Week of December 22nd, 2008

As a center for oil profits, Houston continues to see substantial job growth. But the numbers of the hungry increase in parallel to the city's prosperity. Kate Archer Kent reports.

The top online retailer says it's had its best holiday shopping season. How was Amazon able to buck the trend of one of the worst holiday retail periods ever? Steve Henn reports.

Marketplace's New York Bureau Chief Amy Scott takes a look back with Kai Ryssdal at Wall Street's rough year in 2008 and the changes it may bring about.

Much of the financial crisis talk has included references to economist John Maynard Keynes, who called for government intervention to boost troubled economies. But commentator Todd Buchholz says Keynes' teacher might be the one with the answers.

When it comes to the economy in 2009, there's more we can't anticipate than we can. Kai Ryssdal tries a bit of looking into the future with Michael Mandel of Business Week and political scientist Dan Drezner of Tufts University.

Among the more than 200 banks taking federal bailout money is Saigon National Bank in Orange County, Calif. It got a relatively paltry $1.2 million. But why? Rob Schmitz reports.

Retailers across the nation are cutting prices to drive sales and make up for their run of bad luck this holiday season — if they've got to get their current inventory out of their stores. Jeremy Hobson reports.

Sitting in a pile of holiday gifts you don't necessarily want? Why do we spend so much money on presents anyway? Commentator Dan Ariely explains that giving gifts is a waste of money, but crucial as a social lubricant.

The Brits have a year-end tradition of musical shows called pantomimes, or pantos for short. They feature heroes and villains. This year there's a more contemporary scoundrel — the financial miscreant. Stephen Beard reports.

Every year, Alaska residents receive a check from the dividends of oil drilling. Emily Schwing asked some of them where their oil money goes.

Let's face it: It's been a terrible year. Why not forget your financial troubles for awhile and go see a movie? This week, we go to a film archive in Montreal, Canada to find out what it takes to be a good projectionist.

The gifts are out of the boxes, and some of them will inevitably be on their way back to the mall. And retailers are preparing to see an increase in returned merchandise this year. Andrea Gardner reports.

There's a big market for indie films, but funding for the flicks is becoming increasingly difficult. Steve Chiotakis talks to Variety's Michael Speier about the process of making an indie movie and why it's struggling.

Shoe cobbler Ramazan Baydan has had plenty of business, thanks to his claim to the infamous shoe thrown by an Iraqi journalist at President Bush. Daniel Estrin reports on the success of the "Bye Bye Bush" shoe.

Web users in China will soon be able to download movies online for a small fee. In order to compete with bootlegs, films will run for about 60 cents per download. Scott Tong reports on the move to combat piracy.

Another reason sited for lack of consumer participation in this year's holiday shopping season: no new technological innovations. Jill Barshay also reports where shoppers' recipient lists dwindled.

Oil rose moderately on the United Arab Emirates' announcement of a production cut. This could indicate OPEC still has influence over the market, but some analysts still see a downward trend. Stephen Beard reports.

As retailers try to salvage dismal holiday sales, some are placing discount on top of discount in order to get products off the shelves. Rico Gagliano analyzes the big picture from a snowboard shop.

It's been a particularly dry time for top-shelf alcohol as premium beer and fine wine are selling comparatively lower to last year. But low-price, supermarket liquor purchases are up. Jean-Luc Renault reports.

As the Czech Republic takes its turn heading the E.U., many are critical of Czech President Vaclav Klaus, a leader many consider difficult. Stephen Beard reports what some people fear with Vaclav in power.

Marketplace Morning Report for Friday, December 26, 2008

Marketplace Money for December 27-28, 2008

In this installment of "A Day in the Work Life," we take a spin with Claudette "Sexy DJ" Colbert.

Going home to Mexico for the holidays has become an annual pilgrimage for many immigrants, and driving there has a particular appeal for young people raised stateside. Melissa Giraud reports.

Retailers are paying the price for the worst holiday sales in decades. In spite of door busters that busted their budgets, they're stuck with massive amounts of unsold inventory. Nancy Marshall Genzer reports.

The Federal Reserve has one last Christmas gift for the auto industry. It's allowing GMAC, General Motors's financing arm, to become a bank holding company — which makes it eligible for TARP funds. Jeremy Hobson reports.

For laid-off Wall Street workers, attending a Pink Slip Party is both an opportunity to mingle with other job seekers and a chance to maybe land a new job. Amy Scott reports.

Decorating your home for the holiday can be an arduous, stressful activity. So why not hire someone else to do it? For the right price, Dr. Christmas will do everything from roof lights to an art deco tree. Lenora Chu reports.

The video music game Rock Band continues to be a popular item among gamers and the less technically inclined. Kai Ryssdal and some Marketplace rockers checked it out with Kevin Pereira from G4 television.

The jobless rate in Chinese cities is high and could keep rising if factories don't open up to employees after Chinese New Year. Scott Tong looks into what the government is doing to help prevent social unrest.

A lot of people play video games as a way to escape the stress of everyday living. But what if a game were to help you conquer and reduce your stress head on? Sean Cole has a positive experience with the makers of Mindhabits.

If you don't have holiday plans today or don't celebrate Christmas, why not volunteer? From delivering donated gifts to working at a soup kitchen, there's plenty you can do. Steve Henn visits one volunteer center in Washington, D.C.

When food producers wanted to experiment with new flavors, they used to gravitate towards the kitchen. Today, the flavor market can be born faster in the lab. Janet Babin shows us how it's done.

Gift cards are usually a high sales performer during the holiday season, but this year their retail numbers fell. That also means a smaller post-holiday bump when the cards are used. Jean Luc Renault reports.

In a survey conducted by Michaels craft store, nearly 60 percent of 1,000 respondents said they were more likely to make their own gifts this year. Andrea Gardner looks into the homemade trend that was popular this holiday.

Marketplace Morning Report for Thursday, December 25, 2008

It's hard to celebrate during the season of giving when the economy is down in the dumps. But commentator David Frum says a little more of the holiday spirit might just be what we all want — and need — this Christmas.

While most retailers are experiencing a dismal holiday shopping season, Lego may see a record gain in U.S. sales this year. Mitchell Hartman explains why the construction toy company is building a profit.

In an odd move, the insurance company AIG used $16 billion of its taxpayer-funded loan to buy assets it insures. The move may help the company reduce its own risks. John Dimsdale reports.

Mortgage applications are up across the country, but that's mostly benefiting people who own a home and have decent credit. People are taking advantage of the historically low rates to refinance, though. As Bob Moon reports, it may be a good time for homeowners to think about refinancing.

Fallout from the Madoff scam continues as lawsuits are pouring in and piling up. Hedge fund managers who invested their clients' money with Madoff are being sued. Jeremy Hobson reports on the legal fallout surrounding the Madoff scandal.

When India's Tata Motors announced it was going to build the Nano — the cheapest car in the world — it was met with great fanfare. Now, Indians fear a wave of super-cheap cars could make the clogged streets even noisier. Rico Gagliano reports.

Applications for mortgages are at a five-year high, thanks to the recent interest rate cuts. But mortgage applications don't necessarily mean mortgage loans. Nancy Marshall Genzer explores the connection.

Millions of New York City residents rely on the subway to get around. But as it continues to lose money, the MTA may soon have to hike it's $2 ride fare up to $3. Jeremy Hobson gets commuters' reactions.

OPEC has vowed to make further cuts in production to help raise the price of oil. But Bob Moon reports the cartel can only really influence supply, and there's nothing they can do about crude's falling price.

Happy Holidays to everyone. It has been quite a year. And I really enjoy your questions and comments as we try to figure out how to manage our way…

The annual Christmas market at the Cologne cathedral in Germany draws tourists from around the world. And despite the economic downturn, many are still willing to splurge on the market's homemade goods. Emily Schwing reports.

Federal regulators helped struggling bank IndyMac cook its books back in May in order to keep it running in hard times. Steve Henn reports other banks may have engaged in a similar accounting game.

Senators Dianne Feinstein and Olympia Snowe are introducing legislation that would require bailout recipients to give quarterly reports to the Treasury Department of how they're spending the money. Nancy Marshall Genzer reports.

The price of cocoa has been steadily rising in London as other commodities fall. Supply and demand are one reason, as is the need for that mug of hot cocoa or chocolate bar. Scott Jagow talks to Stephen Beard in London.

Wall Street and Detroit are undergoing a lot of changes as a result of the economic downturn. But commentator Robert Reich says they might not want that, as some see the industries' problems as cyclical, not structural.

Katy Lederer found inspiration for the poems in her latest book from an unusual source — finance. Tess Vigeland speaks with the former hedge fund recruiter about her poetry.

Marketplace for Wednesday, December 24, 2008

Marketplace Morning Report for Wednesday, December 24, 2008

Question: We've heard so much about the problems with Freddie Mac and Fannie May, how are they difference from GNMA's. Our investment in them seems…

Listeners respond to the auto industry news that has dominated the headlines recently and also weigh in on philanthropy trends.

Sarah and Brian Epstein are in good financial shape. For that, they're grateful. But as Sally Herships reports, having money in this financial climate doesn't mean the Epsteins don't have worries of their own.

Lowering interest rates is supposed to help boost the economy. But it's also jeopardizing funding for legal aid groups that provide free services to the poor. Jeff Tyler reports on how this is affecting the growing number of people who seek legal aid help.

Christmas came early for the Big 3 when the White House announced it would bail out the troubled automakers. But how would bankruptcy compare to the government rescue? Tess Vigeland speaks with bankruptcy expert Douglas Baird.

Starbucks hasn't had it so easy lately. The coffee giant recently announced it's closing 600 stores and its stock prices are down. Now, coffee growers from Colombia are after the espresso king. Dan Grech reports.

It's been a dismal holiday season for retailers. Consumer spending is down, and the bad weather isn't helping matters. Mitchell Hartman reports on how business owners in Portland are coping with a chilly holiday shopping season.

The U.S. economy was not horrific in the third quarter, but this quarter and the next could be trouble. Nancy Marshall Genzer reports the biggest culprit in the third quarter was consumers.

Deflation is still a fear, but the downward price pressure is growing. David Rosenberg, economist at Merrill Lynch, highlights changes in the labor…

Here are some scary numbers, courtesy of David Rosenberg, economist at Merrill Lynch:…

Sometimes paying the bills means parting with something valuable. For professional athletes, that could mean pawning that hard-earned — but quite bedazzled — championship ring. Dan Grech reports what's for sale.

To cut back on holiday spending, some people aren't even splurging for "season's greetings" cards this year. But Bob Moon reports a good percentage of people will likely continue to buy cards — especially in the corporate world.

Your local police department has to do something with all that confiscated evidence and those stolen goods that go without a claim. Why not benefit? Cash Peters visited the people at PropertyRoom.com, a police auction Web site.

The credit crisis foiled about 1,300 mergers this year, worth a total of about $900 billion. Investment bankers were hurt by the failed deals, but Stephen Beard reports this could help them get a strong leg up for 2009.

With a $17 billion loan package for General Motors and Chrysler come strings attached involving wages. But the United Auto Workers union isn't entirely satisfied, which could make negotiations ahead rocky. Steve Henn reports.

Marketing executive Christine Elbert's morning routine has changed pretty significantly since she was laid off, but she's weathering the storm and enjoying the holiday with her family. Jill Barshay has her story.

Representative Barney Frank is drafting new legislation to help stem home foreclosures and reduce mortgage rates. The plan would use some bailout money and ideas from FDIC chair Sheila Bair. Nancy Marshall Genzer reports.

The FDIC takeover of failing bank IndyMac in July cost several billion dollars. But the maneuver may have been avoided if not for a cover-up that allowed the bank to continue operating while nearly out of money. Steve Henn reports.

Marketplace Morning Report for Tuesday, December 23, 2008

Marketplace for Tuesday, Dec. 23, 2008

Thirty years ago this month, Chinese leaders used the small fishing village of Shenzhen to test free-market principles. The experiment paid off as foreign investors poured in, making the city China's richest. But big challenges may be ahead for Shenzhen. Scott Tong reports.

The crash of the financial markets and the pile up of investment scams have some people asking — Where were the regulatory agencies in all of this? Commentator Amelia Tyagi says financial products need to be regulated as strictly as the drug, toy and cosmetic industries to prevent further meltdowns.

Beth and Scott Greenlee were living the middle-class life in Connecticut. But after Scott was laid off, the family was forced to change their lifestyle. Katie Ball reports on how it's the simple things that matter for the Greenlees now.

It's been more than a year since the Fed started auctioning emergency loans. Since then, the Fed has lent out trillions of dollars to big businesses, relaxing standards for the collateral it accepts along the way. As Steve Henn reports, the Fed has taken on unprecedented risks.

Employers hoping to cut costs are laying off workers across the nation. But laid-off employees who feel they've been wrongfully terminated aren't going down easily. They're fighting back — with workplace discrimination lawsuits. Mitchell Hartman reports.

Tech companies feeling the effects of the recession are forcing employees to stay home for the holidays. Janet Babin reports on the forced furloughs some companies are making their white collar workers take.

Money market funds, cash invested in short-term debt, used to be pretty reliable places for investors who wanted to get moderate returns. But with interest rates near zero, yields on funds are tumbling. Jeremy Hobson reports.

Question: Hi Chris. I have the option to enroll in a retirement plan at the company I work for. In light of the current stock market turmoil, I am…

A number of fast-food chains have recently added oatmeal to the menu. The breakfast staple is a cheaper alternative to the three-egg omelette, and a favorite of Marketplace's Mitchell Hartman, who found a good oatmeal in Portland.

The Irish government has begun a bailout of its banking system by injecting over $7 billion into the top three banks. Of course, there are strings attached. Stephen Beard reports what will be required in return.

Mortgage statistics come out this morning that include numbers of homeowners renegotiating their mortgages. But are the loan modifications effective? Dan Grech reports why these loans have been criticized for not working.

For some professional Santas, authenticity is key. That's why they maintain their character even in the offseason — from the white beard to the jolly belly. Monica Brady-Myerov asked some real Santas what motivates them.

The Greenwash Brigade brings you our favorite greenwashes of 2008. Some good, some bad, some just plain funny — and in no particular order. (V…

With the Fed interest rate nearly at zero, what else can it do to turn around the economy? Scott Jagow talks to Fortune Magazine's Allan Sloan, who explains how Ben Bernanke got the nickname "Helicopter Ben."

Property developers have mortgage debt scheduled for refinancing due by 2011 — about $530 billion. Because of the credit crunch, developers will likely have trouble coming up with the money. Nancy Marshall Genzer reports

Energy companies are annually required to report the size of their reserves by year's end to determine what is economically feasible. This process could make oil prices drop even further. Sam Eaton reports.

Marketplace Morning Report for Monday, December 22, 2008