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It was a fitting end to what has been a remarkably bubbly period for London. Over the past decade and a half, ever since its last protracted downturn, the British capital has transformed itself into Europe's indispensable financial center. Leaving Frankfurt and Paris in the dust and encouraged by...

Author: /time Magazine | Title: London's Gathering Storm | 10/9/2008 | See Source »

But now the world is in the grips of a perilous market crunch, the boom is over and tough times loom. The U.K.'s FTSE-100 stock index has nosedived in recent days and is down about 35% in the past year. Three famous British banks have already imploded - Northern...

Author: /time Magazine | Title: London's Gathering Storm | 10/9/2008 | See Source »

Financial panics--short-term, acute market upheavals that often coincide with long-term recessions--were common as the U.S. economy developed. There was the Panic of 1857 (prompted by railroad-bond defaults), the Panic of 1873 (sparked by a stock crash in Vienna) and the Panic of 1907, which started...

Author: /time Magazine | Title: The Moment | 10/9/2008 | See Source »

But even Paulson's team of whiz kids is struggling to keep up with the biggest financial crisis the U.S. has faced in more than 75 years. Kashkari must quickly figure out how to spend the first chunk of the $700 billion to maximum effect. He's looking at devices...

Author: /time Magazine | Title: Whiz Kid, Hot Seat | 10/9/2008 | See Source »

Why? Practice, for one. "We never had a housing crisis," says Pittsburgh's controller, Michael Lamb. "We already weathered that storm." Foreclosures declined 20% for two months compared with a year ago. Home prices are relatively steady. When the economy began to pick up steam again after 2003, Pittsburgh was...

Author: /time Magazine | Title: Finding One Economic Bright Spot on Main Street | 10/9/2008 | See Source »

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