Mar 27 How Can Assets Be Toxic If They Were Insured? Question: Why does everyone avoid discussions about PMI (Personal Mortgage Insurance), which protects the lenders from loss and is required on all loans with less than 20 percent down (except VA & Federal Housing… Continue reading
Mar 23 The Toxic Asset Plan Explained By Business Desk After the Treasury Department released its plan today to rid banks of so-called “toxic assets” by enticing private investors to partner with the government, Paul Solman answered questions on the basics of the plan. What exactly are… Continue reading
Mar 17 New Home Construction Jumps as Wholesale Prices Edge Up By PBS News Hour The Commerce Department reported Tuesday that construction of new homes and apartments jumped 22.2 percent in February compared with January, pushing total activity to a seasonally adjusted annual rate of 583,000 units. Continue reading
Mar 11 What Are Mark-to-Market Rules? Question: What are mark-to-market rules? And should they be changed? Paul Solman: When it comes to the current crisis, this is the question (or one major question): To “mark to market” or not to “mark to market”? Consider a… Continue reading
Feb 18 What Causes Mortgage Rates to Rise and Fall? Question/Comment: What causes mortgage rates to rise and fall? Will the stimulus or the remaining TARP money have any affect on mortgage rates? I heard of an attempt to temporarily lower rates to four… Continue reading
Feb 18 Obama Unveils $75 Billion Mortgage Plan By PBS News Hour One day after signing a $787 billion stimulus bill into law, President Barack Obama outlined a $75 billion plan to help stem foreclosures, which is at the heart of the nation's deepening economic woes. Continue reading
Feb 16 Why Won’t Banks Lend Money? Editor’s Note: Paul recently answered “Five Good Questions” on the economy for the PBS Engage blog. You will also be able to find those answers here on the Business Desk all week. Question/Comment:… Continue reading
Feb 10 Are Companies Able to Function Without Loans? Note from Paul Solman: We haven’t had a “guest vetter” here at the Business Desk for some months. But interviewing MIT’s Simon Johnson the other day for a piece on ‘good bank… Continue reading
Feb 06 Economic Crisis May Take Toll on Health Services in Developing Nations By Admin, PBS News Hour As the global economic crisis continues to unfold, concern is growing over maintaining funding for health services in developing countries that rely on foreign aid to provide necessary treatments. Continue reading
Feb 06 Does it Make Economic Sense for Homeowners to Immediately Pay Off Their Mortgage? Question/Comment: Given that U.S. banks appear to need cash to stabilize themselves and begin extending credit, would it not make economic sense for homeowners with mortgages to pay off the balance of their loans as soon as possible if not… Continue reading