When the U.S. subprime mortgage industry sputtered out, it sent world markets into a tailspin. But that's nothing compared to what a crash in China's financial market would do to the global economy, Chris Farrell tells us.
Wall Street investors are still anxious to hear which direction the Fed might turn next in its attempts to calm the financial markets, but Bernanke's doing everything he can to keep the "real economy" purring. Bob Moon reports.
Fed Chairman Ben Bernanke, Senate Banking Committee Chairman Christopher Dodd, and Treasury Secretary Henry Paulson came together today to reassure everyone that they're on top of any changes to the subprime-riddled economy. Bob Moon reports.
Now that the Federal Reserve has stepped in to calm credit-crunch fears, we figured it was time to assess where the markets and the economy might be headed. Kai Ryssdal talked with Jeffrey Saut, chief investment strategist at Raymond James.
The stock market took another dive this week as fears of an imploding credit market continued to spread. At issue are expectations that the current credit crunch might get worse. Host Tess Vigeland goes back to the beginning of it all with economist Mark Zandi.
The Fed today cut the discount rate -- what banks pay to borrow from the Fed -- by half a percentage point. Banks use it only when they're in a bind. Like the one they've been in the past couple of weeks. Jill Barshay reports.
Mortgage lenders are having trouble getting their hands on lots of cash right now, which has put a crimp in the business of making loans. So at least one lawmaker wants to raise the portfolio cap for Fannie Mae and Freddie Mac. Jill Barshay explains.
The Federal Reserve has given the credit markets a big dose of a medicine. In a surprise move, it cut the discount lending rate by half a point. It's meant to relax the credit squeeze and that's giving the markets a healthy boost.