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...chart has two big peaks - the first is the rush of subprime resets that peaked in late 2007 and early 2008; the second is the upcoming wave of option ARMs, which don't hit their full reset stride until 2011. By the middle of next year, more then $10 billion worth of option ARMs will reset higher each month, according to data from mortgage tracker Loan Performance. That comes close to the figures we saw during subprime's height. (See the best business deals...

Author: /time Magazine | Title: How Big Is the Threat from Option ARMs? | 2/19/2010 | See Source »

...country's marquee bid is an order for 126 fighter planes, worth $10 billion - the single biggest tender in the world in the past 15 years. Six companies' jets are in the running: Boeing's F/A-18 E/F Super Hornet, Dassault Aviation's Rafale, Lockheed Martin's F-16, Russia's MiG-35, Saab's JAS 39 Gripen and the Eurofighter Typhoon from EADS, a six-nation European consortium. All of them sent teams of delegates to Defexpo. They hovered around their booths, giving impromptu presentations over free cappuccino to bureaucrats, army officers and local journalists. The bid is already...

Author: /time Magazine | Title: For the Arms Industry, India Is a Hot Market | 2/19/2010 | See Source »

...question left unanswered at Defexpo 2010 was whether a country in which one-third of the adults are illiterate and 43% of children are malnourished should spend so much on weapons. India's central government spent $4.5 billion on education in 2008 - about the same amount that it plans to spend on 197 new helicopters. A handful of protesters picketed outside the gates of the exhibition hall on opening day, but they drew little notice. India's attention is firmly focused on what a defense-company representative called the "quality gap" between its weapons and those of its neighbors, Pakistan...

Author: /time Magazine | Title: For the Arms Industry, India Is a Hot Market | 2/19/2010 | See Source »

...This month, the President also approved the sale of $6 billion worth of arms to Taiwan, which China considers part of its territory. That provoked further anger from Beijing. Three senior Chinese military officers were quoted in an official newspaper suggesting that the government should sell some U.S. Treasury bonds in retaliation...

Author: /time Magazine | Title: In China, Muted Reaction to Dalai Lama's Visit | 2/19/2010 | See Source »

...China's holdings of U.S. government bonds did drop by 4% to $755 billion, the U.S. Treasury Department reported this week, but those numbers are from December, before the recent downturn in ties. China's vast holdings of U.S. debt give it only limited leverage, because any partial sell-off would harm the value of its remaining U.S. assets. Dumping Treasuries would also undermine the American economy, further dampening the market for Chinese exports. So even as the U.S. and China find a growing number of issues over which to argue, their economic interdependence helps keep the disagreements from spiraling...

Author: /time Magazine | Title: In China, Muted Reaction to Dalai Lama's Visit | 2/19/2010 | See Source »

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