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...date, U.S. banks have admitted to $334 billion in losses and write-downs, and the final total will almost certainly be much higher. To compensate, they have managed to raise $235 billion in new capital. The trouble is that the net loss of $99 billion implies that they will need to shrink their balance sheets by 10 times that figure - almost a trillion dollars - to maintain a constant ratio between their assets and capital. That suggests a drastic reduction of credit, since a bank's assets are its loans. Fewer loans mean tighter business conditions on Main Street. Your local...

Author: /time Magazine | Title: The End of Prosperity? | 10/2/2008 | See Source »

...notion that Asia has somehow "decoupled" itself from the U.S. now seems fanciful. China and America have come so close to merging financially that we can almost speak of "Chimerica." When Fannie and Freddie were on the brink of collapse, many were surprised to learn that fully a fifth of China's currency reserves was composed of their bonds. Small wonder. Having spent much of the past decade intervening on currency markets to prevent the appreciation of its renminbi, China has accumulated a huge hoard of dollar-denominated bonds. No foreign nation stands to lose more from a U.S. financial...

Author: /time Magazine | Title: The End of Prosperity? | 10/2/2008 | See Source »

...cultures stretching from Greece to Egypt, more than a century after the bacillus responsible for the disease was first identified and decades after the first antibiotic treatments, TB continues to survive, even thrive, in ever more aggressive forms. In 2006, 9.2 million more people were diagnosed with the disease, almost exclusively in the developing world, and 1.7 million people died from it. More alarming is a growing subset of TB cases, estimated at half a million, that are resistant to more than one of the handful of anti-TB drugs. While they still make up only 5% of the total...

Author: /time Magazine | Title: Tuberculosis: An Ancient Disease Continues to Thrive | 10/2/2008 | See Source »

...Asia is somewhat better protected than other parts of the world against recession. For one thing, most Asian governments are in sound financial condition and can prime their economic pumps almost at will, says Song Seng Wun, regional economist at CIMB-GK Research in Singapore. "They all face the downturn with a few more bullets in their pocket than they had in the past," he says. The high growth rates of the past several years provide an additional buffer. With the exception of slow-growing Japan, which may already be in a recession, Asian countries will likely account...

Author: /time Magazine | Title: Asia's Good Times at Risk | 10/2/2008 | See Source »

...ultimately, a losing fight: Pearce won the primary with almost 70% of the vote in the very conservative Mesa senate district, and he is heavily favored to win the general election. But just as bitter has been the fight for the smaller prizes of key positions within the local branches of the state Republican Party...

Author: /time Magazine | Title: McCain's Republican Enemies in His Home State | 10/1/2008 | See Source »

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