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...dollar is getting from an unlikely quarter: global hedge funds and other nonbank financial entities. This shadow banking system has borrowed trillions of dollars to leverage its investments. But the crisis has triggered massive early loan repayments, and because these loans must be repaid in the U.S. currency, demand for the dollar has increased, driving up its value. It's not just hedge funds that are affected. Foreign banks, which hold $12 trillion in dollar assets and liabilities, are also in the process of deleveraging...

Author: /time Magazine | Title: Why the Buck Has Pluck | 10/16/2008 | See Source »

...State capitalism is hardly foolproof, of course. In nations with less sophisticated economic management than a place like Dubai, state control could simply revert to cronyism. Because they still rely on trade, the state capitalists are not immune to a global meltdown. Indeed, decreased Western consumer demand will dent China's economy as well as that of any that relies on exports. But the free-market autocrats stand in far better shape than the rest of the world. With their massive cash reserves, current-account surpluses and, often, capital controls, countries like China can better weather a downturn (China probably...

Author: /time Magazine | Title: Central Command | 10/16/2008 | See Source »

...hardly alone, which is bad news for the world's oceans. Partly because of the rising global demand for sushi, we're fast fishing out our seas, with some researchers estimating that if we don't change the way we harvest the oceans, all the commercial fisheries in the world could collapse as early as 2048. That could mean no more California rolls in your local supermarket...

Author: /time Magazine | Title: Sustainable Sushi | 10/16/2008 | See Source »

...cities are meant to solve pressing economic and demographic problems: with 60% of its population under the age of 25, Saudi Arabia needs to create millions of jobs and homes for young people who will come of age in the next five years. This "youth bulge" will create a demand for 6 million residential units in the next 12 years; that's a million more units than were built in the past 60 years. "When you have demand on that scale, you can't think small," says Fawaz al-Alamy, who advises King Abdullah on economic issues. "Big problems need...

Author: /time Magazine | Title: The Massive Master Plan | 10/16/2008 | See Source »

...Demand-Side Problem...

Author: /time Magazine | Title: The Big Bank Bailout: Are You Next? | 10/16/2008 | See Source »

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