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Like American business generally, Harnischfeger entered this turmoil strong and lean. Well-managed with a skilled and productive work force, it had prospered from the past decade's explosive growth in global freedom and commerce. But then came the currency crisis that began in Thailand in July 1997 and spread like a contagion through the rest of Asia--and last month to Russia and last week to Latin America, hammering down local currencies and slashing demand for U.S. exports. Cheaper Asian exports began grabbing more and more domestic business away from U.S. companies and sliced into their earnings. That trend...

Author: /time Magazine | Title: What A Drag! | 9/14/1998 | See Source »

When the Dow plunged 512 points last Monday, investors at first regarded it as an irrational response to the financial and political turmoil in Russia--a vast country that still bristles with 7,000 strategic nuclear warheads but whose economy scarcely rivals that of the Netherlands and accounts for less than 1% of U.S. exports. Investors treated Monday's market action as another of those "dips" in which they had been taught to buy stocks on the cheap. Heck, it wasn't even as big as the one-day dip last Oct. 27, and the market had shrugged that...

Author: /time Magazine | Title: What A Drag! | 9/14/1998 | See Source »

...drop served as a reminder--one about as subtle as a poke in the eye--that in today's global economy, not even a healthy U.S. can quarantine its factories and offices and markets from the illnesses of countries halfway around the world. It vividly showed Americans how the turmoil in Asia and Latin America is slashing the profits of U.S. corporations, which might be forced to respond with layoffs and cutbacks in spending...

Author: /time Magazine | Title: What A Drag! | 9/14/1998 | See Source »

...storms, real and metaphysical, buffeted the South, brewed turmoil in Moscow and depressed world financial markets, the clouds of another tempest hung about the borrowed clapboard cottage, where President Clinton and his family were winding up their decidedly unrelaxing vacation on Martha's Vineyard, Mass. The official word from the White House was that a "healing process" was under way. And indeed, the President was doing his best to make amends, not only with the woman who is making good on her promise to stick with him for better or worse, but also with the political party that has always...

Author: /time Magazine | Title: Stormy Weather | 9/7/1998 | See Source »

...regional coalition that swept Laurent Kabila to power now appears badly divided over his future -- and that division may bring protracted turmoil in the long-suffering Congo. While Rwanda and Uganda are squarely behind the rebellion to oust Kabila, the guerrilla-turned-president appears to still have the active backing of Angola, Congo's southwestern neighbor and perhaps the region's leading military power...

Author: /time Magazine | Title: Neighborhood Split Over Kabila | 8/19/1998 | See Source »

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