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...current leaders are looking increasingly unprepared to deal with what may be the country's greatest challenge since the end of World War II. Japan's economy, the world's second largest, is contracting at the fastest rate among all developed nations. GDP growth in the last quarter shrank at an alarming annualized rate of 12.7%, Japan's worst showing since the 1974 oil shock. But instead of taking vigorous steps to counteract a worsening recession, Prime Minister Taro Aso is lurching from one embarrassing gaffe to the next, and seems in imminent danger of losing control of his Liberal...

Author: /time Magazine | Title: Crunch Time | 2/19/2009 | See Source »

Investor sentiment was shaken over the holiday weekend by news that Japan's economy shrank at an annualized rate of almost 13% in the latest quarter. Economic news from virtually every corner of the world is reinforcing the notion that this economic storm knows no bounds, and may be gaining fury...

Author: /time Magazine | Title: Why the Stock Market Keeps Plummeting | 2/17/2009 | See Source »

...woes have an obvious cause: the public perception is that his administration has failed to come up with strong enough medicine to counteract the country's increasingly dire economic plight. The world's second-largest economy shrank at an alarming annualized rate of 12.7% last quarter, its worst quarterly contraction since the 1974 oil shock. Exports also fell an unprecedented 13.9%, while the unemployment rate shot up to 4.4% in December, reaching levels not seen since World War II. "There is no doubt that the economy is in its worst state in the postwar period," said Economic and Fiscal Policy...

Author: /time Magazine | Title: Japan's Prime Minister Aso Faces Ugly Economic Truths | 2/16/2009 | See Source »

...sugar pill but call it an analgesic, and pain may actually go away. Parkinson's disease patients who underwent a sham surgery that they were told would boost the low dopamine levels responsible for their symptoms actually experienced a dopamine bump. Newberg describes a cancer patient whose tumors shrank when he was given an experimental drug, grew back when he learned that the drug was ineffective in other patients and shrank again when his doctor administered sterile water but said it was a more powerful version of the medication. The U.S. Food and Drug Administration ultimately declared the drug ineffective...

Author: /time Magazine | Title: The Biology of Belief | 2/12/2009 | See Source »

...This recession was online advertising's big test. The internet, which is the most efficient medium, was supposed to outperform all of the others when budgets shrank. The oldest media businesses were supposed to perform worse with each downturn in the economy. The common assumption was that, over time, online advertising would eventually get 20% of all marketing dollars spent...

Author: /time Magazine | Title: False Hopes for Internet Profits | 2/4/2009 | See Source »

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