Greenspan: 33% recession chance despite Fed cut

CBS News

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[Music] Federal Reserve chairman Ben Bernan was on Capitol Hill and again he assured lawmakers that the central bank will take steps to curb The Fallout from the mortgage mess Bernan also said the Fed was considering a Crackdown on abusive practices in the subprime mortgage Market this week's interest rate cut by the FED may not be enough to keep the economy from slipping into a recession that's the word from former Federal Reserve chairman Alan Greenspan who says there is still a better than 33% chance of a recession he says a further drop in home prices could still hurt consumer spending meantime the cost of financing a home inched higher this week the average rate on a 30-year fixed rate loan Rose to 6.34% from 6.31% last week while the rate on a 15-year loan ticked up to 5.98% on Wall Street after two days of back-to-back rallies investors took a time out the Dow Jones Industrial Average fell nearly 49 points while the NASDAQ Composite dipped 12 and crude oil surged further into record territory breaking $83 a barrel the weak dollar and last week's decline in oil supplies sent prices skyrocketing that's your money watch log on to cbsnews.com for more in New York I'm Alexis Christ offerus

Dow gains 76 on rate cuts; Rather sues CBS $70M

CBS News

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[Music] will the rate cut rally continue that's the question facing investors after two days of gains triggered by the federal reserves larger than expected interest rate cut investors will be keeping an eye on some big Wall Street firms today Bear Sterns and Goldman Sachs are set to release quarterly earnings Wall Street be Sterns which had high exposure to subprime loans on Wall Street Wednesday the Dow rallied 76 points while the NASDAQ climbed nearly 15 Walmart will start offering employees more health care options next year including $4 generic drugs and healthc care plans with premiums under $5 a month Walmart's employee health coverage has been the target of critics who say it's unaffordable for some of its 1 and a half million workers keep your eye on shares of CBS and Viacom former CBS Evening News anchor Dan Rather filed a $70 million lawsuit against the network and its former parent company rather claims the network made him a scapegoat for a discredited story about President Bush's military service Ford is hoping new colors will help it sell cars and trucks in the next 2 years Ford says nearly half of its Vehicles will feature new colors like blazing copper and white chocolate research shows nearly 40% of consumers will walk out of a dealership if it doesn't have a vehicle they want in the color they want that's your money watch log on to cbsnews.com for more in New York I'm Alex is christopherus