Week of April 14th, 2008

Question: We are currently faced with a dilemma. My wife and I bought a home years back with the eventual assumption that we would outgrow it and…

As the financial news remains focused on mortgages, we're hearing more about Fannie Mae and Freddie Mac. Tess asks Susan Wachter for a little help with the who's who.

Life is hard enough without having to decipher everything. This week, friendly company trying to save you from foreclosure or "rescue scam?"

Cash incentives and financial education have often been the purview of non-profits, but as Alisa Roth reports, New York City is throwing it's hat in the ring.

It's not the most lucrative business in town, but a life in the theater has it's perks. On this week's A Day in the Work Life, we meet Off-Broadway theater owner Peter Martin.

Promised a pile of cash for your home equity? Carolyn Bigda tells Tess about how some banks are cutting back and what you can do to protect yourself.

With loans harder to come by, more Americans have resorted to raiding their 401(k)s, but as Josephine Bennett reports, borrowing early can have big consequences.

Half of workers have no way to save for retirement. Economics editor Chris Farrell sets the story straight on a California proposal to give every worker a retirement savings plan.

Full-time students can use their parents' insurance, but as graduation nears, Tess asks Stephen Finan about health care options after college.

With food prices on the rise, Sarah Gardner asks why it costs twice as much to make an omelette. She discovers cracking the price of eggs is quite the riddle.

In Israel there are traditional restrictions on the availability of bread during Passover. But this year, both the pious and the secular have reason to celebrate. Daniel Estrin reports.

The Oakland Athletics once rode an innovative strategy called sabermetrics to success in Major League Baseball. The team is now struggling, but commentator Dan Drezner says it's not because the strategy has failed. Rather, most of the other teams are using it too.

Zimbabwean President Robert Mugabe is being blamed by his opposition and economists for the collapse of what was once southern Africa's breadbasket. And the nation's current political impasse is only prolonging its pain. Gretchen Wilson reports.

Mortgage applications are up and a new poll says a majority of Americans think now is a good time to buy a home. Still, many who take the plunge are finding themselves up against a new roadblock. Amy Scott reports.

Wal-Mart says it's going to stop selling baby bottles made with a plastic called BPA, and the Canadian government plans to ban their sale. Meanwhile, glass bottle sales are taking off. Sarah Gardner reports.

Mexican immigrants are sending smaller portions of their paychecks home because of tumbling wages and fewer jobs in America. Many are returning home, but they're finding the economic picture there isn't much better. Dan Grech reports.

Citibank, the nation's biggest bank, says it lost $14 billion in the first quarter. But its assurance that it was working to climb out of the hole was good enough for investors, who bumped up its stock 4%. Bob Moon reports.

Zvi Bodie,finance professor at Boston University, pointed out today that that with I-bonds the fixed 30-year rate of interest is still 1.2% per…

Argentina announced it will get much-needed diesel fuel from Venezuela. The arrangement could steady the price of diesel and ease tensions with farmers who need fuel for harvesting. Dan Grech reports.

Closing time for New York City bars is 4 a.m. Some New Yorkers upset over noisy patrons want bars to close at 2 a.m. so they can get some sleep. Ashley Milne-Tyte reports

A $40 billion arms deal between Britain and Saudi Arabia would supply the Saudis with fighter jets. But the deal has been jeopardized by corruption inquiries, and the U.S. could block it. From London, Stephen Beard reports.

Jumbo home loans — anything larger than $417,000 — have become more expensive than regular mortgages. They're 7% instead of 5.9%. Now Freddie Mac has a deal with four lenders to lower the rate. Jill Barshay reports.

The number of Americans kidnapped while in Mexico doubled in 2007 from the previous year. The rise in crime has not only reduced tourism, it is affecting the future of real estate projects, such as Donald Trump's Tijuana towers. Jill Barshay reports.

The EPA has denied 17 state plans to curb CO2 emissions, saying separate plans would create confusion. Governors are meeting at Yale today to press the federal government to act on climate change.

Marketplace Money for April 19-20, 2008

Marketplace Morning Report for April 18, 2008

A decade after Apartheid, whites still control 90% of businesses in South Africa. To turn that around, the government has launched a program to force whites to share the wealth — requiring a new type of racial auditing in the workplace. Terry FitzPatrick reports.

Presumptive Republican presidential nominee Sen. John McCain wants to suspend the federal gas tax for the summer travel season. Truckers say they like the idea. But commentator and tax expert Len Burman says McCain's proposal won't get us where he wants to go.

There are lots of factors behind the soaring prices of food around the world. A big one is the rapidly growing cost of fertilizer. Dan Grech reports.

Bank of America and a unit of Citigroup have joined a growing list of lenders cutting back on student loan programs. At the same time, the House passed an emergency bill that would enable lenders to have more cash to keep making loans. John Dimsdale reports.

Concern is growing that banks may have been hiding their distress by manipulating a key financial benchmark called the LIBOR. It's used as the basis for millions of financial transactions around the world, including mortgages and corporate loans. Stephen Beard reports.

Samsung CEO Lee Kun-Hee is a very powerful man in South Korea. So powerful that, although he has been indicted on tax evasion charges, he is not likely to face jail, if convicted. Jeremy Hobson reports.

The FAA is working on improving the way it deals with airline safety. One thing it's tackling is how to ensure airlines are complying with safety directives, while trying to avoid cancellation chaos. Ashley Milne-Tyte reports.

Merrill Lynch reported $6 billion new write-offs for the first quarter, and the brokerage says it will have to cut 4,000 jobs. Analyst Tanya Azarch talks about the bigger picture for investment and commercial banks.

Homeownership has been long a vibrant part of achieving the American Dream. But these days owning a home is more like starring in a horror flick,…

The House was expected to pass legislation today aimed at stabilizing and expanding the federally guaranteed student loan market. Steve Henn reports.

Question: I am a single, 40 year old woman, no dependents. I got a New England Life Insurance policy about 13 years ago – not for a payout if I die…

Congress has put off a farm bill for two weeks, after it couldn't agree on how to pay its $280 billion price tag. Beyond the cost, there's the issue of subsidies leading to more political liability as food prices keep rising. Sam Eaton reports.

Oil prices have topped another record. U.S. crude was fetching well over $115 a barrel in London this morning. As Stephen Beard reports, speculation and uncertainty about supply lines have hedge funds placing bets.

President Bush wants to fast-track a free trade agreement with Colombia, but Democrats on Capitol Hill are objecting. Marketplace's economics correspondent Chris Farrell weighs in on the debate.

About 42 million pieces of luggage that passengers checked with airlines last year were lost — affecting one in 2,000 flyers, according to a new study. Alisa Roth reports.

Zimbabwe election results remain under wraps, but today a new twist in the troubled nation's saga: South African officials confirm a Chinese ship carrying arms has been cleared through South African customs. Gretchen Wilson reports.

Marketplace Morning Report for April 17, 2008

China reported today its economy grew 10.6% in the 1st quarter, which may seem red hot, but it was 11.9% last year. So is China catching America's subprime cold? Or is it immune? The answer has big implications for the global economy. Scott Tong reports.

College education costs continue to soar at the same time studies show college graduates getting paid less. Commentator David Frum says Americans should re-examine the real value of a college degree in today's economy.

President Bush is calling for government limits to stop the growth of carbon dioxide emissions by 2025. While he has resisted curbs on the burning of fossil fuels, Bush is now jumping on board a trend that has lots of momentum. John Dimsdale reports.

The dollar has hit another low against the euro. For Yanks living abroad the dollar's freefall demands a whole new mindset, as Eleanor Beardsley reports from Paris.

A new survey of hedge-fund managers shows the top five made more than $1 billion a year each — even as the housing and credit markets fell down the rabbit hole. Jill Barshay reports.

After JPMorgan and Wells Fargo announced big drops in 1st-quarter profits today their shares promptly shot up and the Dow jumped for joy. Why? The numbers actually met or exceeded expectations. Bob Moon reports.

Question: I was recently hired for a job in the public sector, working for the state of New York. My previous job was in the private sector. My 401…

A new poll finds that many Americans think it is a good time to buy a house, especially with the interest rates still pretty good. But sellers aren't selling. What's up? Marketplace's Jeremy Hobson reports.

Sens. Hillary Clinton and Barack Obama join in an old tradition tonight when they debate in Philadelphia. They're also trying to avoid another local custom: paying party operatives to get out the vote. Joel Rose reports.

President Bush announces his non-binding goal to cut greenhouse emissions today, while Congress debates its climate legislation. Does either go far enough? Sam Eaton, from the Marketplace Sustainability Desk, reports.

British Prime Minister Gordon Brown is in the U.S. today to talk with Wall Street bankers about the global credit crunch and possibly ask them to reveal their credit losses asap. Stephen Beard in London reports.

Gas prices, airline dramas, airline ticket prices and economic downturns are likely to make vacation planners to think twice about going away this summer. Stacey Vanek Smith reports the travel industry is offering deals.

The unemployment rate is rising and today, the House will consider extending unemployment benefits. Democrats want to give those out of work another 13 weeks of checks. Nancy Marshall Genzer reports

Former Fed chair Paul Volcker says the current Fed leadership overstepped its mandate in bailing out Bear Stearns. Commentator Robert Reich says the Fed's unfettered powers are behind a lot of today's economic troubles.

Marketplace Morning Report for April 16, 2008

Question: My husband, Gregg, runs a non-profit literary arts organization called the Citylit project (create link to www.citylitproject.org). He…

Question: My wife and both turn 50 this year. Our son is graduating college and our daughter enters college this fall. We are downsizing into a…

The merger of Northwest and Delta creates the world's largest airline, and it could prompt more consolidation in commercial aviation. But is bigger necessarily better? Jeremy Hobson reports.

Hollywood sometimes uses video-game ideas for movies. But now gamers are making movies out of the games themselves. It's fun and games only until the lawyers get involved. David Chong reports.

Eric Lichtblau, author of "Bush's Law: The Remaking of American Justice," talks with host Kai Ryssdal about the Bush administration's warrantless wiretapping program and other covert tactics.

Kai Ryssdal reviews listeners' comments on Sunday alcohol sales, national service programs, and our April Fool's joke that just keeps going.

A growing chunk of college costs is the price of textbooks, on which the typical undergraduate spends $900 a year. So a group of college professors is calling for low-priced and free texts online. Congress is getting involved, too. Jill Barshay reports.

Inflation on wholesale goods jumped 1.1.% in March, more than double the forecast. So-called "core" prices, excluding energy and food, rose 0.2%. That core price, though, doesn't mean much to businesses struggling to keep from passing soaring costs onto consumers. Sarah Gardner reports.

Presidential candidates are making their cases for change to the federal tax system. But commentator and economist James Poterba says trying to change the tax code will be tricky, no matter who's in the White House.

Study by the Institute for American Values says people from broken homes make more use of government services, like Medicaid. Others say the money is well spent. John Dimsdale reports from Washington, D.C.

Delta and Northwest airlines have agreed to join forces. If approved by unions, regulators and Congress, the merger would create the world's biggest airline. Jeremy Hobson looks into what this means for fares.

British Prime Minister Gordon Brown meets bankers today amid growing concern about credit. Brown is expected to urge bankers to lower interest rates and keep the economy from stalling. From London, Stephen Beard reports.

Delta and Northwest airlines have agreed to join forces. Regulators have to OK the merger, of course, but it would create the world's biggest airline. Kevin Done, aerospace correspondent for the Financial Times in London, tells us what this all means.

Commentator Dan Ariely says that for many of us, the temptation to do a little creative accounting with our taxes is too tough to pass up. He did an experiment with some MIT students and got some interesting results.

A Senate hearing today follows reports that prescription drugs, such as heart medications and antidepressants, were found in the drinking water of two dozen cities. Is there a health risk? Sam Eaton reports.

Since Silvio Berlusconi got into Italian politics, he's been loved and hated. Loved and hated. Loved and hated. Now Berlusconi is loved again — elected Italy's premier for a third time. Megan Williams reports from Rome.

Over the next several weeks, the government is expected to mail out $100 billion in stimulus rebates. Retail stores and electronics makers are already plotting to take that money away. Jill Barshay reports.

Pope Benedict XVI arrives in Washington today, but his fame precedes him. Internet retailers are already hawking papal souvenirs. Some are more tasteful than others. Nancy Marshall Genzer reports.

Marketplace Morning Report for April 15, 2008

With Wachovia posting an unexpected first-quarter loss of $350 million, investors are left to wait and wonder what's coming up around the next curve as more earnings reports from investment banks are due this week. Bob Moon reports.

Rising food prices are making most everyday shoppers a bit more cost-conscious. So imagine what it's like for people who are trying to buy healthy foods for schools' hot-lunch programs. Sarah Gardner reports.

Looking for new revenue sources, states are considering levying taxes on Internet retail. California is thinking about taxing music downloads, and New York says it's going to start hitting up companies like Amazon. Alisa Roth reports.

The tax code hasn't gotten much attention in the presidential debate so far. But commentator and business historian John Steele Gordon says proposals to raise capital gains taxes might not be so smart.

Those who think American stock markets are shaky should check out the Shanghai Composite index. It's off almost 35% so far this year. Marketplace's Scott Tong in Shanghai discusses the ways of Chinese investors with Kai Ryssdal.

Faltering video chain Blockbuster is making a $1.3 billion offer for floundering electronics giant Circuit City. And that's prompting a lot of questions — like, where's it going to get that kind of money? Lisa Napoli reports.

The International Monetary Fund, the World Bank and the G-7 wrapped up three long days of top-level meetings this past weekend. But they couldn't devise a coordinated plan to unstick the troubled financial markets. Nancy Marshall Genzer reports.

Anyone who's ever tried to organize a group purchase, event or boycott knows it can be like herding cats. A Chicago company is taking on that challenge with a Web-based tool for organizing the masses. Gabriel Spitzer reports.

Blockbuster has made public an offer to buy Circuit City, an offer that was made privately in February but was not embraced by Circuit City brass. Will both companies benefit from the buyout? Jeremy Hobson reports.

Expectations are not high for the earnings reports that big Wall Street investment firms are turning in this week. In fact, Marketplace's Jill Barshay learns that financial sector earnings, "are going to be miserable."

In our series, My Morning Commute, today, Gary Lindsey explains "slugging," a way of hitching a ride into work. Lindsey says he drives to the park-and-ride and hops in with a driver who has a similar commute.