In The News

June 4, 2010
Nations bordering North Korea would prefer less isolation, belligerence and unpredictability. But abrupt collapse of the current regime could be equally dangerous. Any loss of control in a nation with such pronounced poverty, as detailed in this article from the Economist, could destabilize South Korea and China, analysts suggest, with refugees pouring over borders, nuclear weapons unsecured, as...
Pierre Paulden June 3, 2010
Trust breaks down in banking when investors question whether deposits are safe and when banks worry about loan repayment. Banks only keep a percentage of cash on hand, and a lack of trust can disrupt efficient lending and borrowing with that limited cash. Global banks could have a capital deficit of $1.5 trillion, by some reports, and troubled banks could request additional government assistance...
Jeffrey E. Garten June 3, 2010
Markets around the globe analyze and quantify risk. But governance and politics present too much uncertainty, and investors are increasingly troubled by governments’ inability to address pressing problems and coordinate responses to problems including climate change, massive debt of any one country and other imbalances. Because of countless interconnections through labor, capital, environment,...
Bill Sasser June 1, 2010
Offshore oil drilling has enriched communities along the Gulf of Mexico since the 1970s. An explosion ripped apart undersea pipes in April and has since left oil gushing and polluting waters and beaches that have fed those same communities with seafood for centuries. One representative called the seeping oil in gulf waters “a slow-motion tragedy,” anticipating decades of problems and cleanup....
Scott Snyder May 27, 2010
North Korea – impoverished and isolated – depends on others for basic needs and lashes out with a series of provocations, most targeting economically vibrant South Korea. The most recent was the March 26 firing of a torpedo at the ROK Navy corvette Cheonan in disputed waters; 46 crew members died. For many years, South Korea aimed for good relations with a sunshine policy, explains Scott Snyder,...
Sabrina Tavernise May 27, 2010
Pakistan and the US are allies in a war against extremism in Afghanistan, with the US providing more than $1 billion in annual aid, but mutual trust remains low. A US citizen originally from Pakistan was accused of placing a failed car bomb in New York’s Times Square. But many in Pakistan are convinced that his plan was devised inside the US. “Conspiracy theory is a national sport in Pakistan,...
Emily Maltby May 26, 2010
Any regulatory change creates winners and losers. Because of the strong trade relationship between China and the US, consumers and businesses in either country must adjust to changes from either government – and that includes the possibility of currency revaluation. Companies that export to China will benefit from revaluation, but the many small US businesses that depend on China for consistent...