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...year of reckoning for GM and the rest of the domestic auto industry, if not the economy as a whole. The GM crisis is raising once again the issue of how far the government should go in rescuing banks, insurance companies, mortgage holders, credit-card issuers and now carmakers. GM has no doubts about it. "Immediate federal funding is essential in order for the U.S. automotive industry to weather this downturn," GM president Fritz Henderson admitted to investors during a conference call in which GM announced a third-quarter loss of $2.5 billion...

Author: /time Magazine | Title: Is General Motors Worth Saving? | 11/13/2008 | See Source »

...receive a capital infusion from the $700 billion bailout fund. Nearly a third of the fund has already been spent, and Treasury Secretary Henry Paulson said on Wednesday that he would like to use some of the remaining money to support the ailing market for such consumer debts as credit cards and college loans, as well as to prevent foreclosures. That leaves a dwindling fund left for the hundreds of banks still hoping to get TARP funds. Analysts and investors are growing concerned that some banks will be left...

Author: /time Magazine | Title: Banks Left Out of TARP Bailout Could Face Extinction | 11/13/2008 | See Source »

Shortly after the turn of the century, though, the housing boom began to spin out of control. As incomes and employment in Ireland rose, cheap credit and tax incentives fueled a buying frenzy that pushed up both prices and housing stock: the cost of an average house rose almost three-fold in the decade through 2006, while some 40% of the country's housing was built in the last decade, according to Brian Devine, an economist at Dublin-based stockbrokers NCB. At the Grange, a swish 11-acre (4.5 ha) development in Dublin, realtors sold 15 luxury apartments a week...

Author: /time Magazine | Title: Ireland's Economy: Celtic Crunch Time | 11/12/2008 | See Source »

...government is also keeping a close eye on the country's banks. Though heavily exposed to the domestic property market, they haven't yet needed the kind of cash injections seen elsewhere in Europe and the U.S. But with credit markets freezing over, the government has guaranteed deposits and debts for a handful of big lenders, amounting to well over $500 billion in liabilities, more than twice the country's GDP. The next step will be to ensure credit gets to Ireland's good-quality businesses over the next year or two, says Davy's White. On Grafton Street, Weir...

Author: /time Magazine | Title: Ireland's Economy: Celtic Crunch Time | 11/12/2008 | See Source »

...Palin may have spent nearly $200,000 on clothes for herself and her family. One aide described the behavior as “Wasilla hillbillies looting Neiman Marcus from coast to coast.” The governor’s irresponsible shopping spree highlighted the risks of putting a credit card in the hands of the wrong woman—and did little to dispel the preconception that all women are born shopaholics...

Author: By Claire M. Guehenno | Title: Forgetting Sarah Palin | 11/12/2008 | See Source »

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