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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

Whiteboard Derivatives

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

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.

Whiteboard Inflation

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

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

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

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?

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

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.

Paddy stands in front of the whiteboard

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.

Whiteboard Cap n trade

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.

More Whiteboard videos »

Comments

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  • By Jim White

    From Atlanta, GA, 10/27/2009

    Excellent! Love your method of breaking complex subjects into simpler day-to-day analogies. Very easy to understand and remember.

    Jim

    By Vinay Sharma

    From Charlotte, NC, 04/16/2009

    GREAT work, Paddy! You are now my new financial hero!!! We hear the media muddy all these concepts to their preference and here you are separating what is milk and what is water...I couldn't find few Harvard MBA's who brought us all here but you (hoping you are not)to enlighten us...forever grateful!!! BTW, I am drinking more since I started seeing these videos, no wait...these help me justify...good humor as well! Thanks a TON!!!

    By Rich Hu

    From New York, NY, 03/17/2009

    Great explanation, thanks a lot!
    One silly question: when everyone was borrowing, from whom did they all borrow? It cannot be the banks since they were heavy borrowers themselves, did all that money really come from people's savings or there were some kind of accounting games going on? say, banks were just "creating" money with each other on their books.

    By Bryce Bidwell

    From Urbana-Champaign, IL, 02/03/2009

    MARK JOHNSON from COLLEGE PARK, GA, perhaps you should take an etiquette course at your local community college to learn the "corrcet" way to make a suggestion without insulting someone by implying they lack knowledge in business fundamentals.

    Chas Windham from the great state of IL, feel free to produce your own set of free, high quality creative videos that use humor and analogy to explain often-obscure financial concepts. Make sure to post the link so that we can comment on how unprofessional and how appallingly low quality it likely would be.

    Paddy Hirsch, keep up the good work! I really enjoy these and I hope that we get to hear more from you in the future.

    By Avery M

    From Northampton, MA, 01/25/2009

    :Quote:
    By tony p
    From schaumburg, IL, 12/15/2008

    These are great videos meant to explain in layman's term what's going on in the marketplace.

    He explains it without speculating like almost all the talking heads do know a days, great job Paddy!

    By Evan Arthur

    From Halifax, NS, 01/11/2009

    If the balloon/market deflates what's the worst that can happen?

    By justin muyot

    12/28/2008

    hi. great discussion. would you consider uploading it on another video provider. (i.e. youtube) it always stops midway and i have to refresh it.

    By Gabriel Gomez

    From Shirley, NY, 12/25/2008

    Chas from IL and Mark from GA should increase their dosage and loose their bowties; give us a break geniuses.

    By Keith Wensel

    From Edmonton, AB, 12/18/2008

    Excellent explanations / analogies as what has unfolded in the marketplace and the current actions of the central banks / banks / governments trying to mitigate the fallout. Perhaps there could be a Whiteboard session on indicators when the market has crossed over from deleverage to deflation? The market seems to be at this tipping point now - will the governments massive capital injections into the financial system stem deflation or are we into a negative feedback loop already (ie. deflation)?

    By tony p

    From schaumburg, IL, 12/15/2008

    These are great videos meant to explain in layman's term what's going on in the marketplace.

    He explains it without speculating like almost all the talking heads do know a days, great job Paddy!

    By MARK JOHNSON

    From COLLEGE PARK, GA, 12/09/2008

    One of the definitions Mr. Hirsch gives for leverage is "debt to capital". Technically this is incorrect because debt is a form of capital. The corrcet definition should have been "debt to equity". It would be good to have your reporters take business courses so that they obtain knowledge in business fundamentals.

    By Chas Windham

    From IL, 12/09/2008

    Will someone PLEASE clip a lavaliere microphone on Mr. Hirsch's shirt collar? The audio in these videos is appalling. (And you call yourselves media professionals?)

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