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...Wary sovereign wealth funds from Arab countries aren't likely to rush in to buy the assets of Western financial companies just yet, according to Sfakianakis. Some have already been burned, like the Kuwait Investment Authority, which bought Merrill Lynch shares worth billions earlier this year only to see the stock plummet in recent months. So for now, Arab investors are likely to refocus on infrastructure projects in their own countries that create real value and services for their economies, which are bound to keep growing even in the midst of a Western financial crisis...

Author: /time Magazine | Title: The Slump Hits the Gulf: No More Palm Islands? | 9/17/2008 | See Source »

...Kuttner may be right about the conflicts, but it's awfully hard to see how they brought on the current mess. In fact, Bank of America's takeover of Merrill Lynch and JP Morgan Chase's of Bear Stearns underscored a truth that was already becoming apparent on Wall Street - super-banks (more commonly known as universal banks) are, for all their flaws, a lot more stable and secure than un-super investment banks...

Author: /time Magazine | Title: While the Regulators Fiddled ... | 9/17/2008 | See Source »

...more than $100,000 in deposits at a single bank, well, congratulations. But you probably want to spread it around. Sometimes people wind up over the FDIC limit simply because banks merge. Bank of America, to take a prime example, started its acquisition binge long before Countrywide and Merrill Lynch. Inertia prevents plenty of people from opening up new accounts elsewhere. Now might be a good time to do that...

Author: /time Magazine | Title: Wall Street's Bomb: What's the Fallout for You? | 9/16/2008 | See Source »

With each writeoff, outfits such as Merrill Lynch tried to tell us that the crisis was over when in fact each writeoff was exacerbating the situation. If they were writing down the value of their subprime related investments and raising capital, then didn't everyone have to do the same? And once that happened, the market for this stuff would get even thinner, requiring a spiral of writedowns. It has become a field day for short sellers, who are picking off the undercapitalized financial outfits...

Author: /time Magazine | Title: Getting Suckered by Wall Street — Again | 9/16/2008 | See Source »

...clearly, the financial sector in the U.S. is facing a huge crisis. When you have two big companies like Bear Stearns and Lehman vanish, and Merrill Lynch being absorbed, that tells you a lot about the difficulties being faced by the financial sector...

Author: /time Magazine | Title: Saudi Billionaire to Wall Street: See You Later | 9/16/2008 | See Source »

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