Paddy Hirsch is a Senior Editor at Marketplace. He is the author of the book Man vs Markets, Economics Explained, Pure and Simple, and he is the creator and host of Marketplace Whiteboard, a video explainer of financial and economic terms.

Hirsch joined Marketplace in 2007, just as the credit crunch that preceded the 2008 financial crisis began to take hold.  As editor of the New York Bureau and the entrepreneurship desk, he spearheaded Marketplace’s financial markets coverage throughout the crisis and as the economy fell into recession. He was awarded a Knight Fellowship at Stanford University in 2010, and he returned to Marketplace in July of 2011, when he was appointed Senior Producer of Marketplace Money. He published his first book, Man vs Markets, in August 2012.

Hirsch got his start in journalism with an internship at the BBC in Glasgow, Scotland. He became a field producer for CNBC in Hong Kong and later was a consultant to the Open Broadcast Network in Bosnia. He has been an editor for Direct Capital Markets, Institutional Investor Newsletters, Standard & Poor’s, and the Vietnam Economic Times. Prior to becoming a journalist, he served as an officer in the Royal Marines.

Hirsch attended Campbell College in Belfast and received a bachelor’s degree in French and International Studies from the University of Warwick. He is a Knight Fellow and was a Webby honoree in 2009.

 

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Features by Paddy Hirsch

Explaining exchanges

You've heard of the New York Stock Exchange and Nasdaq. Do people really still stand around and yell out buy and sell orders at these places? Paddy Hirsch explains what an exchange is -- by taking us to the supermarket.
Posted In: stock exchange, stock, stock market

Protecting your social security number from hackers

Social security numbers are open to hacking if not properly protected.
Posted In: Money Matters, Personal Finance, social security numbers, hacking

What's confidential about Twitter's IPO filing?

Twitter tweeted that it had "confidentially submitted" papers for a planned initial public offering. The news reached more more than 23.6 million people, so what's confidential about that?
Posted In: Twitter, IPO

Consumer credit rises, but no one's smiling

We're borrowing more, but neither as much as economists had hoped, nor for the kind of thing that will help the economy.
Posted In: consumer credit

Do your Facebook friends affect your credit score?

They say be careful what you post on social media What you do on Facebook could affect your credit score.
Posted In: Facebook, social media, credit agencies, credit score

With choice comes risk: How to pick the electricity plan that's right for you

Power companies are starting to steal from the mobile phone playbook, offering free nights and weekends or pre-paid plans. This can save you money, or it can blow you away with higher bills.
Posted In: electricity, power, utilities

Why the Fed's actions are hurting markets

We're reading a number of stories about the effect that an expected slowdown in the Federal Reserve's bond-buying program is having on emerging markets. They're all missing a central explainer of why these markets are hurting.

Here's my take:

The Fed's program pumped lots of cheap cash into the system - call it a bond-buying, stimulus or liquidity program. A lot of people used that cheap cash to invest in emerging markets.

And as investors anticipate the Fed putting the brakes on the program, two things are happening simultaneously.

  1. Investors figure there'll be less cheap money coming out of the Fed, which means there'll less money going in to so-called emerging markets. That will cause a slowdown in economies like Indonesia and India. And no-one wants to have their money in an economy that's slowing down. So investors are pulling their money out.
  2. Investors are nervous the entire financial system will slow down with less cheap money, so they’re piling back into safe stuff –- which means they're moving even more cash out of emerging markets and into safer, U.S. investments.

Together these actions translate to one big flight of cash away from emerging markets. And while no-one is in big trouble yet, we're already seeing the effects of this so-called flight of capital.

An analogy: Imagine you're living a high-flying, American Express Gold Card executive lifestyle. You use your big paycheck to buy a big car and a big mortgage and send your kids to Ivy League schools, and you amass big credit card bills, that you are having no problem paying off.

And then one day your boss comes into your office and tells you revenues are down at the firm and everyone's income is going to be cut in half -- including yours. Suddenly you're going to have problems paying your mortgage, your credit card bills and your kids' tuition. You may even have trouble fueling your car and feeding your family.

That's how those emerging nations feel.

Public school families hit with fees as kids go back to school

Public school is supposed to be free, but around the country families are being asked to foot the bill for laptops and tablets for their students.
Posted In: public school, family budget

The down-low on Fannie and Freddie

As we reported today about President Obama's speech in Phoenix on the housing market, and specifically on Fannie Mae and Freddie Mac, we realized there's a lot of conflicting information out there about how much of the mortgage market Fannie and Freddie are actually responsible for.

Some say just 50 percent; others say as much as 90 percent.

The New York Times quoted an Obama Administration official saying , "the government guarantees more than 80 percent of all mortgages through Fannie Mae and Freddie Mac and F.H.A."

So what's going on here?

I got a clear answer from Edward J. Pinto of the American Enterprise Institute. Pinto used to work as the chief credit officer  at Fannie Mae, and he keeps a close eye on his former employer. He says people often conflate Fannie and Freddie with other government agencies, such as the Federal Housing Administration, the Department of Veterans Affairs and the Department of Agriculture.

Pinto says if you look at the agencies separately, of all the mortgages outstanding in the market right now, Fannie and Freddie are responsible for about 55 percent, other government agencies are responsible for about 15 percent, and the private label market is responsible for the remainder. 

Pretty simple, math, it seems. (Thanks, Ed!)

SAC insider trading charges, explained

The criminal indictment of SAC Capital is all about the misuse of material of non-public information ... otherwise known as insider trading.

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