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...upside of that system was stability, though, the downside was a limit on how much money you could make with the capital you had. In the late 1970s, a lot of very smart Wall Street types managed to create a shadow banking system to finance more aggressive, risky and profitable investments, including novel vehicles based on the bad home loans peddled mostly (although not exclusively) by nonbank mortgage firms. (The government-sponsored Fannie Mae and Freddie Mac bought into the high-risk innovations of the shadow banking system around 2005 by buying a bunch of now-toxic mortgage-backed securities...

Author: /time Magazine | Title: Are Paulson and Bernanke Running Out of Options? | 10/8/2008 | See Source »

...system that had none of its post-Depression stabilizing pillars: no deposit insurance, no access to the lender of last resort, no resolution regime and only a patchworky, inadequate framework of restraints for risk-taking. In the old system, Americans' deposits in regular banks financed the system. In the shadow banking system, Americans' deposits in money market funds provided the asset anchor. As AIG teetered on the brink in mid-September, a run began by institutional investors on the money market funds...

Author: /time Magazine | Title: Are Paulson and Bernanke Running Out of Options? | 10/8/2008 | See Source »

...sophisters and calculators like Theo Epstein and Billy Beane, has succeeded. But as long as our memory endures where Yankee Stadium cannot, we shall know that the baseball of today—with its expansion teams, steroids, instant replay, and other demonic innovations—was a mere shadow of what it once was, and what it may yet again still...

Author: By Daniel E. Herz-roiphe and Christopher B. Lacaria | Title: Point/Counterpoint: Et In Our Stadia Ego | 10/2/2008 | See Source »

...these reasons, Shea Stadium has also always been a particularly appropriate home for the New York Mets. Its peculiar contours echo the quirky appeal of a team constantly in the shadow of their better-attended, better-paid, and better-performing (at least until this year) rivals the Yankees, who play a scant few miles away...

Author: By Daniel E. Herz-roiphe and Christopher B. Lacaria | Title: Point/Counterpoint: Et In Our Stadia Ego | 10/2/2008 | See Source »

...might be able to give them an authoritative prognosis. Conference fringe meetings featuring representatives from the Republican and Democratic parties drew capacity crowds. Tory MPs who had traveled to the conventions in Denver and Minneapolis gave starry-eyed accounts of the proceedings. Francis Maude, a member of the shadow cabinet, described himself as having been "one of Obama's 85,000 close friends in Denver" - but refused to reveal his personal preference for U.S. President...

Author: /time Magazine | Title: Washington Antics Dismay Britain's Conservatives | 10/1/2008 | See Source »

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