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...Hank” Paulson, proved unable to bring lasting calm to the market: Neither lower interest rates, nor greatly expanded liquidity helped thaw frozen credit markets. Even after brokered shotgun weddings like those of Merrill Lynch and Bank of America or Bear Stearns and JP Morgan Chase, what Professor Kenneth Rogoff once called the “flagship” American sector, the financial services industry, seems to have no bottom...

Author: By Pierpaolo Barbieri | Title: The Bubble Doom | 9/21/2008 | See Source »

...once burned, twice shy" isn't an old Chinese proverb, it probably should be. As Gao Xiqing, the chief investment officer of China's $200 billion sovereign wealth fund, meets in New York City this week with Morgan Stanley CEO John Mack to discuss increasing the Chinese government's stake in the venerable - and flailing - investment bank, he bears an obvious burden. Last December, the CIC (the China Investment Corp.) invested $5 billion for a 9.9% stake in Morgan Stanley (for which the bank must pay CIC a 9% annual dividend until 2010). On paper, that investment is now down...

Author: /time Magazine | Title: Why China Won't Come to the Rescue | 9/19/2008 | See Source »

...aimed at supporting China's leading financial institutions at a time of global turmoil," says Jing Ulrich, chairman of China securities at JPMorgan in Hong Kong. It's another way of saying to CIC's Gao Xiqing, If you come home from New York having increased our stake in Morgan Stanley, it had better be the sweetest deal anyone in Beijing has ever seen...

Author: /time Magazine | Title: Why China Won't Come to the Rescue | 9/19/2008 | See Source »

Weeks after the violence surrounding the presidential election in Zimbabwe has subsided, Morgan Tsvangirai and Robert Mugabe have finally reached a power-sharing agreement. In this arrangement, Tsvangirai becomes prime minister and chairman of the council of ministers, while Mugabe remains president, chairman of the cabinet, and leader of the armed forces. Despite this political solution, economic troubles remain. In order to solve them, the United States, though perhaps wary of the uncertainty of this political union, must act decisively by supporting foreign aid negotiations...

Author: By Alexander R. Konrad | Title: More than Hope in Zimbabwe | 9/18/2008 | See Source »

...shotgun marriage between Zimbabwe's government and opposition was never going to be easy, but it could falter at the first hurdle. Despite signing a power-sharing agreement on Monday, President Robert Mugabe and his arch-rival and new Prime Minister Morgan Tsvangirai have failed to agree on who will control which portfolios in a new cabinet. A meeting between the two men on Thursday aimed at resolving the issue broke up without agreement, as reports began to trickle in of violence breaking out in different parts of the country between supporters of Mugabe's Zanu-PF and the opposition...

Author: /time Magazine | Title: Bumpy Road for Zimbabwe's Power-Sharing Deal | 9/18/2008 | See Source »

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