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Credit Crisis

Stocks zigzag, end lower after emergency rate cut

AP | JOE BEL BRUNO and TIM PARADIS | Posted 05.25.2011 | Business

NEW YORK — A stock market empowered by an emergency interest rate cut tried to find some stability Wednesday, rallying several times before anot...

Coordinated Rate Cuts A Big Help

Wall Street Journal | David Wessel | Posted 05.25.2011 | Business

So will coordinated rate cut do the trick? Probably not, but it's a big help. The world's major central banks, laboring to avoid the mistakes that th...

Credit Crisis: How Did We Get Here?

Alan Schram | Posted 05.25.2011 | Business
Alan Schram

This is a clear case of management's greed and stupidity, but the blame also lies with homeowners, who wanted bigger homes than they could afford, and were happy to overpay for them and over-borrow to finance them.

Federal Reserve Orders Emergency Rate Cut To 1.5%

AP | JEANNINE AVERSA | Posted 05.25.2011 | Business

WASHINGTON — The Federal Reserve, acting in coordination with other global central banking authorities, cut a key U.S. interest rate by half a p...

Buying A Car? Bring Cash

New York Times | Bill Vlasic and Nick Bunkley | Posted 05.25.2011 | Business

DETROIT -- The few consumers who are buying new cars are being forced into bigger down payments or all-cash deals in the latest sign of how the credit...

Paulson Says Administration Is Working Fast, But Some Banks Will Fail

AP | MARTIN CRUTSINGER | Posted 05.25.2011 | Business

WASHINGTON — The Bush administration is considering taking ownership stakes in a number of U.S. banks as one option it might use to deal with a ...

Bernanke: Crisis could prolong economic pain

AP | JEANNINE AVERSA | Posted 05.25.2011 | Business

WASHINGTON — Federal Reserve Chairman Ben Bernanke warned Tuesday that the financial crisis has not only darkened the country's current economic...

Federal Reserve Unveils Short-Term Loan Plan

AP | JEANNINE AVERSA | Posted 05.25.2011 | Business

WASHINGTON — The Federal Reserve is providing more details about when it will make billions of dollars in short-term loans available to squeezed...

Credit: Man's Confidence in Man

Dr. R. Keith Sawyer | Posted 05.25.2011 | Business
Dr. R. Keith Sawyer

"Commercial credit is the creation of modern times and belongs only to the most enlightened and best governed nations." I stumbled on this frieze after giving a talk at Harvard Business School.

Fed move boosts European stocks

AP | PAN PYLAS | Posted 05.25.2011 | Business

LONDON — World stock markets on Tuesday recovered some of their hefty losses from the previous day, helped by a steady opening on Wall Street af...

Dow 10,000: As World Stocks Sink, Dow Jones Drops To Lowest Since 2004

Huffington Post | Dave Burdick | Posted 05.25.2011 | Business

For the first time since October of 2004, the Dow Jones Industrial Average has dropped below the 10,000-point mark. It has dropped as many as 700 poin...

Americans Have Lost Confidence In Our Social And Legal Institutions

Sheila Suess Kennedy | Posted 05.25.2011 | Home
Sheila Suess Kennedy

The sobering question that confronts us is whether any president, any administration, can stem the bleeding and put this nation back on the long and difficult path to competent governance, fiscal sanity and the rule of law.

World Markets Plunge On Crisis Fears

AP | EMILY FLYNN VENCAT | Posted 05.25.2011 | Business

LONDON — Asian and European stock markets plunged Monday as government bank bailouts in the U.S. and Europe failed to alleviate fears that the g...

Richard Fuld's Congressional Hearing To Explore Causes And Effects Of Collapse (VIDEO)

New York Times, Reuters, AP | Posted 05.25.2011 | Business

**UPDATE** FULD WONDERS WHY LEHMAN WASN'T BAILED OUT When Lehman CEO Richard Fuld was asked whether there was a substantial difference, from a busin...

Credit Crisis: What Should We Do?

Alan Schram | Posted 05.25.2011 | Business
Alan Schram

The credit crisis that began in 2007 and triggered the current turmoil is unique in its ferocity, especially because so many large companies are experiencing unprecedented credit and liquidity problems.

Wachovia, Citigroup, Wells Fargo Drama Worries Fed

Dave Burdick | Posted 05.25.2011 | Business

Last week, Citigroup and the FDIC seemed to be close to a deal to acquire the troubled Wachovia Corp. Then, on Friday, Wells Fargo swooped in and made...

TERMINOLOGY OF THE BAILOUT CRISIS

Jim Randel | Posted 05.25.2011 | Business
Jim Randel

It seems that every significant event in history leads to a new vocabulary - new words or, old words and phrases used in new ways. The last year has ...

A one-stop shop for understanding the money crisis

Matt Thompson | Posted 05.25.2011 | Media
Matt Thompson

The most common refrain in stories about the current financial crisis is "We don't know." How long is this recession going to last? We don't know. How...

Illinois Small Business Loans Plunge

Chicago Public Radio | Adriene Hill | Posted 05.25.2011 | Chicago

For the first time in five years, the number of Small Business Administration loans approved in Illinois has dropped. Basic loans to small businesses...

At the Intersection of Wall Street and Main Street

Brett Ashley McKenzie | Posted 05.25.2011 | Business
Brett Ashley McKenzie

Few people can afford to treat themselves to an occasional red velvet cupcake or a ham and cheese croissant when a gallon of milk can as much as $4.

Wall Street Credit Crash Threatens To Tank U.S. Auto Industry

Diane Tucker | Posted 05.25.2011 | Home
Diane Tucker

"Every job lost on Wall Street impacts two-to-three jobs on the outside. By comparison, every job lost at an auto plant impacts nearly 10 jobs on the outside... We don't want to know what happens if the domestic auto industry gets away from us."

The Credit Squeeze Scare

Dean Baker | Posted 05.25.2011 | Business
Dean Baker

While the story of the big Wall Street banks teetering may be unique to the current downturn, the stories we hear of the Main Street credit squeeze could be cut and pasted from the 1990-1991 recession.

Republican House Bailout Plan Is A Hidden Tax

Stephen Herrington | Posted 05.25.2011 | Home
Stephen Herrington

The Republican House plan would be a government bailout with the prospect that bank contributions would cover the costs over time. But those contributions will not come out of bank profits but will be passed on to consumers, further adding to the costs of credit.

In the Hands of Adolescents

Janet Ritz | Posted 05.25.2011 | Politics
Janet Ritz

I don't presume to know the best course for our economy but I do know that after eight years of being in the hands of adolescents, I'm exhausted.

Credit Crunch Hurting Local Auto Dealers

Crain's Chicago Business | Lorene Yue | Posted 05.25.2011 | Chicago

Chicago-area auto dealers, already hurting from consumers' spending slowdown, are now also dealing with a credit crunch that's hitting the few buyers ...