Treasury Secretary Henry Paulson on Wednesday said he'd direct the $700 billion bailout fund toward uses like consumer debt — and away from dicey mortgage assets. Solid news for some; more uncertainty for others. CNBC's expert guests offered their outlooks.
Global Economy is Miserable; U.S. Looks Best
"I don't think the market has fully embraced the fact that China could really fall very hard," said Jessica Hoversen of MF Global. She analyzes what China's iron ore production means for cap ex — and the world.
TARP Critics Wrong To Attack Banks' Lending Failure
The original legislation was an emergency economic stabilization act, not a stimulation act. It was merely designed to stabilize the financial sector, says Doug Dachille of First Principles Capital Management.
No TARP Aid for Non-Banks — like American Express?
Frederic Mishkin, Columbia professor and former Fed Governor, fears the dangers of "just handing out money without appropriate regulation" — but also warns that "handing out that money and then increasing that regulation could also be very dangerous."
Here's Why Banks Aren't Lending
Donald Powell, former FDIC chairman says banks "don't want to go back to what got them into trouble to begin with." He says financial entities won't loan money to people who cannot repay that debt, so "we need to give them a little bit of time."
Macy's Posts Q3 Loss, But Holds Guidance
Liz Dunn of Thomas Weisel Partners says the legendary department store chain already has very strong free cash flow and "their cash flow situation gets much better for next year." See her analysis of Macy's surprising survival story in a brutal retail environment.
Best Bets In a Recovery: Small- and Mid-Cap Stocks
What is David Sowerby of Loomis Sayles buying? Here's a hint: "Small- and mid-cap stocks have generally beaten large-cap stocks by about 10 percent on a cumulative two-year return basis."