Marketplace's Paddy Hirsch explains what QE3 is supposed to do for the economy.

The European Central Bank is set to go on a bond-buying spree in an effort to save the euro and stem the debt crisis. But how does it work? It helps to think about candy.

Presidential hopeful Mitt Romney says he put his investments in a blind trust to avoid any conflict of interest. So what exactly is a blind trust? Sr. Producer Paddy Hirsch explains with a sausage factory analogy.

The Treasury Department is planning to roll out a floating-rate note program in about a year. But what is a floating-rate note and why do we need one? Sr. Producer Paddy Hirsch explains with a boat analogy.

What exactly is a Eurobond and why are so many people interested in having them? Sr. Producer Paddy Hirsch explains with a little help from the three little pigs.

The Federal Reserve's most recent policy move is simply a way of driving down interest rates. But how does it work? Sr. Producer Paddy Hirsch explains Operation Twist with a simple analogy.

A bank run occurs when customers run down to the bank and demand their money back. So, why can't the bank just return the cash? Sr. Producer Paddy Hirsch explains using a human heart analogy.

Big bets on an obscure index lay at the heart of JPMorgan's losses this week. Sr. Producer Paddy Hirsch explains how an index of CDS works.

Surely you've heard the term assets -- they can be toxic, liquid, or tangible. Sr. Producer Paddy Hirsch explains what the word “assets” really means.

Seventeen banks have failed so far this year, but their customers can rest easy -- thanks to the Federal Deposit Insurance Corporation, as Sr. Producer Paddy Hirsch explains.

Sr. Producer Paddy Hirsch explains the responsibilities of a fiduciary with a taxi metaphor.

Lawmakers are considering yet another bill to ban insider trading. But the term "insider trading" seems open to interpretation. Senior Producer Paddy Hirsch helps us understand what it is and why it's a big deal.

Prop trading, as it’s called on Wall Street, is the target of the Volcker Rule, a centerpiece of the Dodd-Frank financial reform act. Marketplace’s Paddy Hirsch explains what proprietary trading is, and why it’s potentially dangerous for our savings...

So Facebook has filed to go public. How exactly does an initial public offering work? Marketplace's Paddy Hirsch explains.

Learn the difference between secured and unsecured debt -- a lesson that Irish taxpayers could use as they face the prospect of footing the bill for the bailout of state-owned Anglo Irish Bank.

Private equity funds are groups of investors that flip companies for a profit. It’s the technique they use that makes them special, as senior producer Paddy Hirsch explains.

If ever there was a word that you’d expect to find in a Harry Potter novel, it’s re-hypothecation. But it's not just a magic trick.

Junk. Not a nice word. And when it comes to bonds, not a particularly accurate word, either. Junk is something useless, right? Well, "junk" bonds are definitely not useless. In fact they're extremely useful. Sometimes. Marketplace Senior...

Marketplace Money Senior Producer Paddy Hirsch explains why Europe needs dollars instead of euros as the EU tries to sort out its financial problems.

There's been a lot of talk recently about the need to ring-fence certain economies in Europe. These aren't the economies that have defaulted or been bailed out; these are the economies that are too big to fail. Italy is the most glaring example.

Berlusconi may be gone, but Italia's problems persists. Senior Editor Paddy Hirsch explains how Italy got into the mess it's in today.

If Greece accepts the terms of a new aid package it's expected to get a haircut on its debt. But Sr. Editor Paddy Hirsch explain why that haircut...

Most people have dark thoughts when they hear the word exposure, but exposure can be beneficial -- if it's done in moderation, as I explain in this...

Companies are hoarding cash -- to cushion themselves if the economy worsens. But where do they keep all that money? Senior Editor Paddy Hirsch explains

If you've been following what the Federal Reserve is doing with the interest rate of late, you have probably heard them talk about the yield curve...