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...Europe's Stability and Growth Pact set up in 1997 amid German concerns over budgetary discipline in countries about to join the euro zone. Designed to discourage governments from destabilizing the euro zone by borrowing too much, the rules limit national deficits to no more than 3% of gross domestic product. Countries that go over that limit can face fines. (See pictures of Europe in peril...

Author: /time Magazine | Title: Europe's Twin Messages: Spend! Stop Spending! | 2/24/2009 | See Source »

...story in the book where the woman has sex in a bar bathroom. She absolutely knew that this was a crazy idea, the bathroom was dirty, it was not a nice place, she didn't even really want to do it. It was a horrible idea - and gross - but she's willing to confess that she did it. So you don't blame her for it, 'cause she says, "O.K., I made a mistake." So yes, women are at fault as much as men are at fault, but in this particular book - and the next one will be different...

Author: /time Magazine | Title: What Makes a Bad Boyfriend? | 2/23/2009 | See Source »

Under the new plan, servicers, the companies that collect mortgage checks, will be paid $1,000 every time they cut the interest rate on a loan to reduce the monthly payment to no more than 38% of a borrower's gross income. The government will split the cost of reducing the debt-to-income ratio further than that, down to 31%. Both servicers and borrowers will be paid up to $1,000 a year (for three and five years, respectively) for keeping the loan current...

Author: /time Magazine | Title: Will President Obama's New Housing Plan Work? | 2/19/2009 | See Source »

...avoiding a deficit this year of about $1.5 trillion, including the bank bailout and the stimulus bill. They were prepared to swim even deeper into the red next year, expanding Obama's initiatives on renewable energy and high-speed rail lines and raising the deficit to 10% of gross domestic product, the highest figure since World War II. But assuming the economy has begun to turn around, the two-year spending splurge would be followed by a steady return to fiscal sanity: Obama wanted to bring the deficit down to 3% of GDP--still a whopping $546 billion...

Author: /time Magazine | Title: After the Stimulus, Can Obama Tame the Deficit? | 2/19/2009 | See Source »

...around the massive surge in costs that comes with rising medical-care prices and the aging of the baby boomers. "If health-care costs grow at the same rate over the next four decades as they did over the past four decades, you're up to 20% of gross domestic product by 2050," he claims. Translation: left unchecked, the government won't have money to spend on anything but health care...

Author: /time Magazine | Title: After the Stimulus, Can Obama Tame the Deficit? | 2/19/2009 | See Source »

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