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...Goldman has repeatedly declared that its exposure to AIG was "immaterial" and fully hedged. But some rivals point to the fact that Goldman had uncharacteristically piled into contracts with a single counterparty. "I am shocked that Goldman had this much exposure [with AIG]," says an analyst at a competing bank. "This was a major failing, but they got bailed...

Author: /time Magazine | Title: How AIG Became Too Big to Fail | 3/19/2009 | See Source »

Doing What Works There is growing evidence that comprehensive sexuality programs like the ones Jordan teaches can be more effective than abstinence-only curriculums at persuading teens to behave more responsibly. Douglas Kirby, a neutral analyst who has studied sex-education programs for more than three decades, says most evaluations of abstinence-only programs have found "no impact on sexual behavior." However, nearly half the comprehensive programs that have been studied reduced sexual risk in three areas: delaying the age at which teens first have sex, reducing the number of sexual partners they have and increasing their use of condoms...

Author: /time Magazine | Title: How to Bring An End to the War Over Sex Ed | 3/19/2009 | See Source »

...John Moody became the first financial analyst to assign letter grades to railroad bonds, giving investors an easier way to evaluate the rail companies' debt. It was the beginning of one of the most powerful forces in modern capitalism. Today a small club of bond-rating agencies, led by Moody's, Standard & Poor's and Fitch, wields enormous power, sending investors scrambling simply by changing the ratings that the firms assign to everything from Ireland's sovereign debt to General Electric's IOUs. They are pilloried for having wildly overestimated the quality of mortgage-related securities...

Author: /time Magazine | Title: A Brief History Of: Ratings Agencies | 3/19/2009 | See Source »

...issue for Russia's officer corps since October, when Defense Minister Anatoly Serdyukov announced that the country's top-heavy army will be reduced, specifically cutting 200,000 of its 350,000 officers. "The structure of Russia's armed forces is totally abnormal," says Alexander Golts, an independent military analyst. "We have one officer for every two privates." The overall numbers of the armed forces will drop from 1.13 million to 1 million. The remaining soldiers, the reasoning goes, will have access to better and more up-to-date equipment. Supply and command problems were clearly evident in last August...

Author: /time Magazine | Title: Medvedev Uses NATO Threat to Reform Military | 3/19/2009 | See Source »

...Freddie's portfolio of [mortgage] insurance is more risky than the market was led to believe," says Paul Miller, an analyst at FBR Capital Markets. Sister company Fannie Mae lost even more last year, with $58.7 billion of red ink. But Fannie was better capitalized than Freddie going into the credit crunch. So even though Freddie by many measures is smaller than Fannie, the problems at Freddie will probably end up costing more...

Author: /time Magazine | Title: Freddie Mac: Government's New Black Hole? | 3/17/2009 | See Source »

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