financial markets

Fed provides further bailout details

Washington -- The U.S. Federal Reserve revealed Wednesday the extent to which it was stabilizing financial markets at the height of the credit crunch.

The central bank opened a variety of lending facilities when the financial sector went quickly from wobbly to vertigo in the fall of 2008. At that point, banks clung to their cash, forcing corporations that use quick market loans to scramble for an alternative.

While banks were granted cash infusions through the $700 billion Troubled Asset Relief Program, the Fed's list shows the extent to which it was covering the financial industry's lending expectations.

Digging out of poverty not just luck

Boston -- U.S. and Thai researchers say they found a number of factors, including education, are instrumental in helping people dig out of poverty.

Economists Anan Pawasutipaisit of Thammasat University in Thailand and Robert Townsend of Massachusetts Institute of Technology in Boston studied households in four Thai provinces to learn who might be most successful and why.

Over the course of the seven-year study, poor households grew their net worth by an average of 22 percent per year while rich households grew by just 0.09 percent.

Should You Sell Emerging Markets Now?

With the rise of the global economy, including international investments in your portfolio has become almost a necessity. Yet just as some are turning to emerging markets as the last refuge of strong economic growth in the world, one longtime stock guru is sounding the alarm that having too much exposure to international stocks could be a big mistake in the years ahead.

 

Premier Wen pledges support for Europe

Athenes, Greece -- Chinese Premier Wen Jiabao said China would continue supporting Europe through financial markets and increase trade with Greece.

Speaking in Athens on Sunday, Wen said China has "stayed at Europe's side to overcome the crisis and allow the recovery."

China has no plans to reduce its portfolio of European bonds, he said. In addition, he said China would be in the market for Greek bonds when the government returns to the market, EUobserver reported Monday.

Wen, on a week-long tour of Europe, also said China would double its trade with Greece in the next five years.

After his visit to Greece, Wen was headed to Brussels for meetings with other leaders in a European-Asian summit.

Goldman strikes gold with $550mn SEC settlement

Goldman Sachs does not seem to have lost anything after paying $550 million fine to the Securities and Exchange Commission (SEC) to settle the civil fraud case against it. In fact, the settlement with SEC has come as a big win for the New York based global investment banking and securities firm.

A Fool Looks Back

Just as the financial markets were collapsing, Warren Buffett made a timely bet on Goldman Sachs (NYSE: GS) . The move seemed to validate the investment banker at its industry's biggest time of crisis. For a brief moment in time, Goldman was the golden child.

Is Another Lost Decade Coming for Stocks?

The plummeting financial marketsin 2008 scared a lot of investors out of stocks. Yet despite the fact that those steep declines brought big losses to shareholders in a hurry, it's only now that the full brunt of the longer-term trend has become clear.

Could These ETFs Be Your Ticket to Better Returns?

You can always find examples to prove the effectiveness of buy-and-hold investing . But unless you know exactly what you're doing, it's challenging to confidently construct a portfolio of long-term winning stocks. For those who prefer to steer clear of stock picking, exchange-traded funds (ETFs) provide the diversification benefits of index funds, with some of the convenience that comes from trading on stock exchanges.

Credit Cards: Still No Sign of Recovery

Moody's released an industrywide report on credit card quality earlier this week, and there's really only one takeaway from it: There's no recovery in the credit card industry.

Weird Financial News

Lest you focus only on stocks analysts expect to double, or the biggest stock bargains, here's a brief recap of some of the more unusual financial news of the past few weeks:

Baucuscare: Who's Paying?

After a summer of contention, we finally have the first of several health-care reform bills for Congress to consider after the summer break. Senate Finance Committee Chairman Max Baucus is following in President Obama's footsteps, offering a middle-of-the-road compromise that neither side seems to like very much.

Institutionalized Speculation

It's been a tough year since what I like to call The Autumn of the Massive Collective Pants-Soiling. Have we grown up, sobered up, or started building a healthier economy? I think not. Welcome to the world of institutionalized speculation.