Apr 14 Why Don’t We Tax the Buying and Selling of Stocks? Question: How much revenue would a 1 percent federal tax on the buying and selling of stocks produce? We have federal taxes on gasoline, so why not the selling of stocks? Surely, someone who is spending $1,000 can afford a… Continue reading
Apr 13 Where Is the Bailout Money Hiding? Question: You did a great job explaining where the money for the bailouts comes from. Can you now tell us where, exactly, it is going? If there are so many trillions of dollars sloshing about, how come the… Continue reading
Apr 11 In Case You Missed It: Clawbacks and CEO Pay On Friday’s NewsHour, Paul Solman reported on the continued anger over extravagant CEO pay at companies receiving billions in bailout dollars and the options being explored to regain some of the money. ]> And… Continue reading
Apr 10 “We Want Our Money Back” A story about clawbacks slated to run on the NewsHour tonight features a protest disrupting a speech by Goldman Sachs CEO Lloyd Blankfein. Yesterday, the protesters struck again during a session with Larry Summers,… Continue reading
Apr 10 Why Doesn’t the Treasury Turn Over Banks to the FDIC for Inspection? Question: Why didn’t the U.S. Treasury turn over the banks to the FDIC and let the FDIC do an audit and dispose of the rotten assets? Paul Solman:… Continue reading
Apr 09 What Is the Rate of Hidden Unemployment? Question: What is the current rate of hidden unemployment in the United States, and is it trending upwards? Paul Solman: It’s not very hidden. Every month, the U.S. government reports a range of unemployment measures. The most inclusive is… Continue reading
Apr 08 As the Amount of Money in Circulation Increases Rapidly, How Does the Fed Prevent Hyperinflation? By Business Desk Question: If the Fed and Treasury have increased the amount of money in circulation by $1.6 trillion in an effort to stave off deflation in the near term, how does the Fed take this money back out of circulation to… Continue reading
Apr 07 Why Is Deflation Bad? Question: Why is deflation so bad? I have certainly benefited from the drop in gas prices, so I wonder what is wrong with things becoming cheaper in general? And wouldn’t that make up for previous inflation? Paul Solman: Another good… Continue reading
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… Continue reading
Apr 06 Where Does Money Go When It’s Taken Out of the Stock Market? Question: As the Dow continues to fall, I keep wondering where the money is going. Obviously, money is being pulled out of the stock market, even though we all are still buying and using products, and companies are still functioning. Continue reading