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And even if a company were to fail outright, consumers are protected much in the way that routine bank deposits are guaranteed by the FDIC. Under a 40-year-old system, each state has an "Insurance Guarantee Fund" to which companies contribute that guarantees property, casualty, life and health claims...

Author: /time Magazine | Title: How Safe is Your Insurance Company? | 10/10/2008 | See Source »

The world's economists have been nearly unanimous in saying that only a coordinated, worldwide effort can stem the current credit crunch and companion market meltdown. Their proposed solutions include: cut interest rates, recapitalize the banks and insure deposits; get governments to step in and guarantee short-term interbank lending...

Author: /time Magazine | Title: Can the G-7 Save the World from Financial Chaos? | 10/10/2008 | See Source »

In the days since Congress passed a $700 billion bailout bill to get toxic assets off banks' balance sheets and inject companies with new capital, governmental intervention in the credit crisis has continued and even grown as other countries step up their own efforts to guarantee bank accounts and bolster...

Author: /time Magazine | Title: A Market Meltdown That Won't Stop: Is This Rational? | 10/9/2008 | See Source »

This institutional problem pales beside the political one: when crisis strikes, Europe almost never acts like a true union. After French President Nicolas Sarkozy summoned the leaders of Britain, Germany and Italy to Paris on Oct. 4, German Chancellor Angela Merkel coolly torpedoed his proposed $409 billion Europe-wide financial...

Author: /time Magazine | Title: Gloat at Your Peril | 10/9/2008 | See Source »

The passage of the deal is another case where a powerful ethnic lobby—perhaps along with some romantic notions about supporting the world’s most populous democracy—caused yet another foreign policy blunder. Since the Bush administration first negotiated the agreement in 2005, the...

Author: By Paras D. Bhayani | Title: Playing With Fire | 10/8/2008 | See Source »

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