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...Smith, a finance professor at New York University and a former Goldman Sachs partner, argues in Paper Fortunes, his new history of Wall Street, that decades of financial innovation that seemed like positive evolutions at the time have turned our markets into scary places. In part, Smith says Wall Street is fixing its problems by reining in pay and lowering leverage ratios. But he believes Washington and regulators still need to intervene to make financial markets safer...

Author: /time Magazine | Title: An Ex–Goldman Partner Lets Loose on Wall Street | 2/2/2010 | See Source »

Several times in recent years, Jobs has published an open letter explaining some increasingly controversial part of Apple's business or his personal life. He wrote notes explaining Apple's environmental policies, revealing their plans for a native SDK for the iPhone and addressing the concerns about his health. Each note led, directly or indirectly, to a major, and positive, shift in the public perception of the issue in question. Maybe it's time for another letter...

Author: /time Magazine | Title: Questions (and Answers) on the iPad's Shortcomings | 2/2/2010 | See Source »

...Lynch, Lehman Brothers, UBS and Citigroup all had large amounts of mortgage bonds or real estate investments that they had parked on or off their balance sheets - but were responsible for. They were chasing the same higher yields that all their investing clients were. Those investments comprised the greatest part of those firms' write-offs. Those weren't client-driven trades. They decided to take them themselves. The idea that proprietary trades were a trivial part of the losses at the banks is just not realistic. (See 25 people to blame for the financial crisis...

Author: /time Magazine | Title: An Ex–Goldman Partner Lets Loose on Wall Street | 2/2/2010 | See Source »

...clearly in a debt league of its own. Obama's proposed deficit, representing about 11% of gross domestic product, is part of a 10-year plan aimed at reducing the U.S. budget shortfall from its current level to a still hefty annual average of 3.6% if everything goes well. The deficit amounts may be less dizzying in Europe, but they're still a major cause of concern for fiscal purists who fear that some governments may end up drowning in red ink. Twenty of the European Union's 27 members are running deficits to ease their way through the global...

Author: /time Magazine | Title: The U.S. Is Not Alone — Europe's in Debt Too | 2/2/2010 | See Source »

...Perhaps the worst part, however, is that deficits have risen the fastest in the euro-zone group, which requires members to limit their budget shortfalls to 3% of GDP. Many of these countries began exceeding that threshold before the financial crisis began and then went well above it after the crash. E.U. countries collectively spent $1.5 billion to save their vulnerable banking sectors and a further $200 billion in stimulus funding to revive their economies. Although the latter helped the 16-nation euro zone exit the recession in the middle of 2009, it also lifted already lofty deficit levels even...

Author: /time Magazine | Title: The U.S. Is Not Alone — Europe's in Debt Too | 2/2/2010 | See Source »

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