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...Lehman Brothers. So after those two pillars of U.S. finance crumbled, German cities suddenly faced the risk of having to make huge payments - taken together, as much as €30 billion ($40 billion), according to some estimates - to their American investors. (Read "Why Berlin Says U.S. 'Bad Bank' Plan...

Author: /time Magazine | Title: German Cities Suffer in the U.S. Financial Crisis | 4/9/2009 | See Source »

...German government to bail them out. In March, a group of municipal authorities appealed to the Kreditanstalt für Wiederaufbau, or KfW, Germany's Marshall Fund-era state-owned bank for reconstruction and development, to buy out AIG and replace it as their credit insurer. The plan might work, but KfW is reluctant. "We are looking into the matter," a KfW spokeswoman says...

Author: /time Magazine | Title: German Cities Suffer in the U.S. Financial Crisis | 4/9/2009 | See Source »

...roughly equally between auto and credit cards. The $1.7 billion is well below the $4.7 billion in loans from last month. Fed officials say they will return after the holiday weekend to try and get a sense of why the subscription was so light. (Read "Doubts Raised About Government Plan to Boost Consumer Lending...

Author: /time Magazine | Title: Still Few Buyers in Fed's Effort to Restart Lending | 4/9/2009 | See Source »

...risk of investment. The first was that founders frequently ended up owning a tiny percentage of their company as their ownership got diluted each time they brought in a new round of investment. The second was that there's often no correlation between the assumptions in a theoretical business plan and reality. Many great business plans turned into lousy start-ups - one reason for the last dotcom crash...

Author: /time Magazine | Title: The New Internet Start-Up Boom: Get Rich Slow | 4/9/2009 | See Source »

Other than leading by example, the military can do little to bolster faith in the state. As part of his plan, Obama has proposed a civilian surge - a phalanx of mentors for the Afghans. Much of the more than $32 billion that the U.S. government has spent in aid to Afghanistan since 2002 has gone through the military or its provincial reconstruction teams. The projects are designed to earn goodwill for foreign forces as much as for local governors, but they also have the unintended consequence of undermining the central government, which never gets a chance to take credit...

Author: /time Magazine | Title: The U.S. in Afghanistan: The Longest War | 4/8/2009 | See Source »

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