In The News

Why FAS 157 Strikes Dread Into Bankers

William Rees-Mogg November 14, 2007
Accounting rules organize how money is classified and valued – and investors expect transparency. New accounting standards, designed with that goal in mind, go into effect on November 15, 2007, and could exacerbate already volatile financial markets. By classifying a company's assets according to marketability, the new rules highlight those that are most risky, like sub-prime mortgages, and...

The Dollar in Danger

Sebastian Mallaby November 14, 2007
Overseas investors are skittish about investing in the US, in light of the recent sub-prime mortgage defaults. The US government functions by taking on debt. But as foreign investors resist investing in low-yield government notes and similar instruments described as low risk, the dollar sinks in value. The value of many currencies and commodities, including oil, are linked to the dollar. So many...

EBay: The Place for Microfinance

Catherine Holahan October 24, 2007
Ebay, the internet auction site, is getting into the micro-loan business, by which investors can provide loans for $50 or more to small businesses. “The key to micro-lending is that it fosters self-reliance and, eventually, sustainable economic growth in a way that charity does not,” says Tracey Pettengill Turner, as reported by Catherine Holahan in Businessweek.com. Turner started MicroPlace.com...

Still Hanging On

Satoshi Kambayashi September 24, 2007
American foreign policy may have an independent streak, but the US depends on huge amounts of foreign capital. Despite some recent dire reports, the dollar’s recent decline has been small, considering recent volatility in the markets and tightening of credit worldwide, reports Satoshi Kambayashi. America’s tendency to accumulate debt contributes to the dollar’s dropping value. Kambayashi points...

Global Risk of US Credit Crisis – Part II

David Crane September 24, 2007
The globalization of finance has made vast amounts of capital available to many across the world, allowing select leading firms and individuals to become fabulously wealthy. But a lack of effective regulation and opaqueness of many financial instruments also exposed many firms and individuals to enormous risk. Globally connected financial markets and high-speed technology mean that one nation’s...

Global Risk of US Credit Crisis – Part I

David Dapice September 21, 2007
Uncertainty swirling in the US financial markets and the Federal Reserve's rate cut leave world players, along with US homeowners and investors, in a quandary. In the first part of this series, economist David Dapice analyzes the global implications as the uncertainty and lack of confidence associated with the credit crunch spread beyond US borders, hurting banks in Europe and investors in...

US Must Reassert Global Leadership

Samuel R. Berger September 13, 2007
Intent on the war in Iraq, the US has reduced its involvement elsewhere in Asia, South America and Africa. Meanwhile, China and Russia have stepped into the vacuum, warn former Clinton administration officials, Samuel Berger and Eric Schwartz, writing for the Boston Globe. China has provided billions for roads, ports and other projects in nations like Laos, Cambodia and the Philippines, they...