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Word: creditably (lookup in dictionary) (lookup stats)
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...Bear Stearns careened toward its eventual fire sale to JPMorgan Chase last weekend, the cost of protecting its debt, through an instrument called a credit default swap, began to rise rapidly as investors feared that Bear would not be good for the money it promised on its bonds. Not familiar with credit default swaps? Well, we didn't know much about collateralized debt obligations (CDOs) either - until they began to undermine the economy. Credit default swaps, once an obscure financial instrument for banks and bondholders, could soon become the eye of the credit hurricane...

Author: /time Magazine | Title: Credit Default Swaps: The Next Crisis? | 3/17/2008 | See Source »

...trillion mortgage market and $4.4 trillion U.S. treasuries market, notes Harvey Miller, senior partner at Weil, Gotshal & Manges. "It could be another - I hate to use the expression - nail in the coffin," said Miller, when referring to how this troubled CDS market could impact the country's credit crisis...

Author: /time Magazine | Title: Credit Default Swaps: The Next Crisis? | 3/17/2008 | See Source »

...Credit default swaps are insurance-like contracts that promise to cover losses on certain securities in the event of a default. They typically apply to municipal bonds, corporate debt and mortgage securities and are sold by banks, hedge funds and others. The buyer of the credit default insurance pays premiums over a period of time in return for peace of mind, knowing that losses will be covered if a default happens. It's supposed to work similarly to someone taking out home insurance to protect against losses from fire and theft...

Author: /time Magazine | Title: Credit Default Swaps: The Next Crisis? | 3/17/2008 | See Source »

...excessive appreciation but rather a form of normalization and adjustment. However, though the continuing weakness of the dollar stems from America's subprime crisis and is beyond Tokyo's effective control, its consequences on Japan's economy will be significant. Says Stuart Giles, director for Global Coverage Group at Credit Suisse Securities: "The prospect of Japan falling into a recessionary period is quite high, and the stronger the yen, the higher this becomes."With reporting by Yuki...

Author: /time Magazine | Title: Japan's Strong Yen Problem | 3/14/2008 | See Source »

...hundreds of thousands have been killed in Darfur, Kenya has been destabilized and the U.S. would not fund the distribution of condoms as the cheapest way to fight AIDS? Most of the poverty-fighting in Africa has been done by private citizens or organizations for which Bush cannot take credit. Later in the article, Geldof got to the real reason the U.S. is interested in Africa: "It's a continent of 900 million potential producers and consumers ... the continent America must befriend, if only out of self-interest." The U.S. wants to exploit Africa, especially for its oil. Christine Halpin...

Author: /time Magazine | Title: Inbox | 3/14/2008 | See Source »

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