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...restored and the economy then has too much liquidity. By making money available to the banks essentially for free, the Fed does not guarantee that the banks will lend out the money to businesses. There is no motivation to lend money at low rates when capital preservation (i.e., lack of confidence) is still a leading issue. Rates may be low, but the banks are not going to offer these rates to the individuals and industries that can make the most productive use of them - at least not until confidence returns. (See pictures of the recession...

Author: /time Magazine | Title: Fighting the Last Depression: The Fed's Policy Errors | 12/30/2008 | See Source »

While studying cigarette smokers who were trying to quit in the 1970s, Marlatt discovered that people who considered the act of smoking a single cigarette after their quit date to be a complete defeat and evidence of an innate and permanent lack of willpower were much more likely to let a momentary lapse become a full-blown relapse. That was the start of Marlatt's work on AVE. Since then, he has become one of the world's leading authorities on preventing relapse. (See photos of vintage cigarette...

Author: /time Magazine | Title: Why Falling Off the Wagon Isn't Fatal | 12/30/2008 | See Source »

...Treasury and Federal Reserve have unclean hands as well. Each of the car companies had adequate capital entering the fall, but when Treasury and the Fed "brought down the house" by letting Lehman Brothers fail, worldwide credit markets froze, preventing Americans from buying cars. Financial markets and the lack of available consumer credit - not a lack of appealing car designs - are the reasons for this crisis, and piling the blame on Detroit is simply not balanced. Steven M. Friedman, NEW YORK CITY...

Author: /time Magazine | Title: The Road to Mumbai's Tragedy | 12/29/2008 | See Source »

...crippling legacy that is proving hard to unlearn. Many Cabinet ministers still sign off on minutiae like restocking their office supplies, while the lack of digitization in some government bureaus is almost Monty Python-esque. In Diyala, the governorate's billion-dollar budget (the amount is cumulative because the budget has not been executed over three fiscal years) was being administered by a single accountant who had "a pencil, an eraser and a huge ledger," says Hunt...

Author: /time Magazine | Title: Mismanaging Iraq: No Cash to Carry | 12/29/2008 | See Source »

Exactly how a lack of sleep is feeding plaque in the heart arteries isn't yet clear, but one explanation may involve inflammation. Too little sleep can raise cortisol levels, which fuels inflammation that can destabilize plaques. Once these deposits rupture, they can block vessels in the heart or brain, causing a heart attack or stroke. While the Chicago team did not track levels of cortisol to test this theory, future studies might...

Author: /time Magazine | Title: Lack of Sleep Linked to Heart Problems | 12/23/2008 | See Source »

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