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...Financial firms are built on capital. They take in a dollar, borrow against it and then lend out $3, $4 or $9. Or $30. In the past few years, executives have been using thinner and thinner capital - acquisitions and questionable off-balance-sheet arrangements - to build their money pails. In good times, the more of those cheap sources of capital you use, the more profitable your bank will...

Author: /time Magazine | Title: Why Your Bank Is Broke | 1/31/2009 | See Source »

Gettelfinger also said he believes several of the loan provisions were especially punishing to the UAW. The reason for such harshness, he says, is that Republicans in Congress were angry over the GOP's defeat in November. "We didn't sign the term sheet," Gettelfinger says, defiantly...

Author: /time Magazine | Title: GM and Chrysler Seek Union Concessions | 1/30/2009 | See Source »

...company's ill-fated $400 million purchase of women's apparel shop J. Jill in 2006 burdened its debt load. "What's hurting them more than anything is that they've got lots of debt on their balance sheet," says Betty Chen, a retail analyst at Wedbush Morgan Securities. Talbots has shuttered its men's, kids and U.K. businesses, and is shopping for a buyer for J. Jill. Good luck finding one in today's market. Earlier this month, investors received some encouragement when the company secured a $150 million credit line from three Japanese banks. In 2008 Talbots also...

Author: /time Magazine | Title: Retailers on the Ropes: Can These Companies Survive? | 1/29/2009 | See Source »

...Chukumba. Office Depot's less capital-intensive contract business - which involves making deals with companies and governments to supply them with paper, pens and staplers - somewhat shields it from the more dire retail shocks. But the company is still in a dangerous spot. "With their leases and off-balance-sheet leverage, Office Depot's financial risk is undoubtedly high," says Stephen Chick, an equity analyst at Friedman, Billings, Ramsey...

Author: /time Magazine | Title: Retailers on the Ropes: Can These Companies Survive? | 1/29/2009 | See Source »

...Using a robotic camera mount and special software, photographer David Bergman stitched together 220 separate images of the Inauguration to create a large-scale photo so zoomable that you can see details down to the notes on the pages of the band's sheet music. Look, the Bush daughters had blankets! Look, Yo-Yo Ma is taking a picture with his iPhone! Look, Newt Gingrich isn't even watching Obama give his speech! On his website, Bergman says his panorama, a virtual Where's Waldo of Inauguration Day, is 59,783 pixels wide by 24,658 pixels tall; the photo...

Author: /time Magazine | Title: Inauguration Spy Cam | 1/27/2009 | See Source »

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