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...that client funds would be invested in a basket of common stocks within the Standard & Poor's 100 Index, a collection of the 100 largest publicly traded companies in terms of their market capitalization. I promised that I would select a basket of stocks that would closely mimic the price movements of the Standard & Poor's 100 Index. I promised that I would opportunistically time these purchases and would be out of the market intermittently, investing client funds during these periods in United States Government-issued securities such as United States Treasury bills. In addition, I promised that as part...

Author: /time Magazine | Title: Bernard Madoff's Full Statement to U.S. District Court | 3/12/2009 | See Source »

...Early, Act Often After the bubble burst, Japan's powerful bureaucrats, who had earned a reputation for brilliance in the 1980s, dithered for years. In the face of slumping demand and price deflation, they cut interest rates too slowly, delayed a fiscal stimulus and failed to restructure so-called zombie banks, whose bad loans made them dead in all but name...

Author: /time Magazine | Title: The Lessons From Japan | 3/12/2009 | See Source »

...their money and pay for getting it wrong. But these bond buyers are pros. If there is to be any market discipline of risk-taking by banks, bond investors ought to be the ones who enforce it by withholding their cash from the bad apples - and paying the price for misjudgments. Plus, a few concessions from creditors could ease the burden on taxpayers dramatically. If Citi's $486 billion in wholesale debt were converted into common shares - admittedly a pretty extreme solution - the company's balance-sheet woes would evaporate. Which is why these arguments have been gaining in popularity...

Author: /time Magazine | Title: The Great Bond Bailout | 3/12/2009 | See Source »

...standard law-enforcement methods have failed: Gang members, whose whole life revolves around conflict with the police, value prison as an expected part of the life cycle, and see death as a price to be paid for posthumous respect. [Drug-related] arrests and seizures do not have a lasting impact on them...

Author: /time Magazine | Title: The Disturbing Rise of Drug Gangs | 3/11/2009 | See Source »

Officials are worried that if the price of food keeps rising too fast it could prompt widespread social unrest. The pensions of millions of retired Russians continues to hover below the poverty line and thousands of workers are losing their jobs. At a Communist rally in central Moscow in late February, the increased number of riot police detailed to monitor proceedings was telling of the government's growing fears...

Author: /time Magazine | Title: Russia's Economic Rescue Plan: Go on a Diet | 3/11/2009 | See Source »

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