Marketplace Whiteboard
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Margin calls and the financial market's decline
Some of the rapid drops we've seen in the financial markets in recent weeks have been fueled by margin calls. How do margin calls work? Marketplace Senior Editor Paddy Hirsch explains.
Dark pools
Dark pools are exchanges where people trade stocks anonymously. Senior Editor Paddy Hirsch explains how they work, and why the SEC is considering regulating them.
The 'repo' market
Senior Editor Paddy Hirsch explains why the repurchase (or repo) market is a vital part of the financial system, and why the government is considering changes to it.
Meet Cap 'n Trade
Cap and Trade is the linchpin of the government's effort to curb carbon emissions. Senior Editor Paddy Hirsch explains how the cap and trade model works.
Capital structure
In stories about the auto companies and the banks, we've been hearing about debt-to-equity swaps and exchanging preferred shares for common stock. To understand how those work, you need to understand a company's capital structure. Senior Editor Paddy Hirsch explains.
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.
The 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.
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 it's written. Senior Editor Paddy Hirsch explains,
The Uptick Rule
Bankers have been debating bringing back the uptick rule for months, if not years. This week the debate made it to Capitol Hill. Senior Editor Paddy Hirsch gives a quick and dirty explanation of what the uptick rule is, and why it could be reinstated to turn the American taxpayer into one of Citigroup's biggest stockholders. Senior Editor Paddy Hirsch explains.
Cramdowns
A debate is raging in Washington, D.C., about how to deal with America's foreclosure problem. One proposal is to restructure the loans using a tool usually seen in bankruptcy courts: The "cramdown." Senior Editor Paddy Hirsch explains.
Write-downs
markets have deteriorated, "write-downs" have figured prominently in more and more corporate reports. What are write-downs all about? Marketplace Senior Editor Paddy Hirsch explains.
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Comments
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From Sacramento, CA, 04/19/2009
Please include the date as the clips publicize, because you often mention the "current market" I think it is helpful to the viewers to be able to see the relevance of what is going on in the market respectively.
From Urbana-Champaign, IL, 02/03/2009
One of my favorites by far. The fact that it's so funny to picture these two girls drawing up this intricate contract, etc. makes this all the more memorable.
From Barcelona, 01/03/2009
Excellent explanations ... I am from investment banking and I learnt things very hard. This will be very useful for people who are new to these concepts.
From Mumbai, India, 12/25/2008
Hey Paddy,
Thanks for making these concepts look so easy. Everytime I need to assure myself that yeah I do actually now understand how the market and the economy works and what CDOs and CDSs are - I just visualize your drawings! Amazingly lucid explanations taught in the most creative of ways! Superb stuff. This goes for all your videos. I've become a huuuge fan. Thanks a lot for spreading the education. :)
Regards,
Mahesh
From Shirley, NY, 11/27/2008
Nice job Paddy, more... more... more...!
11/26/2008
Buying on margin is very risky, usually done by traders and non-risk averse investors betting they will make a lot of money in a short period of time. Now I understand why we've been having continuous sell-offs in the market. Very well explained.
From Calabasas, CA, 11/24/2008
Please, educate me (I did not grew up in US).
1 - What is "US economy" without Wall Street speculators, tricksters, lawyers, doctors and illegal workers?
2 - What is "US defense" if "US economy" sold to oversea and Saddam was Osama's enemy?
Thanks
Lev
From Manchester, NH, 11/24/2008
This is terrific...
From Reston, VA, 11/15/2008
You mean to tell me that I don't need an MBA from Wharton to understand this.
Thank You for doing this! Please continue. There are nerds like me that "dig" this.
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