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...from 8% to 7.5%, the lowest level since 1977. Instead of hoorays, though, the news was met with skepticism. The reason: many economists now doubt that further cuts in interest rates will give much of a boost to the economy, which was muddling along at only a .6% annual clip in the second quarter. Another sign of the economy's mixed prospects came with the release of the latest index of leading economic indicators, the government's chief forecasting gauge. The index rose by a sharp 1.1% in July, but that gain was balanced by a revision of June figures...

Author: /time Magazine | Title: Prime Cut: Rates drop, but to what avail? | 9/8/1986 | See Source »

...needs a swatch of imperiousness just to get through his work schedule. He renders his decisions at a tremendous clip, daily passing judgment on dozens of ideas for products ranging from rugs to umbrellas. He generally drafts the broad schemes for new wares, often leaving his staff to come up with many of the specific details, materials and manufacturing plans. "I really love the idea of dark paisley sheets," he announced at a meeting one day. When his designers scurried back into conclave with fabric samples, Lauren demanded, "No, no! I want them darker, darker, darker...

Author: /time Magazine | Title: Selling a Dream of Elegance and the Good Life | 9/1/1986 | See Source »

Hungary, though, is now at a crossroads, preparing for the inevitable end of the Kadar era even as some of the bloom has gone from its enviable economic achievements. The economy, which during the 1970s grew at a robust 4.5% annual clip, is now slumping, widening the gap between affluent and less fortunate Hungarians. Private and state-run companies are ringing up huge losses, and traditional export markets are shrinking. Says one Hungarian journalist: "The mood is more unsettled and apprehensive in this country than at any time since...

Author: /time Magazine | Title: Hungary Building Freedoms Out of Defeat | 8/11/1986 | See Source »

...they glide by. Here is a succession of odd dreams, bigger than life: a red fingernail the size of a mudguard, a slough of squirming orange spaghetti, a girl whose perfect, impersonal beauty has to advertise something other than herself, the black void of outer space, a paper clip, crinkled silver Mylar and bristling sheaves of fiber-optic cables and the Ford in your future...

Author: /time Magazine | Title: Art: Memories Scaled and Scrambled | 8/11/1986 | See Source »

TOTAL TRADE EMBARGO. This House-approved measure could clip the profits of white-owned businesses and apply marginal pressure on the government, while probably throwing blacks out of work on a significant scale -- particularly if mining of gold, coal and diamonds was seriously impeded. American exports to South Africa declined to $1.3 billion last year, while U.S. imports have remained fairly steady at slightly above $2 billion. A trade embargo would thus have little financial effect on the U.S. As for South Africa, it could probably evade export restrictions by shipping its goods through other countries. This would increase...

Author: /time Magazine | Title: Assessing the Impact of Sanctions | 8/4/1986 | See Source »

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