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...Uncle Sam Steps Back In The market lost faith in AIG too, but the government was forced to save it. A major reason is that AIG is one of the creators of the aforementioned credit-default swaps. What are those, you ask? They're pixie-dust securities that supposedly offer insurance against a company defaulting on its obligations. If you buy $10 million of GM bonds, for instance, you might hedge your bet by buying a $10 million CDS from AIG. In return for that premium - which changes day to day - AIG agrees to give you $10 million should...

Author: /time Magazine | Title: How Financial Madness Overtook Wall Street | 9/18/2008 | See Source »

...risks involved. Would you know how to rate a collateralized loan obligation? Or commercial-mortgage-backed securities? Sophisticated investors took Moody's and S&P's word for it, and it turned out that the agencies didn't know what they were doing. Credit raters, who claim to offer only opinions, are party to Wall Street's cycles too. At the beginning, they're far too lenient with borrowers, who are the ones who pay their rating fees. Then, after a couple of embarrassments - remember Enron and WorldCom? - the raters tighten up, maybe too much. Then memory fades...

Author: /time Magazine | Title: How Financial Madness Overtook Wall Street | 9/18/2008 | See Source »

...public health concern. He said he supported the initial call for a state-wide prohibition but was “happy Boston moved ahead on its own.” Over the past four years, Harvard University Dining Services has been decreasing its use of trans fats in its offerings. In the fall of 2007, HUDS completely eliminated trans fats from its menu. Debates about implementing a similar ban in Cambridge have yet to reach a conclusion. Several restaurants, including Grafton Street and b. good, already prepare their meals without trans fats. B. good’s General Manager Mike...

Author: By Katherine A. Petti, CONTRIBUTING WRITER | Title: Boston Outlaws Use of Trans Fat | 9/17/2008 | See Source »

...Open daily, 6 a.m.-Midnight With fake grass covering the walls, funky lanterns, and a frozen yogurt with probiotic bacteria that helps prevent yeast infections, this is no average ice cream shoppe. In addition to its extra creamy ice cream made in nearby Jamaica Plain, the chain J.P. Licks offers hard and soft frozen yogurt, homemade baked goods, and house-roasted organic, fair trade coffee served from 6 a.m. onwards. Ice cream flavors range from the classics to seasonal choices like apple crisp to the highly recommended Oreo cake batter. Of course, there will always be critics...

Author: By Samantha L. Connolly and Elizabeth C. Pezza | Title: Finger Lickin' Good | 9/17/2008 | See Source »

...contrast between the two leading candidates seems to offer the voters a clear choice: Livni, 50, is an elegant but often humorless lawyer who did a brief stint in Europe as a Mossad agent. She is committed to seeking peace with the Palestinians, based on a two-state solution, and she is admired by U.S. Secretary of State Condoleezza Rice, among others, for her level-headedness and tenacity. A mother of three who lives in a modest Tel Aviv apartment, Livni's image as "Mrs. Clean" resonates with Israelis tired of the sleaze associated with Olmert, the target of long...

Author: /time Magazine | Title: Who Will Follow Olmert as Israeli Prime Minister? | 9/17/2008 | See Source »

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