The nation's biggest banks are adjusting their strategies to deal with the supprime loan crisis, and the credit crunch could get worse for all of us. Penn State economics professor John Mason offers some perspective.
Investors are flocking to the safety of bonds as subprime lending fallout continues to drag Wall Street on a wild ride. The returns are nothing special, but some folks just want to know their nest egg is protected. Stacey Vanek-Smith reports.
Two years after Hurricane Katrina, much of the Gulf Coast is still in ruins. Half of the $100 billion in aid is tied up in bureaucracy and funds are slow in getting to the hardest-hit areas. Sam Eaton reports.
Researchers predict that 2006 data will show a dwindling middle class when the census bureau releases its annual report on income, poverty and health insurance today. And that's bad news for folks above the $75,000 line too. Jeremy Hobson explains.
Survey says: Economists now cite massive defaults on subprime mortgages and heavy debts as the top threat to the U.S. economy. As recently as March, the possibility of a terrorist attack was still the greatest worry. Janet Babin has more.
Today's reports say new-home sales are up 2.8% and U.S. factory orders nearly 6%. But, wait. Those are the numbers from July — before the subprime debacle and the credit squeeze. Jill Barshay has more.
Two months ago, in an attempt to stem breakneck inflation, Zimbabwe's government ordered businesses to freeze prices. Since then, it's been crippled by a shortage of basic goods, and inflation shows no sign of slowing, Gretchen Wilson reports.
Just when it looks like the Fed might be ready to lower interest rates in the U.S., the European Central Bank has indicated it may raise rates over inflation worries. And at least one EU member state says the ECB's got it wrong, Stephen Beard reports.
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.
