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...billion to help institutions in distress is also potent proof of the crisis’ gravity. Betting on the decline of selected financial firms’ stocks, known in finance as “short-selling,” is now banned in the United States and Britain. According to South China Morning Post, Chinese banks were recently told to suspend lending to U.S. financial institutions. The weak dollar caused import prices to surge by 20 percent from last year, which should have helped local enterprises; it has provided an advantage to some businesses but it also increased prices...

Author: By Jan Zilinsky | Title: Lessons from the Financial Crisis | 10/7/2008 | See Source »

...billionaire tycoon-turned-P.M. was corrupt and manipulated a democratic system to entrench his own power. Thai courts have charged Thaksin with graft in several cases. On Oct. 6, an official from the British Home Office confirmed that Thaksin and his wife had applied for political asylum in Britain on the grounds that they will not receive fair trials back home...

Author: /time Magazine | Title: Thai Opposition Protests Heat Up | 10/7/2008 | See Source »

European bank stocks continued to take a beating on Tuesday following a series of ad hoc steps by national governments to try to shore up confidence in financial institutions. By the day's close, Britain's troubled HBOS was down 41.5%, and the Royal Bank of Scotland's shares had lost 39% of their value; Germany's Commerzbank fell 14%, and Deutsche Bank was down 8.9%. The pummeling followed a black Monday in which stock exchanges across Europe dropped as much as 9%, suggesting that the markets were casting a doleful eye on the $700 billion U.S. bailout package passed...

Author: /time Magazine | Title: Europe Struggles for a Response to the Bank Crisis | 10/7/2008 | See Source »

...between Saturday's rhetoric and Monday's reckoning was amply visible in advance. For all the brave-sounding statements about a common response at French President Nicolas Sarkozy's conclave on Saturday, he and Merkel, along with Prime Ministers Gordon Brown of Britain and Silvio Berlusconi of Italy, couldn't agree on substantial international measures to shore up Europe's beleaguered financial markets; they in fact had little standing to do so. By Sunday, the national governments in the 27-member E.U., including the 15 that use the euro currency, all seemed concerned first and foremost with the conditions...

Author: /time Magazine | Title: Europe Scrambles as the Credit Crisis Goes Global | 10/6/2008 | See Source »

...taking that same route Sunday, Austria said it would follow suit - making it the fourth E.U. nation to guarantee private savings, along with Greece. Denmark and Sweden also raised the limits on savings they would guarantee, and by Monday, even British Finance Minister Alistair Darling was giving signals that Britain too might swap its current $88,000-per-person savings guarantee for blanket protection...

Author: /time Magazine | Title: Europe Scrambles as the Credit Crisis Goes Global | 10/6/2008 | See Source »

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