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.
Hostile takeovers
We all know what a takeover is. That's when one company agrees to be bought by another. But what happens when companies don't agree and the takeover goes hostile? Senior Editor Paddy Hirsch explains.
Derivatives
Credit default swaps? They're complicated -- and scary! The receipt you get when you pre-order your Thanksgiving turkey? Not so much. But they have a lot in common: They're both derivatives. Senior Editor Paddy Hirsch explains.
Bonds, notes and bills
So much government debt! But what's the difference between the Treasury's bills, notes and bonds? Senior Editor Paddy Hirsch explains.
Inflation
Most economists agree that inflation of about 2% or 3% annually is a natural function of a growing economy. But people are worried government stimulus measures could spark much higher inflation. Senior Editor Paddy Hirsch explains
High-frequency trading
High-frequency trading is creating a ruckus on Wall Street. Marketplace Senior Editor Paddy Hirsch explains what high-frequency trading is and why some people are up in arms about it.
Factoring
Many small businesses get the cash they need to operate and expand from so-called factors. One of the biggest factors in the business is CIT, and with CIT on the ropes, small businesses are worried. Senior Editor Paddy Hirsch explains what factoring is, and how it works.
Financial alchemy
Many asset-backed securities have been downgraded from AAA recently. But at least one issuer has miraculously repackaged a downgraded deal to make some of its bonds worth a AAA rating again. Senior Editor Paddy Hirsch explains.
Where's the toxic waste?
Banks are paying back TARP money and claiming they're the picture of health. So what happened to all those toxic assets that were clogging their arteries a few months back? 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.
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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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