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...cardinal rules by failing to keep the total debt level below 40% of national income. Carl Emmerson, deputy director of the Institute for Fiscal Studies in London, estimates that Britain's budget deficit for the current fiscal year will likely grow from the government's planned 2.8% of GDP to about...

Author: /time Magazine | Title: The Economy's Perilous Waters | 10/15/2008 | See Source »

...Japan learned how to handle a financial crisis the hard way. In the 1990s, after stock and real estate bubbles imploded, the country experienced a financial debacle similar to the one facing the U.S. today. The result was the Lost Decade. Between 1992 and 2003, Japan's real GDP growth averaged less than 1% a year...

Author: /time Magazine | Title: Lessons From Asia's Last Meltdown: Act Fast | 10/10/2008 | See Source »

...seizure of its oversized banking sector. Prime Minister Geir Haarde went on television Monday night to warn his compatriots that "the Icelandic economy, in the worst case, could be sucked with the banks into the whirlpool, and the result could be bankruptcy." That's not just talk: Iceland's GDP amounts to less than one-tenth of the total assets of its three biggest banks, all of which are in trouble. British financial authorities warned on Tuesday that Icesave, a subsidiary of Landsbanki, Iceland's second biggest bank, might not be able to pay out the estimated $7.8 billion...

Author: /time Magazine | Title: Europe Struggles for a Response to the Bank Crisis | 10/7/2008 | See Source »

...Health care is perennially one of the most important issues in presidential campaigns. According to the Petrie-Flom center, Americans spend $2 trillion on health care annually, a cost that is expected to grow dramatically in the coming decades. “More than 15 percent of our GDP is spent on health care, so it is a problem with major impacts,” said Katherine E. Paras, a Petrie-Flom administrator who helped organize the debate...

Author: By Danielle Kim, CONTRIBUTING WRITER | Title: Economists Advising Presidential Candidates Clash on Health Care | 10/3/2008 | See Source »

...already getting hurt. New car sales - 80% of which are financed - are slowing. Tata Motors reported a 3% decline in sales in August compared with the year before, while Maruti Suzuki reported a 9% drop. Commerce and Industry Minister Kamal Nath has been warning publicly that the country's GDP growth will slow this year to between 7% and 8%, down from more than 9% last year...

Author: /time Magazine | Title: The Wages of Consumerism | 10/2/2008 | See Source »

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