If a bank wants to deposit cash with the European Central Bank, it won't earn interest. In fact, the bank will actually have to pay the ECB for parking cash. It's designed to boost Europe's economy.
The number of fathers at home in the U.S. has nearly doubled since 1989. A desire among more men to stay home with the kids has a lot to do with that, but so does the inability to find a job.
A team from Utah State University have developed a smartphone application so "citizen scientists" can help them track animal-vehicle collisions.
One hungry reporter goes on a quest to find out why his package of Peanut Butter M&M's weighs 0.06 ounces less than a package of Milk Chocolate M&M's.
Altaf Hussain has been running his powerful Pakistani political movement from self-imposed exile for 22 years. After he was arrested in London on Tuesday, Karachi came to a grinding halt.
Salvation Army canteen workers in Brighton operating a doughnut machine flown in from Canada to satisfy Canadian troops appetites for donuts on January 1, 1941.
From the Marketplace Datebook, here's a look at what's coming up Friday, June 6:
It's the first Friday of the month which means all eyes will be on the May jobs report.
The Federal Reserve is scheduled to issue consumer credit data for April.
On June 6, 1998, HBO's "Sex and the City" premiered. It ran for six seasons and fortunately remains in syndication.
And the Great Wisconsin Cheese Festival gets underway in Little Chute. That's right, people: cheese and doughnuts.Marketplace for Thursday June 5, 2014by Michelle PhilippePodcast Title Datebook: So, who's picking up the doughnuts?Story Type BlogSyndication SlackerSoundcloudStitcherSwellPMPApp Respond No
The Tampa area has more underwater mortgages than anywhere else in America: roughly 30 percent. But even there, things are getting better fast. That’s down from nearly 41 percent this time last year, according to CoreLogic.
“We’re seeing fewer people who are underwater. Prices have come back up,” says Brad Monroe, director of the Greater Tampa Association of Realtors.
Homeowners are telling his members they’re finally out from under their mortgages and ready to move. “Calling them back and saying, 'It’s time now. Prices are there and we can do it,'” he says.
Data from CoreLogic show that nationally, about 12 percent of homeowners owe more than their homes are worth. That’s a big drop from the first quarter last year when the number was around 20 percent.
“Which is really good news for the housing market,” says Mark Fleming, CoreLogic’s chief economist.
“So many homeowners didn’t have equity or were under equity and didn’t participate in listing their homes for sale. And that’s why house prices increased over the last year or two so dramatically in those markets,” Fleming says.
This is a virtuous cycle. Rising home values brought back equity to a lot of homeowners. That means more people can move if they want to. And, more homes on the market keeps prices from rising too fast.
But just because people are no longer underwater in their mortgages doesn’t mean they can move right away. They need enough equity to pay for the expense of selling one home and a down payment on a new one.
“Paying broker’s fees, for example,” says Kostya Gradushy, project manager at Black Knight Financial Services. “And, if you only have 5 percent equity in your house, you’re not going to be able to cover those costs.”
Black Knight says one in five homeowners today doesn’t have enough equity in their current home to afford a new one.
Edward Snowden didn't trust The New York Times with his revelations about the NSA because the paper initially spiked an earlier story about the warrantless wiretapping of Americans.
General Motors Chief Executive Officer Mary Barra (center), Mark Reuss (left), Executive Vice President, and Dan Ammann (right), President, hold a press conference at the General Motors Technical Center on June 5, 2014 in Warren, Michigan. Barra spoke to provide an update on GM's internal investigation into the ignition switch recall at the General Motors Technical Center.
General Motors CEO Mary Barra has responded to the auto recalls by firing 15 employees. She also ordered a compensation plan for the victims of the deadly auto defects.
After a report from an internal investigation was released, Barra said the company has some culture issues.
"Mary Barra has made this point that General Motors used to be a cost-focused culture, and now it’s becoming more customer-focused," says Micki Maynard, Director of the Reynolds Center for Business Journalism at the Cronkite School at Arizona State. "But if you read the report, things were going on in 2012 and 2013. It’s not like all of this was ten or fifteen years ago, this is very recent stuff. So I think there’s going to be a lot of work to do."
So if GM culture hasn’t improved in the last few years, what will it take for it to change?
"Maybe nothing can change it," says Maynard. "It might be that General Motors is the way it is, and you have to manage around that. In a good financial situation, you do just fine. But when things go bad, you end up in bankruptcy and need a bailout."Marketplace for Thursday June 5, 2014Interviewed By Kai RyssdalPodcast Title Vehicle ignitions aren't the only problem at GMStory Type InterviewSyndication SlackerSoundcloudStitcherSwellPMPApp Respond No
Remember when bottled water first came out? I remember thinking, "Who would actually ever pay for water?" I also remember balking at a 75 cents ATM fee years ago.
I imagine that's exactly how European banks are feeling right about now. The European Central Bank's new policy of negative interest rates is, essentially, charging banks for something that it used to pay banks for.
"Negative interest rates. What that means is that they are now charging commercial banks for leaving money at the central bank," says Beth Ann Bovino, U.S. chief economist at Standard and Poor's.
You know how banks usually pay you for storing your money with them? Now the ECB is actually charging European banks for the privilege.
So... how does this help the European economy?
"The ECB... is trying to create a hot seat," says Paul Kedrosky, a partner at SK Ventures. "They just want to make it so darn uncomfortable to continue sitting there with your deposits, that you say, 'Oh, screw it! I’ll lend it out.'"
Lending is exactly what European banks haven’t been doing. They’ve been playing it safe and stashing their money at the ECB. Businesses and individuals aren’t getting loans, so they aren’t hiring or buying and Europe’s economy is grinding to a halt.
"The Central Bank, their business is to get the real economy going," says Bovino. To do that, The ECB is making it expensive for banks to save. "Hopefully that means more lending to households and businesses."
So… will it work?
"Many banks in Europe are still fragile and recovering from the trauma of the world financial crisis," says Matthew Slaughter, a professor at Dartmouth’s Tuck School of Business. "How much more likely they will be to make a lot more loans is an open question."
Slaughter says banks might just put their money in another safe haven, like U.S. Treasury Bonds. That would be good for the U.S., but wouldn’t help Europe much.
The ECB can only make the seat hot, now it’s up to the banks to decide where to move their assets.
And maybe Marketplace will convince me to pay them one of these days...