Economy

The global financial crisis is a "once-in-a-century credit tsunami" that policymakers did not anticipate, former Federal Reserve Chairman Alan Greenspan told Congress. Stabilizing the housing market is a key to ending the financial crisis, he said, but that is not likely to occur for "many months in the future."

Economy

Stock prices tumbled Wednesday, falling to five-year lows. The drop followed disappointing earnings reports from major companies. Firms as diverse as Boeing, Merck and DuPont have all said their profits fell short of expectations. The bad news is also taking a toll on consumers, who are cutting back on spending.

Interviews

William Donaldson, the former head of the Securities and Exchange Commission, says the U.S. is going to go through "some rough times" before the economy turns around. He says the U.S. must work with other countries to develop "mutually recognized rules for regulation."

Business

Talks aimed at settling the Machinists Union strike at Boeing resume Thursday at the request of a federal mediator. Both the union and management have strong incentives to settle. Boeing reported a big earnings decline Wednesday.

Economy

Steve Forbes, the publisher of Forbes magazine, has the cover story in this week's issue. Forbes — who ran twice for the Republican presidential nomination — is now a special economic adviser to John McCain. Forbes says the government must take emergency steps to save the economy, like buying up troubled mortgages and purchasing stock in financial firms.

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