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...

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...

In Africa, Mortgages Boost an Emerging Middle Class

Michael M. Phillips July 26, 2007
A growing middle class in Africa requires housing, but political and economic instability often contribute to shortages. The wealthy can pay cash for homes, but financing home purchases is difficult in a country where only 16 percent of the population holds salaried jobs. In Zambia, the Lilayi project tackles the problem with a suburban development, funded by public and private investors, that...

Haves and Have-Nots of Globalization

William J. Holstein July 20, 2007
US companies that move part of their operations abroad continue to report big financial gains. Defense contractors like United Technologies, for example, report a spike in foreign sales and increased stock prices. Increasing numbers of multinational companies based in the US – including United Technologies, PepsiCo and Honeywell International – report that a majority of their sales are in foreign...

Congress Set to Tighten Scrutiny of Foreign Deals

Greg Hitt July 16, 2007
In the wake of the public backlash against the proposal that would have allowed Dubai Ports World, owned by the government of Dubai, to manage some US ports, the US Congress is expected to pass legislation that will tighten scrutiny of such investment deals. The legislation includes an extended 45-day examination period of companies owned by foreign governments and also requires the Committee on...

Taking Stock

July 5, 2007
As shares on the Chinese stock market fall due to a government decision to raise share transaction taxes, experts warn that the decline is only temporary. China’s share prices quadrupled over the past 18 months. Furthermore, the World Bank predicts that China’s economic growth for 2007 will reach 10.4 percent. But the Chinese market is not invincible. Perhaps the greatest risks to the Chinese...