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...growth of what's now often termed the shadow banking system of securitization and derivatives, which took over many of the responsibilities of banks but was not subjected to the same kind of risk controls or oversight. This process began in the 1970s, as the rigid New Deal approach of segmenting financial institutions into narrowly defined boxes began to crack under the pressure of inflation, globalization and floating exchange rates. The money market mutual fund, invented in 1971 as a way to get around federal limits on savings-account interest rates, was among the first of many innovations that undermined...

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

...Reagan administration sped this transformation, but the 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...

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

...your cover story you left out the perhaps most important alternative: that of a leader. The U.S. as sole remaining post-Cold War superpower needs all the international support it can get to successfully play that responsible role. A great deal was achieved during the Clinton Administration, but that was almost put to naught under George W. Bush. As macabre as this may sound: it was only "thanks" to 9/11 that the world at least halfheartedly rallied back around the U.S. Barack Obama as President has an important message for the world: "We are your leader of choice, not because...

Author: /time Magazine | Title: McCain: Temper of the Times | 9/17/2008 | See Source »

...college very briefly—Santa Monica College of Los Angeles. It’s beautiful, but we pretty much got signed to a record deal right out of high school, so I didn’t put in any real time going to college. And to be perfectly honest, at the time, I wasn’t really interested. I was playing in the band, we were on the verge of getting a record deal, and I was working for a record label. I was really kind of immersed in the world that I wanted to be immersed...

Author: By Frances Jin, CRIMSON STAFF WRITER | Title: 15 Q’s with Mike Einziger | 9/17/2008 | See Source »

...increase government regulation of the drug and insurance industries.) Obama has done this sort of thing too. In July, he accused McCain of supporting the foreign buyout of an American company that could lead to the loss of about 8,000 jobs in Wilmington, Ohio. McCain did support the deal, but the job loss comes many years later and was not anticipated at the time. That, however, is where the moral equivalency between these two campaigns ends...

Author: /time Magazine | Title: John McCain and the Lying Game | 9/17/2008 | See Source »

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