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...devised and plugged in those new financial instruments, creating a financial Frankenstein the likes of which we had never seen. Great new fortunes were made, and with them came great new hubris. The newly minted masters of the universe even had the nerve to defend their ridiculous income tax break - much of the private-equity managers' piece of their investors' profits is taxed at the 15% capital-gains rate rather than at the normal top federal income tax rate of 35% - as being good for society. ("Hey, we're creating wealth - cut us some slack...

Author: /time Magazine | Title: How Financial Madness Overtook Wall Street | 9/18/2008 | See Source »

...Bush over 90% of the time. The economy is tanking, and McCain is still insisting that the fundamentals remain strong; he's also been a consistent vote against financial regulation, a strong supporter of investing Social Security benefits in the stock market and a recent convert to the Bush tax cuts. Voters prefer Obama's positions to McCain's on almost every major policy issue, and the Republican brand still seems toxic. The Obama team believes, as campaign manager David Plouffe says, that "at the end of the day, this is going to come down to the choice...

Author: /time Magazine | Title: Where's the Fire? | 9/18/2008 | See Source »

...asked during the initial lipstick-on-a-pig spat what the media would talk about in two days, he replied, "Whatever the McCain campaign wants us to talk about, because the McCain campaign is assertive." The media have dutifully fact-checked the McCain campaign's mischaracterizations of Obama's tax plans and its howler that Obama wants to teach kindergartners about sex. But the Obama camp has often seemed flat-footed in the face of nonbeanbag politics, as if it didn't think it had to dignify Republican smears with a response. "Obama wants the campaign to be about issues...

Author: /time Magazine | Title: Where's the Fire? | 9/18/2008 | See Source »

...Obama doesn't do spontaneous combustion. And he's keenly aware of the deeper danger of fire for America's first black presidential nominee. Over the past 19 months, he's been attacked as a naive novice, an empty suit, a tax-and-spend liberal, an arugula-grazing élitist and a corrupt ward heeler, but the attacks that nearly derailed him involved the Rev. Jeremiah Wright, attacks designed to portray Obama as an angry black man. White America has embraced unthreatening African Americans like Tiger Woods, Oprah Winfrey, Will Smith and Colin Powell, but this is still a majority...

Author: /time Magazine | Title: Where's the Fire? | 9/18/2008 | See Source »

...Washington Drill, Baby, Drill The U.S. House of Representatives passed a bill that would allow offshore drilling as close as 50 miles (80 km) from land but would curb tax benefits for oil companies and mandate greater use of renewable energy. Democrats, who for more than two decades have opposed coastal drilling, lauded the effort as a logical compromise, but Republicans dismissed it as a political gimmick unlikely to pass the Senate before the upcoming recess...

Author: /time Magazine | Title: The World | 9/18/2008 | See Source »

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