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...1970s, though, Bali and Phuket were inundated by foreigners searching for unspoiled hideaways. Tourism soon dominated other industries, with hotels and nightclubs lining once empty beaches. By the 1990s, as overworked Hong Kong investment bankers and Europeans priced out of the Mediterranean real estate market began looking for getaway-home alternatives, the residential property markets in Bali and Phuket began to sizzle. On the Indonesian island, vacation homes mostly take the form of individually constructed villas or those built by smaller developers. The houses, usually designed in a Bali modern style that is now an architectural touchstone for tropical hotels...

Author: /time Magazine | Title: A Tale of Two Islands | 10/16/2008 | See Source »

...DELHI, INDIA Dream Over "No one dares mention the word shares in our house these days," whispers New Delhi software engineer Sandeep Goyal, "especially not when Dad's around." It's soon evident why. His father, a retired banker, is watching a religious sermon on a Sony flat-screen TV that, along with Sandeep's shiny new HP laptop, is a very visible sign of newfound affluence in the living room of the Goyals' modest home. "I warned him," the ex-banker says suddenly. "Never put all your eggs in one basket. He should have invested in government bonds...

Author: /time Magazine | Title: Now the Real Pain Begins | 10/16/2008 | See Source »

...this helps to explain why the dollar has been stronger lately. But with the U.S. Federal Reserve cutting interest rates again and the U.S. Mint running its printing presses overtime to fund rescue packages, won't the dollar tank soon? Probably not. As the Treasury Department's $700 billion bailout plan is implemented, banks should begin to be able to restructure their balance sheets and regain the capacity to make loans at interest rates that will be attractive at home and abroad. While a U.S. recession looks unavoidable, the stabilization of the financial system should allow a recovery to begin...

Author: /time Magazine | Title: Why the Buck Has Pluck | 10/16/2008 | See Source »

...Moreover, while currency markets are complex ecosystems, it seems unlikely that countries such as China and Japan that have already loaned America trillions will stop buying U.S. government debt any time soon. They have relatively few tools at their disposal to keep their economies on track other than tending to the dollar exchange rate. China recognizes it has little choice but to go on financing the ballooning U.S. budget deficit by expanding its foreign-exchange reserves from $1.8 trillion to $2.3 trillion over the next 18 months...

Author: /time Magazine | Title: Why the Buck Has Pluck | 10/16/2008 | See Source »

...want to hear and leading them where they don't want to go. It's not comforting people about their current situation and reassuring them it will get better. It's telling them that the situation is likely to get worse and that only their efforts can determine how soon it will start getting better. Astringent leadership is Churchill calling on Britons to "brace ourselves to our duties...

Author: /time Magazine | Title: The Leader We Deserve | 10/16/2008 | See Source »

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