Fallout: The Financial Crisis

The government's implicit backing of Freddie Mac and Fannie Mae has apparently convinced investors that the two mortgage giants are a safe bet. John Dimsdale finds out why.

Labor Day has become a time for end-of-summer sales and barbecues, but it really is intended as a way of honoring workers. With that in mind, Nancy Marshall Genzer looks at how the American worker is doing.

The U.S. Chamber of Commerce today issued its top economic priorities, and the list includes more than housing, credit and energy costs. From Washington, Danielle Carson reports.

Today the Federal Deposit Insurance Corporation warned of more bank failures ahead, with bank earnings dropping 80% from a year ago. John Dimsdale reports.

Host Kai Ryssdal goes over the week's big financial stories with stockbroker and business analyst David Johnson in Dallas, Texas. Fannie and Freddie, the Russians and gyrations on the stock market come up.

The Federal Reserve chairman says the financial storm isn't over, but inflation should ease. He also speaks of ways to discourage the risk-taking that started the credit crunch. Amy Scott reports.

Sales of Fannie Mae and Freddie Mac plummeted today on fears that if the government steps in to save the mortgage giants, taxpayers will benefit but shareholders will be wiped out. Steve Henn reports.

JP Morgan Securities predicts investment bank Lehman Brothers will take a huge hit in the third quarter from bad mortgage investments. Nancy Marshall Genzer reports on speculation Lehman might not survive.

Housing starts hit a 17-year low in July and a wholesale price report rose to a 27-year high, monthly statistics say. John Dimsdale puts the numbers in perspective and asks -- What's next?

One report says Treasury officials are worried the mortgage giants won't survive without government help. Their true value of assets on their books is questoned too. Steve Henn reports.