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
Apr 15 Consumer Prices Fall in March on Energy Costs By Admin, PBS NewsHour Consumer prices fell in March, the government reported Wednesday, indicating that weakened demand for goods and services during the economic downturn has kept a damper on energy and food costs. 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
Mar 31 Watch G20 Leaders to Tout Competing Ideas on Recovery Some European leaders are at odds with President Obama's economic agenda, which encourages more stimulus spending. Analysts assess the challenges at this week's G20 summit. Continue watching
Mar 27 Was Depression-Era Debt as High as It Is Now? Question: When we hear comparisons between today’s economy and that of the Great Depression, I wonder: Had as many people and institutions been as highly leveraged then as now? Were personal and institutional debt as high then as they are… Continue reading
Mar 19 Watch Germany Navigates Course Through Economic Slump German economic minister Karl-Theodor zu Guttenberg speaks with Paul Solman about the country's view on economic stimulus measures and how Europe is handling the global financial crisis. Continue watching
Mar 18 Why Are Pension Funds Investing in Hedge Funds? Question: Why were pension funds allowed to “invest” in a hedge fund? Hedge funds are nothing more than gambling. Paul Solman: Because pension funds are supposedly big enough and therefore sophisticated enough to know what they’re doing and take considered… Continue reading
Mar 17 Watch When the Government Writes Checks, Where Does the Money Come From? With billions of dollars paid out or promised for financial industry bailouts and the stimulus bill -- and more requests on the way -- Paul Solman looks at where the government is getting the money to pay for the rescue… Continue watching
Feb 03 Was the Wall Street Money Real or Imagined? Question/Comment: Could you explain where all the money went that supposedly vanished during the Wall Street meltdown? Who has it? Was it imaginary or did it really exist? Paul Solman: All Wall Street values are imaginary. All money is imaginary. Continue reading