In The News

Global Causes Attract Growing Share of US Giving

Susan Froetschel January 10, 2012
After the 2008 global recession, Americans understandably tightened their purse strings for charitable giving. Yet giving to international causes rose by about 15 percent in 2010 – the largest percentage increase of all categories, including religion, health or education, according to Giving USA Foundation. Nonprofits in the international affairs category attracted 5 percent of US contributions,...

China's Real Estate Bubble May Have Just Popped

Patrick Chovanec December 26, 2011
China’s real estate scene is reminiscent of the 2007 US market: developers are slashing prices and infuriating owners who paid top yuan for properties. Problems in the real estate market are extending into steel, banking, mining and other sectors. Vacant developments are numerous because wealthy Chinese savers have few alternatives for investing growing wealth. “Beijing's response to the...

Lenders Losing Battle of “Basel”

Victoria McGrane, Dan Fitzpatrick December 22, 2011
The US Federal Reserve may have little choice but to follow Europe’s lead and require US banks to add more capitalization. US banks had argued that guidelines need not be so strict, report Victoria McGrane and Dan Fitzpatrick for the Wall Street Journal. Banks described as “too big to fail,” ones that pose risk to the global financial system, are the target. “Basel regulators last month...

Britain Becomes Even More Wary of Unity

Anthony Faiola December 5, 2011
The United Kingdom moved cautiously on EU integration, retaining the pound and rejecting the euro as common currency. By opting out of the euro, Britain maintained the ability to print money and set interest rates. “Yet, as a member of the bloc, Britain has agreed to bind itself to regional regulations, employment laws and legal rulings, in exchange for a stronger voice in European affairs and...

Central Banks' Action Hints At US Fears

Geoffrey T. Smith December 2, 2011
The world’s largest central banks, led by the US Federal Reserve, have united to ease the flow of money and bank loans in the global system. The Wall Street Journal’s Geoffrey Smith compares the defensive measures tried in war, pointing out many analysts worry about what comes next and whether the defenses will hold. Perhaps most notable is the support from the US Federal Reserve. US taxpayers...

America's Other 87 Deficits

Stephen S. Roach November 25, 2011
The US has trade deficits with 88 nations, and in 2010, China’s share was about 40 percent. The trade deficits are a consequence of the country’s own spending behavior – with reduced saving by individuals, business and the government – explains Stephen Roach of Yale University. As master of the world’s reserve currency, “the US borrowed surplus savings from abroad on very attractive terms,...

Europe Short on Cash as Bond Fears Deepen

Stefan Kaiser November 23, 2011
Unlike politicians, global investors are strict taskmasters. Banks are warning that European governments can no longer take the capital markets for granted in financing public projects, writes Stefan Kaiser for Spiegel Online. His article describes Germany as a safe haven, but shortly after the article was posted, a German auction sold only 65 percent of €6 billion in 10-year bonds. Investors are...