In The News

Visit Africa. Bring Checkbook.

Jonathan Power November 15, 2007
The West has viewed Africa as an undifferentiated mess of war, disease, corruption and poverty for some time. The International Monetary Fund, however, estimates that sub-Saharan will grow at 7 percent in 2008, largely due to investment by Chinese and Indian companies. US and European experts are divided about Asian influence in Africa, whether India and China engage in mutually beneficial...

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...

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 Sovereign Wealth Explosion

Stuart E. Eizenstat November 8, 2007
A rise in state-owned funds and companies investing internationally has triggered national security concerns in a variety of countries and even some protectionist measures. These worries can sometimes be valid – observers of Russia's state-owned natural gas giant Gazprom, for instance, understand how government-controlled businesses may be used as tools of policy. However, former US...

Falling Dollar, Inflation Feed Dubai Strife

Chip Cummins November 5, 2007
The countries of the Persian Gulf have long been destinations for migrants looking to take advantage of relatively high-paying construction jobs in these economically booming states. Of late, however, foreign workers find it less cost-effective to continue working in places like Dubai, where the local currency is linked to the falling dollar. This, in conjunction with inflation in the housing...

Like Wages for Chocolate

Humphrey Hawksley August 21, 2007
Exploited by capitalists of the West, some farmers of Africa may eventually be tempted by the Chinese communist model or even worse, radical Islam as their ideology, says Humphrey Hawksley, a BBC correspondent and the author of “The History Book,” as he presents a case study of cocoa production in African countries. With stagnant prices of cocoa in international commodity markets, the real...

US Mortgage Crisis Hits Pacific Rim Markets

Carter Dougherty August 7, 2007
Lured by low adjustable-interest rates, US homeowners bought larger homes than many could afford. Mortgage companies bundled those loans into bond packages, selling them to investors worldwide. But the credit was too easy, and wages are stagnant for many. For homeowners who can’t handle automatic rate increases, loans go into default. Trying to sell homes and escape the trap, homeowners discover...