Jun 16 Why Doesn’t the Government Simply Give Households Lots of Money to Stimulate the Economy? Question: One of the most popular suggestions I’ve heard for stimulating the economy is the federal government should give every household one or two million dollars. Would that work or would it create hyperinflation? Paul Solman: Let’s not be profligate… Continue reading
Jun 11 What Happens to California State Bonds if the State Goes Bankrupt? By Business Desk Question: I live in California and own California State Bonds. What happens to state bonds if the state goes bankrupt? Paul Solman: They stop paying, both interest and principal. That’s what a default IS. Last September 15, Lehman Brothers… Continue reading
Jun 09 If Banks Still Followed Mark-to-Market Rules, What Would Their Losses Look Like? Question: What is the actual amount that banks have “lost” if banks still had to follow mark-to-market rules? My understanding is that our large banks would be insolvent by almost a trillion dollars if they had to declare what… Continue reading
Jun 03 Smart Design for a Complicated Crisis A short and simple story of the credit crisis? Do you have 11 minutes? That's how long it takes designer Jonathan Jarvis to break down one of the most complicated financial news stories of the year in his video, "The… Continue reading
May 01 Watch For Those With Low Incomes, Help Creating a Credit History Spencer Michels reports on a program that helps low-income people with no credit gain access to loans and financial counseling. Continue watching
May 01 How Do We Regulate Credit Rating Agencies? Question: How do we supervise and regulate the credit rating agencies which, so poorly and perhaps illegally overrated so many derivatives? Paul Solman: I don’t know. One proposed reform has been that the investors pay the ratings agencies for… Continue reading
Apr 23 Watch Obama Calls for Reform of Credit Card Practices President Barack Obama put his support Thursday behind a credit card law that will regulate the sudden rate increases and late fees that cause financial trouble for millions of consumers. A financial reporter mulls the state of U.S. credit and… Continue watching
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 16 Watch Foreclosures Rise in New Sign of Housing Market Trouble New government numbers show that home foreclosures increased 24 percent in the first quarter of this year as compared to the first quarter of 2008 as a voluntary foreclosure moratorium ended on March 31. Analysts discuss the data and the… Continue watching
Apr 10 Watch Obama Optimistic, Yet Cautious on Economic Recovery Outlook The president said Friday he saw "glimmers of hope" in increased lending to small businesses, but the economy was still under "under severe stress." Analysts discuss the signs of economic recovery and the road ahead. Continue watching