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...question facing Japan now, however - and the issue that should dominate elections to the lower house of the Diet, which could come as early as May and in which the ruling Liberal Democratic Party looks vulnerable - is whether stability is enough. The nation faces enormous challenges: a rapidly aging population, the rise of China as a regional superpower and the breakdown of the economic system responsible for Japan's postwar economic success, as international trade collapses and with it Japan's markets for its goods. (See pictures of Japan and the world...

Author: /time Magazine | Title: The Lessons From Japan | 3/12/2009 | See Source »

...Deposit Insurance Corporation (FDIC) up to $100,000 before the crisis, and the banks paid for that insurance (though not in full, given that FDIC coverage has been raised to $250,000 and seems effectively without limit at bigger banks) and passed the cost on in the form of lower interest rates than on, say, an uninsured money-market account. That, plus the fear that panicked depositors could start a devastating run on the banking system, explains why we're going to continue to be protected. (See the worst business deals...

Author: /time Magazine | Title: The Great Bond Bailout | 3/12/2009 | See Source »

...victims of Bernard Madoff were looking for catharsis in the court of U.S. District Judge Denny Chin, they got nothing close to it. Several of them had gathered in the large, packed courtroom in Lower Manhattan for Madoff's hearing Thursday morning, but Chin issued instructions that victims could speak only if they wanted to object to Madoff's pleading guilty to 11 counts of fraud. (Watch the video of Madoff pleads guilty...

Author: /time Magazine | Title: The Madoff Hearing: A Guilty Plea, but No Catharsis | 3/12/2009 | See Source »

...solutions also include a strategy for energy abundance that would lower energy costs by exploring for more domestic oil and natural gas, as well as investing in sources of affordable energy for the future, including clean coal, renewable fuels, wind and nuclear. We also call for the abolition of capital-gains taxes, which would immediately add value to the personal portfolios of every American and bring relief to anyone saving to retire, buy a home or go to college. This is the type of vivid pro-growth, pro-savings and pro-investment strategy that's needed to create jobs...

Author: /time Magazine | Title: The Trouble with Obama's New Deal | 3/12/2009 | See Source »

...Presidential budgets are traditionally a first offer in what has to be one of the highest-stakes negotiations in the world. Obama fully expects to not get everything he wants - his proposal to lower the rate of tax deductions for the wealthy looks to be dead on arrival - just as many moderates will likely have to hold their nose to vote for it. And now that they have the country's financial woes laid out before them, next year they are hoping to take out the knives. "At least this way people see the magnitude of the problem," says Representative...

Author: /time Magazine | Title: Can Obama Keep Moderate Dems in Line on His Budget? | 3/11/2009 | See Source »

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