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...risk could be reduced if U.S. consumer demand for Japanese products began to strengthen, or if the government introduced additional stimulus spending. Due to budget constraints, says Shirakawa, the latter is unlikely. Japan currently spends 4% of GDP, an unusually high ratio for a developed country, to service its burgeoning debt. But a pickup in consumption is possible, he says. The savings rate in the U.S. has increased in the past few months, and consumers may be feeling more confident that they can now spend a little more. That could provide some relief to Japan's battered export sector; Japanese...

Author: /time Magazine | Title: Japan's Economic Green Shoots Could Wither Fast | 7/1/2009 | See Source »

...consumer spending - were asked to cough up more collateral when renegotiating loans, while other marginal customers were denied further credit. To strengthen the bank's financial position even more, Sands raised $2.7 billion in capital through a December share sale, raising the bank's key "tier one" capital ratio to 10.1%. (An 8% ratio is considered healthy.) Jaspal Singh Bindra, StanChart's Hong Kong - based CEO for Asia, says that previous downturns like the 1997 Asian crisis made management especially wary of financial-system turmoil. "We learned that when there is a market problem, it spreads from a problem...

Author: /time Magazine | Title: Position Player | 6/29/2009 | See Source »

...Because the formula for determining credit scores, which banks use to decide whether to give you a mortgage or any other loan, looks at something called your "utilization ratio," the total amount of credit you use vs. the amount you have available. If you have $25,000 worth of available credit and you put $5,000 on your cards every month, your utilization ratio is a healthy, hey-I'm-living-within-my-means 20%. But cut down that credit line to $10,000 and suddenly your ratio jumps to 50%, making you look pretty overextended...

Author: /time Magazine | Title: Could Your Credit Be Too Good? | 6/22/2009 | See Source »

...those words were taken out of context and that her appellate opinions are hardly radical on race. Tom Goldstein of SCOTUS Blog has estimated that of the 96 race-related cases other than Ricci she heard on the Court of Appeals, "Judge Sotomayor rejected discrimination-related claims by a [ratio] of roughly 8 to 1." (See the top 10 Supreme Court nomination battles...

Author: /time Magazine | Title: Where Sonia Sotomayor Really Stands on Race | 6/11/2009 | See Source »

...that raises an interesting question: Why would we think that a debt-to-income ratio of 100% is sustainable? Well, for one thing, the economy has ostensibly evolved since the 1950s, and even since the 1980s. Advancements like securitized lending seem to have created a system in which interest rates are lower and consumers are able to shoulder more debt than they once were. The percentage of income that goes toward paying interest on debt went from 11% at the beginning of 1980 to 14% at the beginning of 2008, a much smaller jump than the increase in gross amount...

Author: /time Magazine | Title: A Drag on the Economic Rebound: Consumer Spending | 6/10/2009 | See Source »

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