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...Clinton years were the really interesting ones. In the aftermath of the savings and loan collapse and a banking-industry near-miss there was a flurry of activity aimed at keeping banks healthy, not by shoving them back into their New Deal box but by reasserting their central role in the financial system. Glass-Steagall repeal can best be understood as part of this effort. So was 1994 legislation allowing interstate branching. This was a bipartisan movement: The Gramm-Leach-Bliley legislation passed the Senate 90-8 (Joe Biden was for it; John McCain didn't vote, but had supported...

Author: /time Magazine | Title: While the Regulators Fiddled ... | 9/17/2008 | See Source »

...France with the U.S. was also both legitimate and necessary. Does this reconciliation necessarily imply France's full return to NATO and the reinforcement of France's military presence in Afghanistan? The answer is yes, but with conditions. The blood tax paid by French soldiers accords France a central role in redefining the common strategy in Afghanistan, where the Western world cannot afford a defeat. Sarkozy's tougher tone toward Tehran, as well as his efforts to secure a climate of trust with Israel, can also be ranked as successes. Only hard-nosed diplomacy constitutes an alternative...

Author: /time Magazine | Title: Nicolas Sarkozy: At Home Abroad | 9/17/2008 | See Source »

...renewed sectarian strife is also very real: a tenuous truce between Iraq's various communities will be tested early next month, when the U.S. transfers command authority over the so-called Awakening or Sahwa councils (the Sunni tribal groups that fought al-Qaeda) to the predominantly Shi'ite central government. Neither side trusts the other. Tensions between Arabs and Kurds are also on the rise in several northern districts of Iraq, as well as between al-Maliki and his Kurdish coalition partners in Baghdad. Provincial elections are to be held by the end of this year, but they cannot...

Author: /time Magazine | Title: General Petraeus' Farewell: What He Leaves Behind in Iraq | 9/16/2008 | See Source »

...Health Ministry announced a nationwide investigation into how the milk powder was contaminated on September 12. Police in central Hebei province have detained 22 people and arrested four, including two brothers who ran a milk collection station. They have been accused of watering down the milk they purchased from local farmers and adding melamine to conceal the dilution, the state-run Xinhua News Service reported...

Author: /time Magazine | Title: Tainted-Baby-Milk Scandal in China | 9/16/2008 | See Source »

...firecrackers that crackled in the plaza of the central city of Morelia late Monday in celebration of Mexico's independence day served as a prelude to a nastier set of explosions. When the smoke cleared, more than 100 revelers lay bleeding on the paving stones. The clearly stunned state governor Leonel Godoy, who had moments earlier been presiding over the festivities, declared the attack the work of Mexico's increasingly violent drug gangs. By Tuesday, as annual parades marched somberly through the Mexican cities, at least eight victims of the blast had died from their wounds, and several more were...

Author: /time Magazine | Title: Terror Bloodies Mexico Celebrations | 9/16/2008 | See Source »

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