FROM Peter Coy
Euro Nations to Get Debt Downgrade The credit rating of Europe's second largest economy, France, was downgraded today by Standard & Poor's. Word is that one more Eurozone nation will be hit with a downgrade before day is over. Peter Coy is Economics Editor for Bloomberg BusinessWeek .
Fed Says It's Done Enough to Stimulate Weak Economy The Federal Reserve said today that economic recovery is slower than it expected, but it still plans to end the $600 billion bond-buying program designed to provide stimulation. Peter Coy is economics editor at Bloomberg Businessweek .
Gold and Silver Prices Near Record Highs The big banks for precious metals have been meeting daily to set prices since 1897. Now, gold has set an all-time record of $1518.20 an ounce, and silver's approaching the so-called "psychological barrier" of $50 an ounce. Both approached record highs today and then dropped off a bit as the dollar increased in value. Peter Coy is Economics Editor for Bloomberg BusinessWeek .
Standard & Poor's Lowers Its Outlook on US to 'Negative' The ratings agency Standard and Poor's is taking a new look at what has been the world's most secure economy. Nearly $14.3 trillion in debt has led to what's called a "negative" outlook on the United States. This morning, that caused a drop is stock prices and a rise on interest rates on US Treasuries. Peter Coy is Economics Editor for Bloomberg BusinessWeek .
Signs of Light in the Economic Darkness? Based on signs of life in the economy, the stock markets rallied a bit this week, but restoring the wealth lost in recent months is a long-term proposition. Today at the Brookings Institution, Larry Summers, who heads President Obama’s Council of Economic Advisors, said he’s confident about the future. Peter Coy is Economics Editor of BusinessWeek magazine.
Barack Obama and Housing Foreclosures In Phoenix, Arizona today, President Obama says it's worth $75 billion to rescue nine million homeowners already in default or “underwater” with loans worth more than their houses. He said his plan would not reward “the unscrupulous or irresponsible” -- speculators, dishonest lenders or buyers who knew they were assuming obligations they couldn't afford. We hear how homeowners can qualify for assistance and get some informed reaction.
Obama to the Rescue for Homeowners In Phoenix, Arizona today, President Obama says it’s worth $75 billion to rescue nine million homeowners already in default or “underwater” with loans worth more than their houses. He said his plan would not reward “the unscrupulous or irresponsible” -- speculators, dishonest lenders or buyers who knew they were assuming obligations they couldn’t afford. We hear how homeowners can qualify for assistance and get some informed reaction.
Fed's Latest Move to East Credit Crisis Yesterday, Federal Reserve chief Ben Bernanke called for a stimulus package from Congress. Today, the Fed announced that $500 billion will go the money-market mutual-fund industry, the latest effort to get credit flowing again. Peter Coy is economics editor for BusinessWeek magazine.
Will the Latest Bailout Plan Fix the Crisis in Confidence? Earlier we heard about today's announcement that $250 billion of the $700 billion bailout will be used to prop up American banks . We've heard about the immediate reaction from Wall Street. What about getting credit flowing again? Will the latest dramatic actions help ease the likelihood of a deeper recession? Peter Coy is Economics Editor of BusinessWeek magazine.
Fed Tries to Help Credit Market The Federal Reserve has taken its strongest action yet to unfreeze the credit markets. Chairman Ben Bernanke, speaking to a business group in Washington this afternoon, announced "a new facility that will help provide liquidity to term funding markets by purchasing three-month commercial paper and asset-backed commercial paper directly from eligible issuers." Peter Coy is economics editor at BusinessWeek magazine.
A Brief Lull in the Financial Storm? Yesterday's vote in Congress repudiated leaders of both parties, but it was President Bush's plan that went down to defeat with a majority of Republicans voting now. Today, the President said the stakes are high for all Americans, "a choice between action and the real prospect of economic hardship for millions of Americans. For the financial security of every American, Congress must act." Peter Coy is economics editor of BusinessWeek magazine.
The Fed Lowers Interest Rates Despite strains in the housing and credit markets, the economy picked up speed this summer, growing at 3.9%, the fastest rate in one and a half years. Nonetheless, the Federal Reserve was widely expected to lower interest rates at today's meeting and it did— by.25% to 4.5% . We find out why from Peter Coy, economics editor at BusinessWeek .
Fed Moves to Cut the Discount Rate, Lifts Stocks With the sub-prime lending crisis rocking financial markets, the Federal Reserve today c ut the so-called "discount rate" by half a percentage point to 5.75%. The Dow Jones , Nasdaq and Standard & Poor's 500 went up. Peter Coy is economics editor for BusinessWeek magazine.
Fed Chief Speaks Out on Economy and Sub-Prime Plunge On Federal Reserve Chairman's Ben Bernanke's second day of testimony before a committee of Congress, he had more to say about the problem of sub-prime mortgages. The Fed has been criticized for lax oversight. Peter Coy is Economics Editor for BusinessWeek magazine.
House Republicans release their Obamacare replacement As two House committees take up "repeal and replacement" of "Obamacare," there may be life left in the Affordable Care Act after all. Even Republicans are divided, and proposed changes won't make good on President Trump's promise to provide "health insurance for everybody."
Getting answers on phone taps, Russia and leaking The Directors of the FBI and the NSA testified on Capitol Hill today there's no evidence for President Trump's claim he was wire-tapped by former President Obama. We'll hear about that and the investigation into Russian tampering with last year's presidential campaign.