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...toxic assets from banks using federal money, and then allowing private money managers to purchase and trade this paper. There has only been speculation about the outcome, and that has been over a broad range. Prominent economists, led by James Galbraith and Paul Krugman, have said that the plan may actually do more harm than good. In the Treasury's corner, Pimco, the largest fixed income management firm in the U.S., endorsed the Administration's plan. "This is perhaps the first win/win/win policy to be put on the table and it should be welcomed enthusiastically," Bill Gross, PIMCO...

Author: /time Magazine | Title: Why the Market Rally Is Like Waiting for Godot | 3/24/2009 | See Source »

Those are more attractive terms than the TALF or investment funds offer, and the buzz that it immediately generated helped give the whole package a good investor-friendly feel. But the TALF plan helps in its own way. Though just getting started, it seems to have a chance at success, and thus gives the impression that the collaboration between the government and investors might work. Next to those two pillars, the once shaky "public-private investment fund" idea now seems sturdier and more likely to succeed...

Author: /time Magazine | Title: Geithner's Toxic-Asset Plan: Wall Street Finally Cheers | 3/23/2009 | See Source »

...president has already made significant sacrifices by scaling back his campaign promises in the current budget. To make the numbers balance under a rosier outlook, Obama shrunk the size of the "Make-Work-Pay" tax credit by 20%, to $800 per family. He slowed down his foreign aid spending plans, scrapped a plan to reduce income taxes for the elderly, and proposed higher taxes for wealthy taxpayers who make charitable contributions...

Author: /time Magazine | Title: Will Deficits Force Obama to Sacrifice His Agenda? | 3/23/2009 | See Source »

...rollout plan for the rest of the world set. Tata Motors sells cars, trucks and buses in 16 countries in Europe, Africa, the Middle East, South America and South Asia. For now, the company only has firm plans to export the Nano to Europe starting in 2011. While the possibility of selling Nanos in the SUV-loving U.S. were once considered remote, Tata executives now say the recession is changing the buying habits of American consumers, offering an opening for economical vehicles. They have plans to develop a Nano for the U.S. in the next three years...

Author: /time Magazine | Title: The World's Cheapest Car Debuts in India | 3/23/2009 | See Source »

...between the U.S. and Iran: Neither side wants to negotiate from a position of weakness, which is why the U.S. is keeping in place, and trying to increase, its leverage in the form of economic pressure on Iran to desist from enriching uranium. But Iran sees the U.S. game plan and believes that Washington won't be able to muster the level of economic pressure necessary to force its hand - and the U.S. can hardly afford to initiate hostilities with the Islamic Republic, because it needs Iran's cooperation in Iraq and Afghanistan. A dialogue has clearly begun...

Author: /time Magazine | Title: Obama's Overture to Iran: Why Khamenei Won't Budge | 3/23/2009 | See Source »

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