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Banks and other financial institutions are in an even worse position: their debts are accumulating even faster. By 2007 the financial sector's debt was equivalent to 116% of GDP, compared with a mere 21% in 1980. And the assets the banks loaded up on have fallen even further in...

Author: /time Magazine | Title: The End of Prosperity? | 10/2/2008 | See Source »

This basic error, born of folly, ignorance and greed, is the biggest cause of the mess we are now in. It was compounded by other factors. A system of remunerating bankers with fat bonuses based on the volume of business done, irrespective of the quality and future profitability of that...

Author: /time Magazine | Title: Back to Reality | 10/1/2008 | See Source »

The body count is, to be sure, an astonishing one: in less than a year, three of the nation’s five independent investment banks are gone, and a major insurance company and two behemoth mortgage firms have been effectively nationalized.

Author: By Paras D. Bhayani, CRIMSON STAFF WRITER | Title: Wall Street Meltdown | 10/1/2008 | See Source »

Ohio Marcy Kaptur, Democratic Congresswoman from Toledo, says the crisis "is as big as it gets. I haven't seen this kind of reaction from constituents since the [savings and loan] crisis of the 1980s. I am getting thousands of letters, phone calls, e-mails and faxes. A handful of...

Author: /time Magazine | Title: Why Main Street Is Mad: Scenes from a Financial Crisis | 10/1/2008 | See Source »

Iowa Joyce Carle, 65, of Des Moines retired from the U.S. Postal Service after 25 years. But when the Paulson proposal came up, she immediately wrote a letter to the local paper to voice her opposition. "A $700 billion bailout I feel is going to my grandchildren. They're going...

Author: /time Magazine | Title: Why Main Street Is Mad: Scenes from a Financial Crisis | 10/1/2008 | See Source »

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