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...worse-than-average recession - and it looks as though we've got one - and many banks, including a number of the biggest ones, were bound to fail. The shockingly poor lending standards - housekeepers being approved for million-dollar mortgages - have only hastened their demise. "This crisis needs to be understood as something that has developed over the past decade," says Joseph Mason, a finance professor at Louisiana State University's E.J. Ourso College of Business. "This isn't just one black swan. It's a bunch of black swans that have hung out for a while and created a giant...

Author: /time Magazine | Title: Why Your Bank Is Broke | 1/31/2009 | See Source »

...beginning to wonder if anyone reads basic economics anymore. It has been widely understood for centuries that government does not create wealth; it merely redistributes it. The stimulus plan can be summarized as follows: we are going to borrow a trillion dollars from foreigners and spend it on a mile-long list of pork-barrel projects that we don't immediately need (or else we would have found another way to pay for them) and hope this gets us out of the recession. Did I miss something? There is a growing consensus among historians and economists that World...

Author: /time Magazine | Title: Inbox | 1/29/2009 | See Source »

...Despite the severity of the downturn - and the size of today's protest - French leaders aren't beating a retreat. Heading into the strikes, Sarkozy sounded a conciliatory tone, assuring French citizens that he understood their problems, but also stressing that France can't "halt its reform movement...

Author: /time Magazine | Title: Massive Strike Closes France | 1/29/2009 | See Source »

...fact seems to be emerging, that George W. Bush is an enigma. No one seems to really know how he ticked, who was in power and making decisions, and how much Bush himself understood about what was going on. Could his idiot façade have been a ploy? Sandy Britton, ATHENS...

Author: /time Magazine | Title: Israel's Way Forward | 1/28/2009 | See Source »

...other words, ovens and alginates exist on the same technological continuum, and the public wouldn't be so put off by avant-garde techniques if it understood the true nature of this relationship. Impeding that realization, however, is the movement's unwieldy name. "Molecular gastronomy sounds scary," said Harold McGee, who writes regularly on the science of cooking for The New York Times, and, along with physicist Davide Cassi, also participated in the panel. "If it were called something else, it wouldn't make you think there's something there you don't know or can't trust...

Author: /time Magazine | Title: Debating the Merits of Molecular Gastronomy | 1/23/2009 | See Source »

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