In The News

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...

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...

Wall Street Dodges a Bullet, How About Next One?

David Dapice September 17, 2008
Low interest rates prompted many investors and homeowners to pour savings into real estate and homes. Investors, convinced that prices could not fall, purchased debt packages including mortgages based on ample credit with little down payments. Prices for homes and investments soared, with the total value of US housing going from about $12 trillion in 2000 to more than $20 trillion in 2006. Now,...

Globalization and the Markets – Part II

Xu Sitao January 24, 2008
As anxiety spread about a possible recession hitting the US, stock-indexes went into sharp decline in Europe and Asia. Not surprisingly, worried investors scrutinize the Chinese stock market, as conventional wisdom suggests that China investments are the world’s next over-valued bubble. But analyst Steven Xu points out that the Chinese market could continue to grow, especially this year as China...

Globalization and the Markets – Part I

David Dapice January 22, 2008
Stock-market indexes have tumbled like dominos around the globe, exposing vulnerability of intricate economic connections. A crisis in one nation – and the panic – can quickly bounce from one country to the next. A major cause behind the stock-market plunges the world over are US financial instruments designed to spread and protect risk by including all manner of home mortgages, explains...

World Rides to Wall Street's Rescue

David Enrich January 17, 2008
Nations with hefty savings accounts, including Singapore and Saudi Arabia, are devoting billions to rescuing US banks in trouble, a result of the sub-prime mortgage crisis. “After flooding the world with capital that fed both economic growth and excess, battered U.S. financial institutions now are turning to countries and companies that not so long ago were suffering through their own disasters...

Summit Rhetoric Soars While Economy Sinks

Jeffrey E. Garten November 3, 2005
As the fourth annual Summit of the Americas get under way in Mar Del Plata, a pressing question lingers in the background: Are regional meetings truly worth the trouble? According to Jeffrey E. Garten, Juan Trippe professor in the practice of international trade and finance at The Yale School of Management, world leaders' efforts would be better spent at home, developing and implementing...