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...ratings agencies themselves - Moody's, Standard & Poor's and Fitch - have nowhere to hide. Their CEOs took a royal lashing from Congress in October, and in April new regulations will go into effect, largely to address what is often painted as the Achilles heel of the ratings system: companies typically pay to have their own debt rated, therefore creating a massive conflict of interest for the ratings agencies, which want to hold onto that business. (See "How to Know When the Economy Is Turning Up".) Favorably rating structured finance products - including Frankenstein creations like synthetic collateralized debt obligations - became...

Author: /time Magazine | Title: How to Fix the Credit-Ratings Agencies | 3/23/2009 | See Source »

...near term, the Nano will have little effect on Tata Motors' revenue, adding just 3% to sales, analysts estimate. It will have even less impact on the company's ailing bottom line, because the Nano's profit margin is tiny, says Vaishali Jajoo, a senior automotive-research analyst at Angel Broking, an investment firm in Mumbai. "It will take at least four to five years to break even" and recoup the company's development costs, she says. There's more profit to be made from fully equipped Nanos with air-conditioning, power windows and upholstered seats, which cost about...

Author: /time Magazine | Title: The World's Cheapest Car Debuts in India | 3/23/2009 | See Source »

...What effect do newspaper closings really have on a town? Or a nation? Depending on a person's reading habits, the answers to these questions range from "It's the death of democracy!" to "Newspapers? What newspapers?" But with the demise of two major metropolitan dailies, the 149-year-old Rocky Mountain News and the almost equally venerable 145-year-old Seattle Post-Intelligencer in the last month alone, the issue is becoming a matter of practical rather than just theoretical concern. (See the 10 Most Endangered Newspapers in America...

Author: /time Magazine | Title: What Happens When a Town Loses Its Newspaper? | 3/22/2009 | See Source »

While Schulhofer-Wohl is at pains to point out that the study is not definitive and took place during what was an atypical election year, he also said that he and Garrido controlled for the Obama effect. "To the extent that we can extrapolate, we can say that local coverage is something the newspapers uniquely provide," he says, "and when people don't have it, they're much less engaged...

Author: /time Magazine | Title: What Happens When a Town Loses Its Newspaper? | 3/22/2009 | See Source »

...first scene, a student passionately refuses to define his ethnicity in a classic “checkbox” dilemma. At stake is a $12,000 scholarship offered only to minority students, but Patrick (Victor Rasuk) does not identify with his Puerto Rican roots on principle. The desired effect is admiration for his idealism, but a low-income college student turning down thousands of dollars essentially because he “hasn’t even been to Puerto Rico” smacks of pretension. His feeble arguments against accepting the money sound especially forced when a financial aid snafu...

Author: By Charleton A. Lamb, CRIMSON STAFF WRITER | Title: Spinning Into Butter | 3/20/2009 | See Source »

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