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...that as the demand for loans from creditworthy borrowers picks back up, there might not be enough lending to go around. Part of that has to do with many small banks' capital constraints - money they would lend is still tied up in those real estate loans. Just as important, though, other places business owners have looked to for funding in recent years, like home-equity loans and credit lines from nonbank finance companies like CIT, aren't likely to bounce back to their former glory anytime soon...

Author: /time Magazine | Title: Banks and Small Business: The Crunch Is Still Ahead | 3/22/2010 | See Source »

Merkel's main headache is Westerwelle, whose various job titles seem to have given him carte blanche to be the government's unofficial troublemaker. Finding himself holding the balance of power following 11 years in opposition, the ambitious politician is enjoying his first taste of power. Even though his main job is Foreign Minister, Westerwelle has flexed his muscles on domestic issues from tax reform to health care to nuclear power. Gero Neugebauer, a political scientist at the Free University in Berlin says Westerwelle's inexperience in government makes him a loose cannon. "Westerwelle's criticism gives the impression that...

Author: /time Magazine | Title: Germany: Tensions at the Top | 3/22/2010 | See Source »

...more than 5% of GDP this year - far more than the 3% limit set by European Union rules. Add in worries that Berlin could end up bailing Greece out of its own financial predicament (so far Merkel's response to calls for help has been a firm nein, though she has proposed a new European Monetary Fund that could help in the future) and you can understand why Germans are disgruntled...

Author: /time Magazine | Title: Germany: Tensions at the Top | 3/22/2010 | See Source »

...choices of corrupt officials posted to Marjah and the civilian casualties caused by the NATO assault. They also demanded that he build schools and hospitals and provide jobs. "They had some very legitimate complaints - very, very legitimate," Karzai said soberly as he left the mosque. "They felt as though they were abandoned, which in many cases is true...

Author: /time Magazine | Title: Afghanistan's Fix | 3/22/2010 | See Source »

...drug syndicates will be back. Much of the burden will fall to dozens of Afghan officials who arrived on the back of the military offensive to set up a new local administration - McChrystal's so-called government in a box. It has not gotten off to a promising start, though. Abdul Zahir Aryan, the man picked to be the district chief of the new Marjah administration, has a far-from-stellar record. He left for Germany in 1989 and bounced between odd jobs in hotels and laundries; according to U.S. and German press reports, he served four years in prison...

Author: /time Magazine | Title: Afghanistan's Fix | 3/22/2010 | See Source »

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