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...with imprudent lending driving out prudent lending. This tends to occur as responsible institutions see their market share fall while those of irresponsible institutions rise, and decide to emulate the reckless practices they previously eschewed. The phenomenon was particularly prevalent in the mortgage market. Central bankers cannot escape censure, either. In his memoirs Alan Greenspan, former chairman of the U.S. Federal Reserve, writes: "I was aware that the loosening of mortgage credit terms for subprime borrowers increased financial risk, and that subsidized home-ownership initiatives distort market outcomes. But I believed then, as now, that the benefits of broadened home...

Author: /time Magazine | Title: Back to Reality | 10/1/2008 | See Source »

...Wildcats claimed the fourth, 25-22. Harvard lost the first two points of the fifth set but quickly evened up the tally, scoring two points off of junior Chelsea Ono Horn’s kill and subsequent ace. After several attack errors on both side of the court prevented either team from building much momentum, the Crimson used a Comrie kill to pull ahead of New Hampshire. With Harvard leading 14-12, Cormie closed out the game with her sixteenth kill of the night to add another notch to the Crimson’s record. “This game...

Author: By Stephanie Krysiak, CONTRIBUTING WRITER | Title: Crimson Narrowly Edges Wildcats | 10/1/2008 | See Source »

...Shoot the Messenger If you want people to support the radical idea of rescuing rich investment bankers, don't send a rich, former investment banker (Henry Paulson) to convince them. And don't send a discredited, lame-duck President, either. As in normal life, people are more likely to believe the advice of someone they trust. There aren't many well-known experts in this field who aren't rich, but even Warren Buffett would have brought less baggage to the process than Bush...

Author: /time Magazine | Title: Why Aren't Americans Buying the Bailout? | 10/1/2008 | See Source »

...both selling theories about what kind of leader America needs in the 21st century. But the financial crisis yanked their notions out of the lab and tested them in real time, under a magnifying glass. And now we have a much clearer idea of what we would risk with either...

Author: /time Magazine | Title: The Candidates' Test of Leadership | 9/30/2008 | See Source »

...that such rhetoric will be matched by action. Al-A'ghayde says that won't happen because the SOIs "are not armed militias." Still, both the U.S. military and the Iraqi government know they cannot afford to let the SOIs fall through any cracks and feel alienated from either party...

Author: /time Magazine | Title: Disbanding the Sunni Patrols: A Backlash Brewing? | 9/30/2008 | See Source »

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