perfect storm is inapt. The captain’s action does not influence the height of the waves. Fed Chairman Bernanke, in contrast, participated in making and implementing interventions that worsened the financial crisis last year.” – from…

Are Credit Card Companies Raising Rates to Repay the Government?

Question: I received a call from my sister this morning asking me for help regarding her credit card debt. According to her bank and credit card issuers, they are raising their credit card interest rates because they have to pay…

If Banks Just Changed Their Accounting Rules, Why Do They Need Bailout Money?

Question: If the banks are doing just hunky-dory due to the change in accounting rules, then why do they need any bailout money? Paul Solman: Hunky-dory? You might find this online etymology of the term amusing. I have to…

Should We Have Dealt With ‘Too Big to Fail’ in the 1980s?

Question: If you go back and look at the recession of 1982, you will see that the Fed bailed out large banks mainly due to bad LDC loans. I think the precedent of moral…

Why Does the Govt. Pay Farmers to Not Grow Crops?

Editor’s Note: Robert Frank, who recently guest-blogged for several weeks here at the Business Desk with answers to some of life’s economic ironies, once again answers questions posed by viewers. Question: Why does the government pay farmers not to…

Why Do Cars Have Fuel Doors on Different Sides?

Editor’s Note: Robert Frank, author of The Economic Naturalist’s Field Guide: Common Sense Principles for Troubled Times, recently guest-blogged for several weeks here at the Business Desk with answers to some of life’s economic ironies: why brides…

What’s the Basic Function of the Stock Market?

Question: I would like to ask you two simple (some might say “simple-minded”) questions, which may be variants of a single question. No one has yet given me a clear, straightforward answer. Perhaps you can and will. 1) Why does…