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...That, of course, is bad news for the U.S., but it also means the one-two punch of the financial crisis and possible recession could mete out pain around the globe. "Stabilization of the financial markets is a critical first step," said U.S. Fed Chairman Ben Bernanke Wednesday. "But even if they stabilize as we hope they will, broader economic recovery will not happen right away...

Author: /time Magazine | Title: Recession Fears Drive World Markets Starkly Downward | 10/16/2008 | See Source »

...Ben Bernanke, Bush Time of speech 12:30 p.m. 2:35 p.m. Close...

Author: /time Magazine | Title: The World | 10/16/2008 | See Source »

...round, to buy toxic mortgage-related assets from the banks. The bank bailout will be funded out of that budget, and the Treasury still plans to start buying troubled assets in the next month or so. But that wasn't soon enough for worried investors or for Fed Chairman Ben Bernanke, who according to inside reports had been advocating for a recapitalization for months. Money flowed out of the stock market, including that of many large hedge funds. Some $2 trillion in market value disappeared in a week. "It was tunnel vision," says Republican Congressman Spencer Bachus, ranking member...

Author: /time Magazine | Title: The Big Bank Bailout: Are You Next? | 10/16/2008 | See Source »

...banking system undergoes its most wrenching overhaul in 70 years, Bair, chairwoman of the FDIC, has become the voice of ordinary passbook holders. Bair was front and center with Treasury Secretary Hank Paulson and Fed boss Ben Bernanke when they announced plans to recapitalize the U.S. banking industry. But the three aren't always in perfect alignment. As guarantor of Americans' $4.5 trillion in deposits spread around in some 8,500 U.S. banks, Bair is trying to balance both the needs of depositors like the storied Mrs. Lobsiger and those of big-name players like Citigroup who help generate much...

Author: /time Magazine | Title: The FDIC's Boss: Sheila Bair, America's Passbook Protector | 10/16/2008 | See Source »

...crisis we face today are significant. But the most important and consequential differences lie in the realms of ideas and attitudes, especially regarding the role of government. Consider what might be called "the tale of two Secretaries." Treasury Secretary Hank Paulson (along with Federal Reserve Chairman Ben Bernanke, who presides over an immeasurably more potent Federal Reserve system than existed in 1929) has acted with vigor to bring the full powers of the Federal Government to bear in the current crisis. In dramatic contrast, when Herbert Hoover asked his Secretary of the Treasury, Andrew Mellon, for advice...

Author: /time Magazine | Title: A Historian on the Lessons of the Depression | 10/16/2008 | See Source »

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