In The News

Globalization’s Aftershocks

Temma Ehrenfeld April 29, 2008
The new world order born out of the fall of the Soviet Union triggered fundamental changes in the global economy, many out of the reach of government regulation. Italian economist and author Loretta Napoleoni, in an interview with Newsweek, defines this trend of trade in unregulated markets as the rise of “rogue economics” – including black market sales, poaching of fish or rare species, as well...

Irrational Exuberance to Bust: Financial Bubbles Demand Regulation

Kemal Dervis April 23, 2008
As the financial sector has gained dominance in the world economy, some investors have become accustomed to steady growth and double-digit profits. While the financial industry rewards efficiency and innovation among competing firms, the relentless quest for profits and a short-term mentality in some finance circles have contributed to a series of asset bubbles: the Asian-Russia financial crisis...

Housing Woes in US Spread Around Globe

Mark Landler April 22, 2008
Housing prices are dropping around the globe like dominoes – and some analysts fear an extended downturn could result in economic collapse. Countries and regions with the highest prices, including Ireland and other European nations, have the most to lose, reports Mark Landler in the New York Times. Residential investment accounts for 4 percent of the US economy versus 12 percent of the Irish...

Paulson Financial Regulation Reform Plan Already Faces Discounting

April 4, 2008
The mortgage-backed securities crisis has resulted in turmoil in the global markets, but politics could get in the way of any quick fixes of the US financial system, reports Thomson Financial News. Three short-term recommendations in the proposal from Treasury Secretary Henry Paulson include expanding a presidential working group on the financial markets; establishing a federal commission to...

Weak Dollar Feels New Stress

Joanna Slater March 12, 2008
Most countries around the world are fighting a trend of global inflation by tightening their currencies, allowing the values to rise. That places pressure on a declining US dollar, writes Joanna Slater for the Wall Street Journal. A declining dollar contributes to rising prices for raw materials like oil, which in turn contributes to inflation. “The inflation dilemma is at its most stark in...

US Pushes Sovereign Funds to Open to Outside Scrutiny

Bob Davis March 3, 2008
Western banks and companies have recently relied on huge savings accounts run by Asian and Middle Eastern governments for some financial rescues. But governments in the US and Europe also know that constituents can get uncomfortable over bailouts or foreign ownership of major companies, particularly those linked to national security. So the US has suggested that two of the major funds – based in...

Brave New Economy

David Hale February 27, 2008
The Asian financial crisis 10 years ago convinced many governments on the continent to become big, yet cautious savers. Developing nations account for 75 percent of the world’s $6 trillion of foreign exchange reserves – and have sovereign funds worth $2.5 trillion. By purchasing vast sums of US treasury bonds and other debt, Asian and Middle Eastern investors contributed to low interest rates in...