Marketplace Senior Editor Paddy Hirsch gives a bubbly explanation of the intricacies of collateralized debt obligations those financial instruments that got us into this financial mess.
April 14th, 2009 | Winter Ross Charlton | 0 comments | ContinuedWall Street
Market Videos: Securitization - How Credit Cards Become Asset Backed Bonds
Mortgages arent the only financial instruments that get turned into securities. Marketplace Senior Editor Paddy Hirsch explains how companies make money by buying credit card debt and bundling it.
April 14th, 2009 | Winter Ross Charlton | 0 comments | Continued
Market Videos: Quantitative Easing
Now the Federal Reserve has effectively cut the target lending rate to zero, it only has one more weapon in its arsenal. Quantitative easing. Senior Editor Paddy Hirsch explains what this nuclear option it is, and what the Fed hopes itll do.
April 14th, 2009 | Winter Ross Charlton | 0 comments | Continued
Market Videos: Cramdowns
A debate is raging in Washington, D.C., about how to deal with Americas foreclosure problem. One proposal is to restructure the loans using a tool usually seen in bankruptcy courts: The cramdown. Senior Editor Paddy Hirsch explains.
April 14th, 2009 | Winter Ross Charlton | 0 comments | Continued
Market Videos: Over The Counter
Credit default swaps have worsened market anxiety because they are conducted in the over-the-counter market, where regulations are few and information about risk is often hidden. Marketplace Senior Editor Paddy Hirsch explains.
April 14th, 2009 | Winter Ross Charlton | 0 comments | Continued
Market Videos: Credit Default Swaps
When the analysts and experts talk about the current financial crisis, they often refer to credit default swaps. So, what exactly is a credit default swap? Marketplace Senior Editor Paddy Hirsch goes to the whiteboard for this explanation.
April 14th, 2009 | Winter Ross Charlton | 0 comments | Continued
Market Videos: Toxic Assets
If youve been following the problems encountered by the banks, youve probably come across the phrase toxic assets. Theyve poisoned banks balance sheets and brought them to the brink of failure. But what is a toxic asset, exactly? Marketplace Senior Editor Paddy Hirsch explains.
April 14th, 2009 | Winter Ross Charlton | 0 comments | Continued
Market Videos: Leveraging and Deleveraging
Leveraging or borrowing has been cited as one of the contributors to the financial crisis. Senior Editor Paddy Hirsch explains how the move to deleverage or reduce debt is prompting wild market swings and concerns about deflation.
April 14th, 2009 | Winter Ross Charlton | 0 comments | Continued
Market Videos: Collateral Calls
Millions of Americans are wondering why AIG has paid so much taxpayer money to other banks. One reason is because AIG has had to honor collateral calls — demands made by banks on the insurance contracts its written. Senior Editor Paddy Hirsch explains.
April 14th, 2009 | Winter Ross Charlton | 0 comments | Continued
Market Videos: Public Private Partnership
The U.S. Treasury Department plans to recruit private investors to take toxic assets off banks balance sheets. Senior Editor Paddy Hirsch explains how the plan is supposed to work.
April 14th, 2009 | Winter Ross Charlton | 0 comments | Continued
Market Videos: Naked Short Selling
The practice of short selling has been blamed for the collapse of several major companies’ shares during the financial crisis. What is short selling? Marketplace Senior Editor Paddy Hirsch explains.
April 14th, 2009 | Winter Ross Charlton | 0 comments | Continued
Market Videos: Shadow Banking
The shadow banking system is a key component of the U.S. economy, but the financial crisis has frozen it solid. Senior Editor Paddy Hirsch explains what shadow banking is and why it’s important enough to warrant its own bailout, called the Term Asset-Backed Securities Loan Facility, or TALF.
April 14th, 2009 | Winter Ross Charlton | 0 comments | Continued
