Week of December 15th, 2008

Contributed by Catherine Adams, Loveland, Ohio…. …

This week, federal regulators rolled out the biggest overhaul the credit card industry has seen in decades. What does this mean for the average consumer? Ashley Milne-Tyte reports what will be changing — and when.

Santa's job gets a lot easier when he enlists the help of a few tireless folks in brown polyester uniforms. UPS driver Fred Gourley says he has between 100 and 110 stops on an average work day.

At the height of your economic frustration, you may have entertained the thought of avoiding debt altogether by not buying any holiday gifts. Some families are making that a reality in very positive ways. Jenee Darden reports.

What do President-elect Obama, Italy's Silvio Berlusconi and France's Carla Bruni have in common? Marketplace's Megan Williams traveled to an outdoor market in Naples, Italy, to get the answer.

The frail global economy has been hitting China hard. Marketplace's Shanghai correspondent Scott Tong discusses with Tess Vigeland how tougher times are raising questions about social unrest in an authoritarian country.

Usually at the holidays the news slows down. But not this week. Katie Benner of Fortune Magazine, The New York Times's David Leonhardt and Tess Vigeland discuss the events that grabbed the headlines.

So-called "clamshell" packaging has helped deter store theft for years. But the plastic casing is notoriously hard to open. Now, relief is in sight. Sarah Gardner reports.

This is supposed to be the biggest shopping weekend of the year. But many retailers have started advertising big after-Christmas sales. Jeremy Hobson reports.

The $17.4 billion that President Bush made available to General Motors and Chrysler today is being seen by auto industry analysts as only a temporary lifeline. Big decisions await the next administration. Nancy Marshall Genzer reports.

For years the Recording Industry Association of America has been suing netizens, accusing them of illegally sharing music files. But that era now seems to have met the fate of 8-tracks and cassettes. Rico Gagliano reports.

With careers in investment banking becoming scarce, where should a fresh MBA graduate turn? Sally Herships looked into how the next graduating class is handling an increasingly squeezed job market.

Question: What is your suggestion for finding up to date information on all I would need to know about mortgages for the first time buyer. I would…

Troubled Swiss investment bank Credit Suisse is giving its bankers an interesting Christmas bonus. Bankers will receive bonuses linked to risky assets. Stephen Beard reports.

As the year comes to an end, many are making economic predictions for 2009. The Danish bank Saxo recently came out with their own claims for what will happen next year. Scott Jagow speaks with Saxo's chief economist David Karsbol about the Danish bank's predictions for 2009.

Angie's List is providing new tools and incentives for small and large companies across the country to slap on some green paint. They provide…

President Bush announced that the federal government will offer General Motors and Chrysler $17.4 billion in loans to help the struggling auto industry. The loans will come from the Troubled Asset Relief Program. Scott Jagow speaks with Alisa Roth about the conditions of the bailout.

Peruvians have enjoyed eating roasted, fried and stewed guinea pigs for centuries. Now, they are trying to market the guinea pig as a low-cost alternative for Christmas dinner. Dan Grech reports.

Questions about the impact ethanol has on the environment are keeping the EPA from making a ruling about how much biofuel the U.S. should produce. Sarah Gardner reports.

The must-have toy of Christmas 2006 was the Elmo doll. This year? Not so much. Rico Gagliano reports on this holiday season's hit toy, or lack thereof.

You may have heard the term "Ponzi scheme" recently. Bernard Madoff's massive investment scam is an example of one. Mitchell Hartman reports on who Ponzi is and his scheming ways.

Marketplace Morning Report for Friday, December 19, 2008

Marketplace Money for December 20-21, 2008

Question: In 2006 we bought a house in a pretty strong real estate market with a 30 yr fixed rate that wasn't stellar, (6.75%). We have no problem…

Wages and other labor costs have been a main source of contention in talks about the auto bailout. But the debate is about much more than hourly pay. Commentator Harley Shaiken says the future of the economy is at stake.

Federal regulators have approved new rules to protect consumers from surprise interest rate hikes and fees on their credit cards. But banks say the rules will hurt card holders, whether they have good credit or bad. Nancy Marshall Genzer reports.

It's bonus season on Wall Street. But this year investment firms are reducing bonuses for most employees. Why is anyone on Wall Street getting a bonus at all? Jeremy Hobson reports.

As President-elect Obama's nominee to lead the SEC, Mary Schapiro will be confronted with a slew of problems. The agency that's supposed to police Wall Street increasingly finds itself derided as Keystone Cops. Steve Henn reports.

Tata, the Indian company that owns Jaguar Land Rover, is in talks with the British government about a possible bailout. But even though Britain is home to three Jaguar plants, is it willing to aid a foreign-owned company? Stephen Beard reports.

President-elect Obama is nominating Mary Schapiro to head the Securities and Exchange Commission. Alisa Roth has more about Schapiro, who could be the first woman to hold the SEC chair position permanently.

Today, the Federal Reserve is expected to approve credit card reforms that will end universal penalty hikes if you're late on one card. But Janet Babin reports we may have to wait awhile until we see them.

Banks around the world have lost a total of $1 trillion in assets, according to a new study. The losses were almost balanced out by $920 billion in new investment, although a third of that came from governments. Nancy Marshall Genzer reports.

A general consensus among analysts seems to favor a grinding, slow recession. But economics correspondent Chris Farrell believes we'll get out of this slump rather quickly next year. He tells Scott Jagow why.

Bethlehem has seen a growth in tourism recently with the West Bank in relative calm. But as Sam Eaton reports, Palestinian businesses are hoping that more tourists will venture beyond Bethlehem to their neck of the woods.

Marketplace Morning Report for Thursday, December 18, 2008

A small businessman who runs a car repair shop in Minneapolis is doing rather well these days, as customers try to extend the lives of their beaters. But he has a big obstacle to success — he's an undocumented Mexican immigrant. Stephen Smith reports.

There's been a lot of talk about how much it will cost to keep the Big Three automakers in business. But Commentator Robert Reich says there's more on the line than just money.

A majority of states face massive budget deficits. Unlike the federal government, states have to balance their budgets. But the cuts needed to make that happen may only make things worse. Sam Eaton reports.

When futures traders buy grain, oil or other commodities, they're paying what they think those products will be worth in several weeks or months. How does the process work? Rico Gagliano explains in The Marketplace Decoder.

Bernard Madoff's alleged Ponzi scheme is just the latest high profile mistake made by the SEC. Chairman Christopher Cox has launched an internal probe, and there are many more investigations to come. Steve Henn reports.

The dollar has dropped dramatically against key foreign currencies. It now stands at a 13-year low against the yen, and it's back to October lows against the euro. But currency experts expect the U.S. economy to bounce back before others, Jeremy Hobson reports.

Alarmed by the plummeting price of oil, OPEC ministers today announced a record cut in future output — 2.2-million barrels per day beginning Jan. 1. Even so, prices on world markets hit four-year lows today. John Dimsdale explains why.

Question: Is now a good time to purchase my first home in Santa Cruz, California? Buying in this area has never been an option until now. I have…

The National Association of Homebuilders wants to see Congress implement a program to help stimulate buyers and give them a reason to rejoin the market. Rico Gagliano reports the plan involves two parts: tax credits and low fixed rates.

Economic woes mean Christmas presents are a lower priority for some families. How should they break it to the kids that Santa may have to do some scrimping? Ashley Milne-Tyte talked to one family about how they're dealing.

Today a major nuclear energy deal could be cut involving Constellation Energy and France's EDF. Jeremy Hobson has the details.

In London, banks are reacting to the Fed cut with lower interbank lending rates, but they're still reluctant to lend. Stephen Beard reports markets will look to Barack Obama's fiscal packages for help out of the slump

Like the Big Three, Honda is also having a hard time selling cars. The company issued profit warnings for the third time this year. Steve Chiotakis talks to Marketplace's Alisa Roth about how the automaker is saving cash.

The Federal Reserve's target interest rate is looming somewhere between zero and a quarter of a percent, and world central banks are responding with their own cuts. Scott Jagow talks to Stephen Beard in London.

OPEC is meeting in Algeria today, and OPEC and non-OPEC countries alike said they'd try to cut production to try to boost oil prices. But John Dimsdale reports Americans might not notice much difference.

It's natural to want to penny-pinch when in a recession, but if you're not at risk of financial struggle, you may not need to cut back. Commentator Will Wilkinson says if you can, you should keep spending.

Marketplace Morning Report for Wednesday, December 17, 2008

How scared is the Fed that the economy has fallen off a cliff? It seems very, very scared by lowering its benchmark interest rate to between 0% and…

Question: I have Roth IRA accounts with Vanguard and T. Rowe Price. I get transaction confirmations and quarterly statements from each. From what I…

Giving away carbon offsets for the holidays isn't exactly glamorous, but it does help the environment. Joellen Easton reports on how the market for offsetting greenhouse gas emissions is doing this holiday season.

Bernard Madoff built the foundation for his Ponzi scheme by word of mouth at charity balls and country clubs from New York to Florida. And he's not the only one. Amy Scott reports.

Slovakia has rebuilt itself since the end of communism, succeeding where many thought it would fail. In three weeks it will become a member of the eurozone. Stephen Beard reports.

A new survey says companies are scaling back on pay raises. Employee benefits may also take a hit in the near future as out-of-pocket expenses like co-pays are expected to rise. Mitchell Hartman reports.

In a bold move to revive the economy, the Federal Reserve dropped the federal funds rate to 0.25%. Tess Vigeland talks with Bob Moon about the impact of the rate cut.

The classic board game Scrabble celebrates its 60-year anniversary today, and to date, more than 100 million sets have been sold in 29 languages. Jennifer Collins shares some other fun facts about the game.

Lawmakers get an automatic pay raise every January, and this year is no different — but many question whether, for obvious reasons, it should be. Danielle Karson reports it's up to constituents to voice concerns.

In recent days, foreign investors have been moving away from the dollar, assuming the Fed will cut interest rates again. Stephen Beard explains why they no longer consider the U.S. an investment safety net.

The Federal Deposit Insurance Corporation will likely tackle bank assessment fees when it meets today. It may have to double those fees in order to keep up the amount it needs to maintain in reserves by law. Janet Babin reports.

For young entrepreneurs who have never gone through a recession, the current economy can be scary. But some are taking on the crisis as a valuable learning experience, and can find advantages. Mitchell Hartman reports.

Up until now, Goldman Sachs has refrained from showing quarterly losses. But today, the bank lost $5 a share. Scott Jagow talks to Marketplace's Alisa Roth about how it plans to weather the drop.

Hungary has been feeling bitter about free market capitalism based on the way the West is handling the economic downturn. And other Eastern European countries share the sentiment. Stephen Beard reports.

When the Fed cuts interest rates, it's targeting the rate at which banks lend to each other. But in reality, banks lend to each other at rates much lower. Sarah Gardner explains what a prime rate is and why it affects us.

Marketplace Morning Report for Tuesday, December 16, 2008

From Stephanie Allard of Loveland, Colo. . . ….

Question: I'm 54 years old with a 401k plan that is pretty much all my savings. I'm married and together we make approx. $80.000/year. We just…

Hungarians have experienced a rise in the quality of life since communism ended. But to support their new lifestyles, many Hungarians depended on foreign loans. Now, Hungarians with loans in foreign currency may be hungry for change. Stephen Beard reports.

There may be a large contingent of greener cars on the road, but gas guzzlers and other fuel-consuming vehicles are still zooming down the freeways. Commentator Virginia McConnell says that higher gas prices and taxes could be good for the auto industry and us.

Fannie Mae is developing a policy to allow renters who live in foreclosed properties to stay in their homes and avoid eviction. The new policy comes on the heels of the mortgage finance company's current holiday eviction moratorium. Sam Eaton reports.

The Federal Reserve Board will likely announce Tuesday it is cutting interest rates. But what happens next? As John Dimsdale reports, it may take more than just low rates to get banks back in the game.

The fallout from Bernard Madoff's massive investment scam is being felt worldwide and has some people calling for more regulation on hedge funds. Jeremy Hobson reports.

The Web site Subsidyscope launches today and makes available a full range of public subsidies for open tracking — including corporate tax breaks and the $700 billion bailout. Nancy Marshall Genzer reports.

European banks are reacting to the Bernard Madoff scam with potential losses in the billions. Britain's Royal Bank of Scotland and France's BNP Paribas are just two examples. Stephen Beard reports.

When you want to get people borrowing and spending again and you've exhausted all other options, there's always quantitative spending. Stephen Beard explains this last resort option in our latest Marketplace Decoder.

The White House looks poised to take action to help the auto industry, and there are a few routes it could take. Stacey Vanek-Smith talks to Marketplace's Alisa Roth, who goes over what could happen.

Fortune Magazine's Allan Sloan moderated a panel discussion on the issue of confidence in the economy. He told Scott Jagow our main concerns are confidence for foreign investors and for our leadership in Washington.

Chinese company BYD unveiled a new electric car with a plug-in battery that's supposedly two years ahead of the competition. Scott Jagow talks to Marketplace's Scott Tong, who got a first-hand look.

The Federal Reserve begins a two-day meeting today which will likely result in another rate cut. That could lead to a weaker dollar, and could also coerce investors to take safety in gold. Ashley Milne-Tyte reports.