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Why does this happen? Why is a hedge fund like Global Alpha affected by events in markets far removed from its bread-and-butter exposure? The root of the problem is high leverage. For example, when this debacle hit, one of Goldman's funds was leveraged 6 to 1, so...

Author: /time Magazine | Title: Blowing up the Lab on Wall Street | 8/16/2007 | See Source »

It's an air travel scenario that has become all too familiar for Marion Blakey, administrator of the Federal Aviation Administration (FAA). A severe thunderstorm hits a hub airport like Dallas-Fort Worth, grounding all of the planes there for two hours. Soon those delays spread to airports nationwide, and...

Author: /time Magazine | Title: An Answer to Flight Delays? | 8/15/2007 | See Source »

When a new outbreak of Foot-and-Mouth disease (FMD) was confirmed on a cattle farm in Surrey, southern England, in early August, Britain braced for the worst. In 2001, the last time the U.K. was hit by this highly contagious illness affecting cloven-hoofed animals, it led to the...

Author: /time Magazine | Title: Herd of Trouble | 8/10/2007 | See Source »

After the bridge collapse Minneapolis on Aug. 1, the Department of Homeland Security announced that there was no evidence of terrorism. Similar declarations followed the July explosion of an 83-year-old steam pipe in Manhattan and an August 2003 power blackout that affected 50 million people and shut down...

Author: /time Magazine | Title: We've Come Undone | 8/9/2007 | See Source »

More than 400 farms were affected in less than a week in the Foot-and-Mouth Outbreak of 1967 - the worst outbreak of the disease in Britain until the infamous 2001 epidemic. The virus that caused the outbreak - later termed 01 BFS67 - was isolated, and a sample sent to a...

Author: /time Magazine | Title: Brits Rush to Contain Foot-and-Mouth | 8/6/2007 | See Source »

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