Dec 14 Watch Small Businesses Buckling Under Recession's Credit Freeze Tom Bearden examines how small businesses' inability to get credit is playing out in Colorado. Continue watching
Sep 02 If Big Banks Were Allowed to Fail, Would the FDIC Need a Bailout? Question: Some have said that big banks, like Citi or Bank of America, should have been allowed to fail. Given their size, could the FDIC really have covered the insured deposits? Or would the… Continue reading
Aug 27 Watch FDIC Losing Money as Many More Banks Face Collapse The FDIC reported that its insurance fund shrank 20 percent in the second quarter. Jeffrey Brown speaks with a reporter and analyst about troubled banks. Continue watching
Aug 06 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… Continue reading
Aug 05 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… Continue reading
Jul 29 What About Banks That Didn't Take TARP Money? By Business Desk Question: Thank you for your illuminating illustration of the fiasco involving our banks on PBS. How many banks in this country did not take TARP money and why… 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
May 04 How Are Banks Profiting on Mortgage Refinancing? Question: Banks like Wells Fargo and JP Morgan recently announced better-than-expected profits. The given reason is that they are making money on the refinancing of mortgages. Doesn’t mortgage refinancing imply lower rates of interest and repayment? How can they be… Continue reading
Apr 30 Reader Responses: The Paradox of Thrift You can watch one of Paul’s recent Making $ense pieces, The Paradox of Thrift, below. Here are a few reader reactions and Paul’s responses. Question: I have a question related to your recent segment, Paradox of Thrift: Aren’t the… 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