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...banks have admitted to $334 billion in losses and write-downs, and the final total will almost certainly be much higher. To compensate, they have managed to raise $235 billion in new capital. The trouble is that the net loss of $99 billion implies that they will need to shrink their balance sheets by 10 times that figure - almost a trillion dollars - to maintain a constant ratio between their assets and capital. That suggests a drastic reduction of credit, since a bank's assets are its loans. Fewer loans mean tighter business conditions on Main Street. Your local car dealer...

Author: /time Magazine | Title: The End of Prosperity? | 10/2/2008 | See Source »

...That was a pointed reference to the perils of investing in U.S. financial companies over the last 18 months. In May 2007, China Investment Corp. (CIC), the country's sovereign wealth fund, sank $3 billion into Blackstone Group, the U.S. private equity firm, only to watch its stake shrink by half in value as financial stocks tanked. "The leadership [in Beijing] thinks they got taken and they are determined not to let it happen again," says a Hong Kong investment banker close to CIC. But that does not mean the Chinese aren't interested. CIC bought 9.9% of Morgan Stanley...

Author: /time Magazine | Title: Japan to the Rescue of Ailing US Firms | 9/23/2008 | See Source »

...long felt the financial sector is bloated,” he said. “It’s had epic profits for two decades. It was bound to shrink...

Author: By Maxwell L. Child, CRIMSON STAFF WRITER | Title: Econ Professors Lament Financial Crisis | 9/18/2008 | See Source »

Despite the shift in emphasis, the normally scheduled career fair will not shrink this year, Mount said, as recruiters’ attendance was confirmed...

Author: By Aditi Balakrishna, CRIMSON STAFF WRITER | Title: Mount Assumes Helm of OCS | 9/16/2008 | See Source »

...assuming the worst. "I hate scumbags," Turk says. "I like shooting people." He explains that he joined the police force for the badge and the gun. "Most people respect a badge. Everybody respects a gun." After a few suspicious homicides, both men undergo a brief psychiatric evaluation. When the shrink asks, "How do you feel when innocent people get killed?" Rooster replies, "You know, I sorta got numb to it." He's been around too long for remorse; that just slows down the trigger-finger reflex, gets...

Author: /time Magazine | Title: Righteous Kill: De Niro and Pacino, ReHEATed | 9/12/2008 | See Source »

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