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.
European banks tied into subprime debt are now rushing to buy U.S. dollars to pay back those loans, which is raising the value of the flailing currency. But Ashley Milne-Tyte reports it may just be a short-term fix.
Doing the numbers is starting to get downright gloomy. Markets in Asia and Europe are dropping by 2 and 3 percent after yesterday's Wall Street plunge on continuing subprime concerns. This time mortgage lender Countrywide was the biggest troublemaker.