In The News

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...

Japan Sweats It Out as It Wages War on Air Conditioning

Sebastian Moffett September 18, 2007
In August, Japan's three biggest banks joined the ranks of the "Cool Biz" initiative, a movement to reduce energy use and decrease carbon output. "Cool" businesses maintain building temperatures at 82 degrees Fahrenheit. Bank officials discovered that the move was good for both the environment and business. Concerned about global warming, Japanese customers avoid firms...

Globalization Was Good Then, Not Now

Mark Thirlwell September 17, 2007
Even as economists fret about sustaining global economic integration and politicians in the wealthiest nations make opposition to globalization a winning campaign theme, the phenomenon continues to connect the world. Such a dichotomy may not continue for long, warns economist Mark Thirlwell. Growing alarm in the developed nations stems from the emergence of powerful competitors in the developing...

Cut Fuel Use and the Trade Deficit

Bruce Stokes September 14, 2007
An old saying suggests that “killing two birds with one stone” is the height of efficiency. Pressuring China to re-set the yuan to a higher value and cut subsides has not helped to lower the US trade deficit. Instead, the US could take immediate action regarding one major import, suggests Bruce Stokes. “Net US outlays for imported oil and natural gas exceed the nation’s trade balance with China,...

A Bumper Crop of Inertia

Robert J. Samuelson September 14, 2007
US farmers of wheat, corn, soybeans, cotton and rice are hooked on government subsidies that began in the 1930s during the Great Depression. Since then, the subsidies have continued, year after year, while political or agriculture industry leaders refuse to admit that changing needs demand new priorities. Rather than saving family farms, creating jobs, encouraging good nutrition habits or...

“Fed, We Have a Problem”

Jeffrey Garten September 12, 2007
Governments with checks and balances are accustomed to internal quarrels over the best ways to solve problems. Such is the case for the US in confronting a sub-prime mortgage crisis that threatens consumer spending, credit availability and jobs around the globe. Firms and investors facing immediate losses from the crisis urge the chairman of the US Federal Reserve System, Ben Bernanke, to lower...