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Schumpeter superior to Smith

Schumpeter's creative destruction is better for understanding the nature of the US economy than Smith's invisible hand and perfect competition, according to new research from the Philadelphia Federal Reserve.

Wells Fargo bids for Wachovia

Wells Fargo, a US bank, looks set to snag Wachovia from Citigroup, the world's biggest lender, after offering $15.1 billion for the troubled bank. The move could see the Federal Deposit Insurance Corporation (FDIC), which manages the US's deposit…

An offer they couldn't refuse

US Treasury secretary Hank Paulson's plan to buy troubled assets could prove the vital action in averting a financial meltdown. But only if the Treasury can take the right steps to put a floor under the market, says Claire Jones, the editor of Central…

More banks will fail if we don't act: Paulson

Ben Bernanke, the chairman of the Federal Reserve, and Hank Paulson, the US Treasury secretary, have told lawmakers that a failure to rush through proposals for the purchase of up to $700 billion-worth of distressed assets would cripple the US economy.

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