Apr 22 Where Can I Find Updates on the U.S. Money Supply? Question: The money supply of the United States is such a key economic indicator, why don’t we get a reading of it on a daily basis? It seems like it would be a lot more valuable gauge of the economy… Continue reading
Apr 21 How Significant Are the Latest Earnings from Wells Fargo? Question: Wells Fargo just announced quarterly financials in very positive position. Do you think this is a really significant event? How should we evaluate the latest numbers? Paul Solman: Your guess is as good as mine, Sheldon. I’ll quote again… Continue reading
Apr 21 If AIG Uses Its Bailout to Pay Off Other Debts, Is That a Ponzi Scheme? Question: If we are shoveling money into AIG and they are pushing it out the back door to pay off bad debts and then banks announce profits, does this mean we are in a… Continue reading
Apr 20 How Should We Interpret the String of Positive Earnings Reports from U.S. Banks? Question: After three major banks – Citigroup, JP Morgan, and Goldman Sachs – announced better-than-expected earnings last week, Bank of America announced more than $4 billion in first-quarter profits today. How should we interpret this string of good earnings reports?… Continue reading
Apr 20 Who Pays the Rating Agencies? Question: Who pays the rating agencies, like Moody’s? What is the source of their income? Paul Solman: That’s been the scandal. They’re paid by the issuers of the bonds and stocks they rate. They thus have a huge incentive not… Continue reading
Apr 17 Why Doesn’t the Yuan Trade Like Other Currencies? Question: Why don’t we let the yuan trade like other currencies? Even now, the yuan has an 20 percent or higher edge on other currencies because of the existing rules. Paul Solman: Now, now, Maya, as my dad used to… Continue reading
Apr 16 Is Congress to Blame for Failing to Regulate the Financial Sector? Question: On the Newshour a few weeks ago, there was a piece about the bonuses being paid to AIG’s Financial Products Division. In that coverage, one guest mentioned regulators were blocked from overseeing… Continue reading
Apr 16 In Case You Missed It: The Paradox of Thrift Editor’s Note: On last night’s NewsHour, Paul examined the paradox of thrift. Here’s MIT’s Simon Johnson explaining the phenomenon in the segment: SIMON… Continue reading
Apr 15 Are Americans Becoming Savers? Tonight’s NewsHour features a piece called “The Paradox of Thrift.” The phrase refers to the potential downsides of squirreling money away, especially if all of us do it at once. While saving is often a good thing – and something… Continue reading
Apr 15 Can We Prepare for Inflation? Editor’s Note: The government reported Wednesday that consumer prices fell in March, indicating a weakened demand for goods and services. But while this price drop raises the specter of deflation, many economists contend that the real risk to… Continue reading