Jun 11 Retail Sales Up for First Time in Three Months By PBS News Hour Fewer Americans filed claims for unemployment benefits last week and retail sales grew in May for the first time in three months, raising expectations that the recession could be abating. Continue reading
May 20 Why Were Banks Allowed to Bet on Derivatives? Question: How did the dollar volume of U.S. mortgages get to be such a huge dollar problem? Did derivatives do that? Why are investment banks allowed to bet 34 dollars for only one they have? Paul Solman: First, a word… 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
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 18 Obama Holds Town Hall in Costa Mesa, Calif. By Admin, PBS News Hour President Barack Obama held a town hall meeting in Costa Mesa, Calif., Wednesday, where he spoke about the AIG controversy, his plan for the budget and economic recovery plans. Continue reading
Mar 12 How Are Losses on Mortgage Derivatives Calculated? Question: If there is no way to currently value the mortgages on which the value of derivatives (collateralized mortgage obligations, etc.) depend, how are losses on those derivatives — such as AIG $62 billion… Continue reading
Nov 25 Fed Commits $800 Billion to Unfreeze Credit Markets, Boost Consumer Spending By PBS News Hour The Federal Reserve announced two new programs Tuesday aimed at unfreezing credit for homebuyers, small businesses and consumers. Continue reading
Nov 18 Bernanke, Paulson Defend New Bailout Strategy By Admin, PBS News Hour One week after the Bush administration changed the focus of the $700 billion rescue plan for Wall Street, Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson defended the new strategy Tuesday when they testified before House members. Continue reading
Oct 27 The government hopes the $700 billion bailout will get banks to lend again. Why not require them to do so? Question/Comment: So the government hopes the $700 billion bailout will get banks to lend again. Why not require them to do so? According to the Wall Street Journal some of the banks are using the money for possible acquisitions, for… Continue reading
Sep 22 Congress Mulls $700B Financial Rescue Plan; Morgan, Goldman Shift Operations By PBS News Hour Lawmakers faced an intense round of negotiations Monday over a proposed $700 billion financial rescue plan as Congressional Democrats called for a cautious approach to stabilizing troubled financial markets and shoring up Wall Street's balance sheet. Continue reading