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...which expired in March, is a remnant of former Prime Minister Junichiro Koizumi's era of reforms in the late 1990s and early 2000s, when the government recapitalized and even nationalized some of its major banks after real estate and stock-market bubbles burst. The government says it currently plans to take a localized approach to intervention to make sure weaknesses it sees chiefly in regional banks don't develop into a systemic infection. Japan's regional banks don't appear to be facing an immediate crisis, say economists, but the government wants to be prepared. "It's a safety...

Author: /time Magazine | Title: Japan Moves to Protect its Financial System | 10/16/2008 | See Source »

...could be done to the banking system if real estate developers and owners began failing in large numbers. New City Residence Investment Corp. became the first REIT to go under since stocks of property trusts were first allowed to trade publicly on the Tokyo Stock Exchange in 2001. "The major REIT failure last week has affected the regional banks' balance sheets," says Shirakawa, adding that the trusts could be bellwethers signaling trouble for the real estate sector at large. "Property cash flows and the general economy are weakening. Banks have tightened their credit policy and some REITs cannot refinance themselves...

Author: /time Magazine | Title: Japan Moves to Protect its Financial System | 10/16/2008 | See Source »

...Residents of the county don't have to look far for the reason. The bursting of Spain's real estate bubble sent several major developers into bankruptcy and halted construction across the country. The number of houses built in 2008 is expected to fall by 70% from 2007. That's also fueling unemployment, which jumped by almost a third in September to reach 11.3%, Spain's highest rate since...

Author: /time Magazine | Title: Now the Real Pain Begins | 10/16/2008 | See Source »

...Senator delivered to a state last year was $16 million. "This is an election about whether or not we want Kentucky to go back to ... the back row, to go back to being a small state with little or no influence, or whether we still want to be a major player," McConnell said at a recent campaign stop...

Author: /time Magazine | Title: The Democrats Drive for 60 in the Senate | 10/16/2008 | See Source »

Isaiah Stotler spent seven months of his 18th year in the reservation jail for a variety of offenses tied to his drinking. "I had a major problem with being told what to do," he admits, "but I finally swallowed it." He cut his drinking to an occasional beer, qualified for college by passing a ged test and enrolled. "My record says I'm a drug dealer and gangbanger," he says. "But my transcript says that I'm getting all A's. I proved that people can change...

Author: /time Magazine | Title: Postcard from Chief Dull Knife College | 10/16/2008 | See Source »

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