In The News

Financial Troubles Humble US

Bob Davis September 29, 2008
A credit crisis combined with immense US government, corporate and personal debt has left the country with a cash-flow problem. The Bush administration and US Congress present a $700 billion government rescue for flailing financial institutions, but that plan depends on someone purchasing US Treasury bills to pay the bill. If foreign investors were to reject such Treasury notes, interest rates...

Can Asia Rescue the Global Economy?

Linda Lim September 29, 2008
During the 1997-98 Asian financial crisis, US financial experts lectured Asians to accept good governance, transparency and free-market outcomes while avoiding drastic government intervention. Asian nations indeed tightened their belts, saving funds and seeking out safe havens for funds, including US Treasury bills. “This inflow of foreign lending conveniently enabled the Bush administration to...

Chinese Companies Face Uphill Path for Profit in India

Wei Gu September 26, 2008
Chinese manufacturers have long been able to manufacture products at a fraction of the cost of production elsewhere, setting the standard for production models in recent years. However, with a surplus of producers in their domestic market, Chinese companies look west to India. As journalist Wei Gu notes, India is both the alluring “prize” of emerging markets as well as a steppingstone to Western...

Paulson’s Plan Was Not a True Solution to the Crisis

Martin Wolf September 24, 2008
World creditors came to a sudden conclusion – that US deficit spending at the household and government levels is highly dangerous and unsustainable – and as a result hang on tight to any money they hold. Spending and lending has slowed drastically. Major institutions – lending agencies, investment banks, insurance firms – have come close to folding, and the Bush administration has reversed all...

Scrambling to Clean Up After a Category 4 Financial Storm

Steven Pearlstein September 24, 2008
The global economy is in crisis, with giant financial institutions folding, banks refusing to lend to other banks and some countries closing, changing stock-market rules and currencies dropping in value. “What we are witnessing may be the greatest destruction of financial wealth that the world has ever seen – paper losses measured in the trillions of dollars,” writes Steven Pearlstein for the...

Keeping Up With China's Olympic Shine – Part II

Alexandra Harney September 24, 2008
China has become known as factory to the world – as manufacturers invested in factories to take advantage of a labor force that accepts low wages and a government with minimal environmental standards and even less enforcement. Shoppers like low prices while the companies enjoy immense profits. China, indeed the entire world, pays a heavy price for manufacturing firms gathering in a place with...

Keeping Up With China's Olympic Shine – Part I

David Dollar September 22, 2008
Awarded the right to stage the 2008 Olympics, China set to work polishing cities and parks, designing grand architecture, and coaching citizens to be warm and welcoming hosts. No sacrifice was deemed too great for achieving a successful Olympics and sending a message worldwide about China’s can-do spirit. Perhaps more than anyone else, China’s people appreciated the end results, with the emphasis...