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	<title>Business &#38; Money &#187; Roya Wolverson &#124; TIME.com</title>
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		<title>Business &#38; Money &#187; Roya Wolverson &#124; TIME.com</title>
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		<title>Advertising&#8217;s Next Big Thing: Walking Product Placements</title>
		<link>http://business.time.com/2013/04/05/advertisings-next-big-thing-walking-product-placements/</link>
		<comments>http://business.time.com/2013/04/05/advertisings-next-big-thing-walking-product-placements/#comments</comments>
		<pubDate>Fri, 05 Apr 2013 18:25:51 +0000</pubDate>
		<dc:creator>Roya Wolverson</dc:creator>
				<category><![CDATA[Advertising]]></category>
		<category><![CDATA[Companies & Industries]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=76576</guid>
		<description><![CDATA[Social media purists have spent years worrying about the rise of advertising on Twitter and Facebook. But most of the kvetching has focused on the conduct of Facebook and Twitter, which have been blasted for prioritizing sponsored content  by tinkering with the algorithms that position content on your newsfeed. But what a lot of people don&#8217;t realize is that companies are way past that kind of advertising on social media. Yes, advertisers are buying ads to bump up their promotions on your newsfeed. And yes, bloggers are feeling forced to buy digital ads from Facebook and Twitter to keep their stuff at the top of the pile on social media. But did you know that companies are also going directly to bloggers and paying them hundreds of thousands of dollars to write about their products and promote them on their blogs? It&#8217;s the next big thing in digital marketing, but you may not have noticed it because the promotions are weaved seamlessly into the daily fodder of popular bloggers, especially in the fashion, design and food worlds. (MORE: The Hidden Cost of Tax Refunds) It&#8217;s an issue the Federal Trade Commission tried to tackle recently by issuing rules requiring that bloggers label their promotional work. But in the story I wrote for this week&#8217;s print edition, some bloggers told me they don&#8217;t do disclosures because it looks awkward and doesn&#8217;t jive well with the tone of their blog. You can read more about the phenomenon here.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=76576&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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	<primary_category>Advertising</primary_category><primary_category_link>http://business.time.com/category/companies-industries/advertising-companies-industries/</primary_category_link>
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			<media:title type="html">royaclare</media:title>
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		<title>Are Consumers Getting Tired of Fast Fashion?</title>
		<link>http://business.time.com/2013/03/22/are-consumers-getting-tired-of-fast-fashion/</link>
		<comments>http://business.time.com/2013/03/22/are-consumers-getting-tired-of-fast-fashion/#comments</comments>
		<pubDate>Fri, 22 Mar 2013 09:45:58 +0000</pubDate>
		<dc:creator>Roya Wolverson</dc:creator>
				<category><![CDATA[Retail]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=75057</guid>
		<description><![CDATA[Last year, discount meccas like Dollar General and Dollar Tree scrambled to expand into hundreds of new stores stuffed with standard recessionary fare: cheap made-in-China toys, synthetic tee-shirts, and flimsy housewares. Fast fashion retailers like H&#38;M, Uniqlo, and Zara, which churn out the latest styles at record speed, also fared well. But there are signs that some consumers are growing weary of rickety furniture and clothing that falls out of fashion &#8212; or falls apart &#8212; after a single season. In recent months, clothiers like the Gap and H&#38;M have started rolling out pricier collections that boast higher quality. Gap&#8217;s latest lines play up the touch and feel of its fabrics and simple cuts. Last spring, H&#38;M launched an eco-wear line dubbed the &#8220;conscious collection,&#8221; and its new COS stores feature apparel with &#8220;timeless design that lives beyond the season.&#8221;  Meanwhile, Japan&#8217;s minimalist retailer Muji, whose corporate motto is &#8220;this will suffice,&#8221; is expanding its New York empire to the West Coast. (MORE: Epic Retail Fail: Where Did Target + Neiman Marcus Collection Go Wrong?) Then there are the hardcore challengers to big-box fast-fashion retail: the small e-commerce sites with a do-gooder ethos that have quietly cultivated online fan bases from the ground up. The latest of these is Everlane, the San Fransisco-based e-retailer that just raised over $100,000 on Kickstarter to expand from the U.S. into Canada. In November, the company protested mass consumption by blacking out its site on Black Friday. Everlane&#8217;s mantra—&#8220;buy less, buy better&#8221;— echos other popular e-retail newcomers like eyeglass maker Warby Parker and men&#8217;s apparel maker Bonobos. Everlane offers higher quality goods at lower prices than traditional luxury retailers by sourcing straight from the manufacturer and avoiding the overhead costs that come with brick-and-mortar stores. The company, started by a motley crew of business and fashion industry veterans, created online buzz with a viral infographic that lays bare the chain of markups that make fashion so expensive. But beyond the catchy marketing, the &#8220;buy less, buy better&#8221; strategy sometimes seems more like capitalist fluff than Marxian utopia. Young<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=75057&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>1</slash:comments>
	<primary_category>Retail</primary_category><primary_category_link>http://business.time.com/category/companies-industries/retail-big-companies/</primary_category_link>
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			<media:title type="html">royaclare</media:title>
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		<title>The Best Age for a Start-Up Founder</title>
		<link>http://business.time.com/2013/03/14/ask-the-expert-the-best-age-for-a-start-up-founder/</link>
		<comments>http://business.time.com/2013/03/14/ask-the-expert-the-best-age-for-a-start-up-founder/#comments</comments>
		<pubDate>Thu, 14 Mar 2013 11:00:44 +0000</pubDate>
		<dc:creator>Roya Wolverson</dc:creator>
				<category><![CDATA[Ask the Expert]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=74647</guid>
		<description><![CDATA[What is the ideal age at which to start a business? Submitted by TIME.com commenter aplotkowski3 There’s no question that starting a business is easier when you’re younger. The fewer nonwork responsibilities you have, the more likely you are to pour your blood, sweat and tears into a new venture. But that doesn’t mean you should leave school or your job to start a company just because you’re young. Venture capitalists often favor fresh meat. Michael Moritz of Sequoia Capital, one of Silicon Valley’s biggest VC firms, has gushed about how entrepreneurs in their mid- to late 20s “see no boundaries, see no limits, see no obstacle that they can’t hurdle.” Peter Thiel, a co-founder of PayPal and an early investor in Facebook, launched a $100,000 fellowship in 2010 for entrepreneurs under 20—that is, teenagers—to encourage “promising young people not to wait on their ideas.” The average age of the entrepreneurs funded by Y Combinator, an elite business accelerator, is 26. (Ask the Expert: Submit Your Business and Economics Questions Here) But part of the reason youth culture reigns in Silicon Valley is that the region is dominated by Internet firms, a relatively new sector for which start-up costs are low and only minimal prior business expertise is necessary. Venture capitalists may also like working with young people because they are more impressionable and have fewer bad habits to unlearn. Still, start-ups in some industries, such as biotech and business software, gain an edge from the experience that comes with a founder’s age. According to research by Vivek Wadhwa, an academic and tech entrepreneur, and the Kauffman Foundation, the average age of successful start-up founders in these and other high-growth industries was 40. And high-growth start-ups are almost twice as likely to be launched by people over 55 as by people 20 to 34. If you have the financial resources, the right network and, most important, a great idea, age ain’t nothing but a number. Ask the Expert: When Will the Federal Debt Cause a Greece-Like Crisis in the U.S.?<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=74647&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Ask the Expert</primary_category><primary_category_link>http://business.time.com/category/ask-the-expert/</primary_category_link>
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			<media:title type="html">royaclare</media:title>
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		<title>Why Warren Buffett Loves Ketchup, Plain and Simple</title>
		<link>http://business.time.com/2013/02/15/why-warren-buffett-loves-ketchup-plain-and-simple/</link>
		<comments>http://business.time.com/2013/02/15/why-warren-buffett-loves-ketchup-plain-and-simple/#comments</comments>
		<pubDate>Fri, 15 Feb 2013 13:00:48 +0000</pubDate>
		<dc:creator>Roya Wolverson</dc:creator>
				<category><![CDATA[Food and Beverage Industry]]></category>
		<category><![CDATA[Heinz]]></category>
		<category><![CDATA[Warren Buffett]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=71301</guid>
		<description><![CDATA[For many Americans, Warren Buffett isn&#8217;t just one of the world&#8217;s greatest investors. He&#8217;s a folksy grandpa with a mysterious wizard&#8217;s touch. Everything about him — his upbringing, employees, travels, personal life, investing style, even his home decor — has been picked over for insights about what exactly goes into his pixie dust. (There have been two dozen books published on him in the past year alone, according to the Financial Times). Naturally, his $28 billion purchase of H.J. Heinz with U.S.-Brazilian private-equity group 3G Capital (owner of Burger King and a piece of Anheuser-Busch InBev) on Feb. 14 caused a lot of chatter. But the move is no mystery; it&#8217;s classic Buffett, and here&#8217;s why. Buffett lauded Heinz for good management and for making &#8220;great-tasting products.&#8221; No surprise that the &#8220;Sage of Omaha&#8221; is a big burger eater. But that&#8217;s hardly enough to sway Buffett the number cruncher. As market watchers know, he&#8217;s considered a value investor — someone who buys companies when they&#8217;re cheap — which is a strategy he learned from his Columbia Business School professor Benjamin Graham, author of the geeky classic The Intelligent Investor. He&#8217;s also partial to the market&#8217;s plain vanilla: low-risk companies with rock-solid balance sheets. In this case, Heinz didn&#8217;t come cheap. Buffett&#8217;s Berkshire Hathaway and 3G paid a 20% premium for Heinz&#8217;s shares, which makes them pricier than those of most packaged-foods companies (aside from a few elite brands like Nestlé and Hershey). For Buffett, the real value of Heinz was its steady stream of cash and safe strategy. (MORE: Comcast&#8217;s NBC Universal Deal: As One Media Era Ends, Another Begins) Why not buy into other steady goers in the food business like Kraft or ConAgra? In the world of staple products, Kraft has proved risky for Buffett&#8217;s taste. He chastised the company for buying Cadbury in 2010. To free up cash for the purchase, Kraft sold its frozen-pizza business (DiGiorno, Tombstone and Jack&#8217;s) to Nestlé. Frozen pizzas were a big winner during the recession, but Kraft wanted a bigger piece of fast-growing emerging markets, where Cadbury is a big player. Kraft<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=71301&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/02/15/why-warren-buffett-loves-ketchup-plain-and-simple/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>Food and Beverage Industry</primary_category><primary_category_link>http://business.time.com/category/companies-industries/food-and-beverage-industry/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2013/02/148285887.jpg?w=240</featured_image>
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			<media:title type="html">Warren Buffett</media:title>
		</media:content>

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			<media:title type="html">royaclare</media:title>
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		<title>The Future of Davos: Is a Hipper World Forum on Its Way?</title>
		<link>http://business.time.com/2013/01/27/the-future-of-davos-is-a-hipper-world-forum-on-its-way/</link>
		<comments>http://business.time.com/2013/01/27/the-future-of-davos-is-a-hipper-world-forum-on-its-way/#comments</comments>
		<pubDate>Sun, 27 Jan 2013 16:38:09 +0000</pubDate>
		<dc:creator>Roya Wolverson</dc:creator>
				<category><![CDATA[Davos]]></category>
		<category><![CDATA[disruptors]]></category>
		<category><![CDATA[hub culture]]></category>
		<category><![CDATA[World Economic Forum]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=68847</guid>
		<description><![CDATA[If Davos is getting old, as I speculated on this blog earlier this week, the question is, What will take its place? I spent my final hours at the World Economic Forum trying to suss that out. The New Yorker’s John Cassidy, who was not invited to Davos this year, posits that the WEF is a positional good — one whose value &#8220;is mostly a function of its desirability to others.&#8221; If so, the naysayers who pooh-pooh the event and wish it would go away &#8220;have the power to make it do precisely that — by ignoring it,&#8221; muses the Financial Times’ John McDermott. Another of the many media savants left off Klaus Schwab&#8217;s invitation list this year, McDermott farcically proposed organizing his own version of Davos in his backyard in London. (MORE: Davos Wisdom, 2013: Five Lessons from the Global Forum) McDermott may be on to something. All along the famed promenade that runs through town and into the WEF&#8217;s central Congress Center, globally minded organizations have been chipping away at the official WEF itinerary, setting up shop in empty retail spaces and dormant art galleries to host their own events and encourage high-minded side dealings. For example, for several years, the social-networking group Hub Culture has set up camp in an airy meeting space across the street from the WEF beehive to host brainstorming and dealmaking sessions between executives of companies like Nissan and Hertz. One of Hub Culture&#8217;s missions is to bring the backroom dealmaking Davos is known for into the open. For more on what that means, watch this video. The social network is also an evangelist for peer-to-peer finance, which allows individuals and companies to trade outside the erratic global monetary system through virtual currencies (kooky, yes, but even the European Central Bank has paid this some attention). So while global political leaders and hedge-funders sat inside the WEF fretting about the threats of competitive currency devaluations and big banks&#8217; unwillingness to lend, Hub Culture was across the street extolling the virtues of buying into its virtual currency, Ven, to major corporations like BlackBerry and<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=68847&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Davos</primary_category><primary_category_link>http://business.time.com/category/davos/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2013/01/biz-davos-0127.jpg?w=240</featured_image>
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			<media:title type="html">People stand in the Swiss resort at the World Economic Forum Annual Meeting 2013 in Davos, Jan. 26, 2013.</media:title>
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			<media:title type="html">royaclare</media:title>
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		<title>Is the Scene At Davos Getting Old?</title>
		<link>http://business.time.com/2013/01/25/is-the-scene-at-davos-getting-old/</link>
		<comments>http://business.time.com/2013/01/25/is-the-scene-at-davos-getting-old/#comments</comments>
		<pubDate>Fri, 25 Jan 2013 20:04:45 +0000</pubDate>
		<dc:creator>Roya Wolverson</dc:creator>
				<category><![CDATA[Davos]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=68360</guid>
		<description><![CDATA[Davos has always been maligned for being a playground for elites. The ambrosial London Mayor Boris Johnson described the event this year as &#8220;a constellation of egos involved in orgies of adulation.&#8221; Of course, exclusivity can work in your favor when trying to build an intellectual global brand. But could the old-world elitism that Davos thrives on be losing its allure? Accusations of hollow hobnobbing were no big deal a decade ago when the conference ruled the roost and there were few alternatives. But in recent years the competition for ideas conferences—TED, the Aspen Ideas Festival, South by Southwest, and the Clinton Global Initiative, to name a few—has heated up. As a result, one of the biggest questions among the under-40 crowd this year isn&#8217;t &#8220;Are we changing the world here?&#8221; but &#8220;What is Davos about?&#8221; Few Davosians would argue that this event, or any big conference for that matter, can really jolt the needle on mammoth issues like China&#8217;s growth problem, global warming, or the grand mission of &#8220;improving the state of the world&#8221; (which is the conference&#8217;s stated goal). But seasoned Davos-goers in the business world tend to justify the $40,000 price tag of attending as the cost of efficient networking. &#8220;I can meet with half my CEO clients here in half a day. At home that would take me at least half a year,&#8221; one executive told me. (MORE: Are Today&#8217;s Business Leaders Too Afraid of Risk?) That may be the case if your clients are mature blue-chip corporations like Coca-Cola or Unilever, but not if they&#8217;re wunderkinds like Facebook, Twitter, or Google. Top executives from all three companies are notably absent this year. No doubt Klaus Schwab, the founder of the World Economic Forum, was irked by the decision of Davos regular Eric Schmidt to skip out and cancel his company&#8217;s usual blowout bash, a marquee event at the Steigenberger Belvedere Hotel where the literati and glitterati share the dance floor. Without bright faces to set the scene at Davos, the fresh corporate blood needed to pay the conference&#8217;s bills<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=68360&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Davos</primary_category><primary_category_link>http://business.time.com/category/davos/</primary_category_link>
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			<media:title type="html">royaclare</media:title>
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		<title>Q&amp;A: Why U.S. Companies Fail to Innovate</title>
		<link>http://business.time.com/2013/01/24/qa-why-u-s-companies-fail-to-innovate/</link>
		<comments>http://business.time.com/2013/01/24/qa-why-u-s-companies-fail-to-innovate/#comments</comments>
		<pubDate>Thu, 24 Jan 2013 18:03:05 +0000</pubDate>
		<dc:creator>Roya Wolverson</dc:creator>
				<category><![CDATA[Davos]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=68254</guid>
		<description><![CDATA[Davosians have been raving about Harvard professor and innovation guru Clayton Christensen’s performance on our TIME Davos panel “Leading Through Adversity” on Jan. 23. So I caught up with him in the World Economic Forum’s bustling Congress Center to dig deeper into the root causes of the innovation lull in the U.S. Why are answers to what’s causing risk-aversion in the economy so elusive? There’s no consensus — both inside of companies and inside the economy — because there’s no common language or agreed-upon way to frame this problem. Often, in investments and innovation of any kind, if you ask the question “Should we do it?” you never get the right answer. Management teams aren’t good at asking questions. In business school, we train them to be good at giving answers. For example, your industry, media, is being badly disrupted. And the question is not “Should we shut the business down?” It’s “Where else in the market are people making money?” And if you don’t ask that question then the conclusion is, “We have to keep the existing business.” In education, at Harvard Business School, we’re getting disrupted by online learning, but if we don’t ask the question “Where in the value chain in the future is money going to be made?” we view online learning as a threat rather than an opportunity. (MORE: Davos Crib Sheet: Top Global Risks of 2013) In which industries are companies asking the right questions? It isn’t industry-specific. There are singular bright lights. In media, the Washington Post asked really good questions when my first book, The Innovator&#8217;s Dilemma, emerged. Businesses that distribute information and news are in the business of training and teaching people. So WaPo bought Kaplan and a bunch of other businesses where you can learn on the job, and those have become so successful that whether or not WaPo makes money is irrelevant. In contrast, almost all the other daily newspapers never asked the question, and they just missed the opportunity to grow. At Harvard Business School, we’re facing a<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=68254&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/01/24/qa-why-u-s-companies-fail-to-innovate/feed/</wfw:commentRss>
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	<primary_category>Davos</primary_category><primary_category_link>http://business.time.com/category/davos/</primary_category_link>
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			<media:title type="html">royaclare</media:title>
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		<title>Are Today&#8217;s Business Leaders Too Afraid of Risk?</title>
		<link>http://business.time.com/2013/01/23/are-todays-business-leaders-too-afraid-of-risk/</link>
		<comments>http://business.time.com/2013/01/23/are-todays-business-leaders-too-afraid-of-risk/#comments</comments>
		<pubDate>Wed, 23 Jan 2013 15:41:38 +0000</pubDate>
		<dc:creator>Roya Wolverson</dc:creator>
				<category><![CDATA[Davos]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Europe]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=67748</guid>
		<description><![CDATA[During this year&#8217;s TIME Davos panel &#8220;Leading through Adversity&#8221; &#8212; video highlights of which you can watch below &#8212; TIME International editor Jim Frederick asked some of the world&#8217;s biggest players in the global economy a simple question: Are leaders too risk-averse in their efforts to bring the economy back on track? It&#8217;s not an unfamiliar query for the likes of Walmart CEO Mike Duke, Cisco CEO John Chambers, and Martin Senn, CEO of Zurich Insurance Group. Indeed, political gridlock has been gripping economies from the U.S. to Germany to Japan, making uncertainty a defining theme of this year&#8217;s Davos chatter. As Eurasia Group&#8217;s Ian Bremmer said at a recent Thomson Reuters event in New York: For &#8220;emerging markets in general, the level of political instability is underpriced for 2013.&#8221; Aside from political risks abroad, corporate executives have taken a lot of heat for using uncertainty about taxes and regulation back home as an excuse to put off investing in jobs and growth. The TIME panel shed some light on the root causes of corporate dithering. Here are some of the themes that emerged: Innovations that don&#8217;t create jobs pay off more quickly Clayton Christensen, the Harvard economist famed for his research on disruptive innovation, said there are three types of innovation: 1) empowering innovations, which transform products that were historically complicated and accessible only to the rich; 2) sustaining innovations that make products better but don&#8217;t create new jobs (take for instance, Toyota&#8217;s invention of the Prius); and 3) efficiency innovations that reduce jobs in the economy. (MORE ON DAVOS: Four Keys to Decoding the World Economic Forum) Christensen explained that, even in an era of cheap cash, companies are still leaning on efficiency innovations because they pay off in the short-term (2 to 3 years) whereas empowering innovations take 5 to 10 years to pay off. Meanwhile, companies have felt pressured to follow the efficiency innovations coming out of Asia, according to panelist Anand Mahindra, CEO of India&#8217;s Mahindra and Mahindra. In India, &#8220;innovation is about a philosophy<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=67748&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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	<primary_category>Davos</primary_category><primary_category_link>http://business.time.com/category/davos/</primary_category_link>
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		<title>Four Keys to Decoding the World Economic Forum</title>
		<link>http://business.time.com/2013/01/23/four-keys-to-decoding-the-world-economic-forum/</link>
		<comments>http://business.time.com/2013/01/23/four-keys-to-decoding-the-world-economic-forum/#comments</comments>
		<pubDate>Wed, 23 Jan 2013 08:00:00 +0000</pubDate>
		<dc:creator>Roya Wolverson</dc:creator>
				<category><![CDATA[Davos]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[Economics & Policy]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=67428</guid>
		<description><![CDATA[As we speak, business leaders and heads of state are gathering in Davos, Switzerland, for their annual dose of brainstorming and cocktail partying. Bloggers have been placing bets on whether the U.S. or hobbled Europe will get more attention, and whether Wall Street darlings like JPMorgan Chase&#8217;s Jamie Dimon and Lloyd Blankfein of Goldman Sachs will have it easier this year than last. For readers following the event (and journalists covering it), Davos can be an overwhelming cacophony of competing themes and ideas. So here are four things that may help make sense of the weeklong media flurry ahead: You Aren&#8217;t Invited (and Neither Am I) In case you missed this lovely Davos decoder by Nick Paumgarten in the New Yorker last year, it&#8217;s a sharp assessment of what Davos is really like from the inside — or outside, depending on your status as a Davos attendee. Writes Paumgarten: Davos is an onion, a layer cake, a Russian doll. &#8216;Never feel that you’re out of the loop, because the loop is you,&#8217; Platon, the photographer, assured me, by which he meant that Davos is whatever experience you are having there. But could he be trusted? It was only his second Davos. Yossi Vardi, an Israeli tech investor and an 18-year Davos veteran, said, &#8216;What you see here, in the Congress Center, is just 20% of the action.&#8217; Over the next few days, there will be much chatter about the official remarks of headliners like Italian Prime Minister Mario Monti, Christine Lagarde of the International Monetary Fund and economic prophesying by the likes of Stephen Schwarzman of the Blackstone Group. But don&#8217;t expect all the earth-shattering ideas to come out of scheduled events (although I do expect some interesting fodder from Wednesday&#8217;s TIME panel featuring, among others, Walmart&#8217;s Mike Duke and Harvard&#8217;s Clayton Christensen). As the Financial Time’s Howard Davies points out, many earthshakers at Davos don&#8217;t really want to be there and do their best to say very little. &#8220;George Soros, who is here as usual, told me he hates it, but always attends,&#8221;<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=67428&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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	<primary_category>Davos</primary_category><primary_category_link>http://business.time.com/category/davos/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2013/01/wp_89b2c0679b0742debcbe353261d.jpg?w=240</featured_image>
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			<media:title type="html">Switzerland Davos Forum</media:title>
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		<title>High and Low: Online Flash Sales Go Beyond Fashion to Survive</title>
		<link>http://business.time.com/2012/10/25/high-and-low/</link>
		<comments>http://business.time.com/2012/10/25/high-and-low/#comments</comments>
		<pubDate>Thu, 25 Oct 2012 10:17:51 +0000</pubDate>
		<dc:creator>Roya Wolverson</dc:creator>
				<category><![CDATA[Companies & Industries]]></category>
		<category><![CDATA[Small Business]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=59002</guid>
		<description><![CDATA[The sample sale is one of those classic New York experiences: an exhilarating mix of rarefied luxury and down-and-dirty bargain hunting. Lovers of haute couture line up at some unglamorous hour for the privilege of fighting in a crowded showroom over the last size-four Alessandro Dell’Acqua leather jacket. When Gilt pioneered the online flash sale in the U.S. in 2007, it managed to re-create the backdoor chic of a sample sale without the pushing and shoving. The site lures in-the-know shoppers into private online sales of top designer clothing that are over in a flash, lasting only a day or two. Instead of sparring with aggressive shoppers, luxury lovers can claim that sacred pair of Prada heels from the comfort of their living room. Gilt’s success has attracted dozens of imitators, and flash sales have turned into a booming $2 billion business. All these slickly produced websites, including HauteLook, Rue La La and Fab, follow the same model of enticing consumers to buy high-end merchandise through limited-time online events. The flash-sale industry has moved well beyond its high-fashion roots, selling everything from baby carriages to kitchen utensils to exotic vacations. Even Gilt, home of Hermès and Moschino, has begun selling gym passes and kitchen appliances. “There are only so many A brands in the world,” says Gilt CEO Kevin Ryan. “If we’re going to do 20 sales a day, we can’t do all A brands.” Will more-style-conscious consumers follow them to the B list? (MORE: The New Shape of Retail) While the industry maintains a high-gloss veneer of luxury, most flash sales are really recession businesses. Many sites make their living peddling luxury’s leftovers. In their infancy, some sites admitted shoppers only by invitation to heighten the sense of exclusivity. That appealed to high-end brands looking to off-load their overstock discreetly rather than dumping it at dowdier shops like Marshalls and T.J. Maxx. To maintain a steady stream of inventory, some flash-sale companies buy merchandise up front from wholesalers or retailers for immediate sale or squirrel it away in warehouses for the next season.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=59002&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2012/10/25/high-and-low/feed/</wfw:commentRss>
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	<primary_category>Small Business</primary_category><primary_category_link>http://business.time.com/category/small-business/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/10/bfab_1105.jpg?w=240</featured_image>
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			<media:title type="html">Fab</media:title>
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		<title>Need for Speed</title>
		<link>http://business.time.com/2012/07/26/need-for-speed/</link>
		<comments>http://business.time.com/2012/07/26/need-for-speed/#comments</comments>
		<pubDate>Thu, 26 Jul 2012 19:53:44 +0000</pubDate>
		<dc:creator>Roya Wolverson</dc:creator>
				<category><![CDATA[Ideas for Business]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=45005</guid>
		<description><![CDATA[Fashion can do a lot for the public personas of politicians&#8217; wives. Jackie Kennedy&#8217;s iconic pillbox hats, boxy crew cardigans and bouffant hairstyle inspired women around the world to imitate her glamorous look. Today&#8217;s political spouses still sport Jackie O.&#8211;level bling; take, say, the $2,000 Sophie Theallet sundress Michelle Obama wore on her Hawaiian vacation or Ann Romney&#8217;s $990 Reed Krakoff bird-print blouse worn in a recent television interview. But in the wake of the Great Recession, style hawkers have been quick to point out the more affordable items those women are donning too. Thriftier threads can make high-rolling politicos and their wives seem more relatable. Kate Middleton&#8217;s first postnuptial outing with Prince William, in a $90 cornflower blue shift from Spanish retailer Zara, endeared her to Middle England. In the U.S., Michelle Obama&#8217;s Today show appearance in an H&#38;M polka-dot ditty had a similar effect. But the rise of bercheap apparel chains like Zara, H&#38;M and Uniqlo, which are popularly called fast-fashion retailers for their ability to churn out modish styles at record speed, also carries big costs for U.S. apparel makers and the environment. In recent years, cut-rate European and Japanese clothiers have raked in more customers and bigger profits than traditional U.S. apparel companies like Gap and American Eagle Outfitters by mass-producing lower-quality digs that keep pace with runway styles. That&#8217;s led more shoppers to cast aside hefty chunks of their wardrobes as fresh looks come up, which leads to more waste. The fashion frenzy has picked up speed since the financial crisis, as traditional U.S. clothiers try to win back trend seekers on a budget from more-agile competitors. Slow goers like Gap and Macy&#8217;s are swapping out big orders of staples like T-shirts for smaller, more frequent batches of hot knickknacks like handbags and hair bobbles. But with wages rising in China, the fast-fashion model&#8211;which relies on higher sales volumes and slimmer profit margins&#8211;could hurt American clothing companies and jobs, since they rely more on Chinese manufacturers. Unlike with European brands that can source quickly from<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=45005&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>2</slash:comments>
	<primary_category>Ideas for Business</primary_category><primary_category_link>http://business.time.com/category/ideas-for-business/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/07/360_bfashion_0806.jpg?w=240</featured_image>
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			<media:title type="html">Royal Wedding - The Duke and Duchess of Cambridge Leave For Their Honeymoon</media:title>
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			<media:title type="html">royaclare</media:title>
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		<title>At Davos, Why Is No One Talking About the Poor?</title>
		<link>http://business.time.com/2012/01/28/at-davos-why-is-no-one-talking-about-the-poor/</link>
		<comments>http://business.time.com/2012/01/28/at-davos-why-is-no-one-talking-about-the-poor/#comments</comments>
		<pubDate>Sat, 28 Jan 2012 16:55:40 +0000</pubDate>
		<dc:creator>Roya Wolverson</dc:creator>
				<category><![CDATA[Davos]]></category>
		<category><![CDATA[globalization]]></category>
		<category><![CDATA[Poor]]></category>
		<category><![CDATA[WEP]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=22586</guid>
		<description><![CDATA[Unfair trade practices and poor working conditions in the developing world, issues that dominated the WEF agenda a decade ago, haven't been raised at all. Instead, the conversation is acutely focused on the plight of the Western worker.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=22586&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>28</slash:comments>
	<primary_category>Davos</primary_category><primary_category_link>http://business.time.com/category/davos/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/01/wef.jpg?w=240</featured_image>
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			<media:title type="html">wef</media:title>
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			<media:title type="html">royaclare</media:title>
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		<title>Why Manufacturing Can&#8217;t Solve The Jobs Problem</title>
		<link>http://business.time.com/2012/01/27/why-manufacturing-cant-solve-the-jobs-problem/</link>
		<comments>http://business.time.com/2012/01/27/why-manufacturing-cant-solve-the-jobs-problem/#comments</comments>
		<pubDate>Fri, 27 Jan 2012 13:00:29 +0000</pubDate>
		<dc:creator>Roya Wolverson</dc:creator>
				<category><![CDATA[Davos]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Jobs]]></category>
		<category><![CDATA[jobs]]></category>
		<category><![CDATA[Obama]]></category>
		<category><![CDATA[State of the Union]]></category>
		<category><![CDATA[trade barrier]]></category>
		<category><![CDATA[unemployment]]></category>
		<category><![CDATA[World Economic Forum]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=22479</guid>
		<description><![CDATA[Here in snowy Davos, the topic of job creation has been about as popular as the passed canapés and free champagne.  Not surprisingly, President Obama’s latest jobs proposals &#8212; a combination of taxing outsourcing corporations and reviving U.S. manufacturing &#8212; haven’t been as popular. It’s not hard to see why. Among other things, Obama’s State of the Union speech Tuesday drove home the idea that U.S. industries need more protection. “Over a thousand Americans are working today because we stopped a surge in Chinese tires,” he said in his speech. That’s all fine and good if your goal is to hold on to U.S. manufacturing jobs. But it’s not going to solve the country’s overall unemployment problem. And in the end, it may cost the American consumer more than those jobs are worth. (MORE: Smack Down at Davos: Merkel and Soros Spar on the Euro’s Future) For one thing, raising trade barriers on imported goods like tires makes tire-buying more expensive for American consumers, which, as Matthew Yglesias points out, only undermines those consumers’ ability to spend elsewhere. It also provokes countries like China to raise trade barriers on U.S. goods, which makes the job of increasing U.S. exports and export-related jobs even harder. Even if protections did save some manufacturing jobs, they wouldn&#8217;t be enough to move the needle on unemployment. It&#8217;s worth remembering that only 11% of U.S. jobs come from manufacturing, thanks to globalization, which has taken jobs abroad to lower-wage countries, and technological advances that have increased worker productivity. And that percentage has been declining steadily for several decades. Losing jobs to globalization isn’t just an issue for the U.S. The trend has long been remaking workforces across the world. In China, higher wage demands have led many global companies to relocate their factories to countries with even cheaper labor, such as Vietnam and Malaysia. As economist Peter Diamond told me today, we have to get used to the fact that “globalization is a reality which isn’t going to stop.” And since we can’t reverse that process, the biggest<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=22479&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>20</slash:comments>
	<primary_category>Davos</primary_category><primary_category_link>http://business.time.com/category/davos/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/01/600_davos.jpg?w=240</featured_image>
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			<media:title type="html">royaclare</media:title>
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		<title>The TIME at Davos Debate: Is Capitalism Working in the 21st Century?</title>
		<link>http://business.time.com/2012/01/25/the-time-at-davos-debate-analyses-capitalism-and-corporations/</link>
		<comments>http://business.time.com/2012/01/25/the-time-at-davos-debate-analyses-capitalism-and-corporations/#comments</comments>
		<pubDate>Wed, 25 Jan 2012 13:02:08 +0000</pubDate>
		<dc:creator>Roya Wolverson</dc:creator>
				<category><![CDATA[Companies & Industries]]></category>
		<category><![CDATA[Davos]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[TIME]]></category>
		<category><![CDATA[TIME at Davos]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=22288</guid>
		<description><![CDATA[During this year’s TIME at Davos debate, our international editor Jim Frederick posed some colossal questions: Is 20th century capitalism failing 21st century society? And if so, who’s responsible and what should we do to fix it? I&#8217;d love to say the panelists squared away all the answers with a succinct five-point plan. But neither they nor the audience could agree on the problems posed by today’s brand of capitalism. Only one panelist, Bank of America CEO Brian Moynihan, seemed wedded to today&#8217;s disruptive form of capitalism. &#8220;The corrective form of capitalism is boom and bust,&#8221; he said. Other panelists offered up a wide array of responses on who’s to blame for the global economic malaise and the best cure. On the first point of debate &#8212; whether corporations have too much power – discussion turned quickly to who’s to blame for rising inequality. The answers depended on vantage point. For the Western worker, said Sharan Burrow, General Secretary of the International Trade Union Confederation, greedy corporations were to blame. Big companies have kept too large a share of the profits gained from globalization, and they have used that financial muscle to deny workers their seat at the bargaining table on how to distribute wealth, said Burrow. The result, she said, has been rising inequality in the Western world and too little demand among the have-nots to fuel a global recovery. (MORE: The Over Thirty Crowd Doesn’t Understand How Easy It Is to Pirate Content) Not surprisingly, Alcatel-Lucent’s CEO Ben Verwaayen disagreed. To the worker in emerging markets, capitalism has lifted millions out of poverty and lowered wealth inequality. The culprit in today’s version of capitalism isn’t greedy corporations, he said. It’s decision-makers (or rather, non-decision-makers) in government. Western governments have waffled on solving their debt problems and put forth long lists of competing regulations to rein in corporations, which only serve to confuse and disable the economy’s job creators. Raghuram Rajan, professor of finance at the University of Chicago, put forth yet another explanation for the root causes of rising inequality: Worker skills haven’t kept up with technological innovation.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=22288&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2012/01/25/the-time-at-davos-debate-analyses-capitalism-and-corporations/feed/</wfw:commentRss>
		<slash:comments>6</slash:comments>
	<primary_category>Davos</primary_category><primary_category_link>http://business.time.com/category/davos/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/01/davos_debate_0125.jpg?w=240</featured_image>
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			<media:title type="html">royaclare</media:title>
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		<title>Why Germany is Making Money on Eurozone Fears</title>
		<link>http://business.time.com/2012/01/11/why-germany-is-making-money-on-eurozone-fears/</link>
		<comments>http://business.time.com/2012/01/11/why-germany-is-making-money-on-eurozone-fears/#comments</comments>
		<pubDate>Wed, 11 Jan 2012 08:00:37 +0000</pubDate>
		<dc:creator>Roya Wolverson</dc:creator>
				<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Wall Street & Markets]]></category>

		<guid isPermaLink="false">http://curiouscapitalist.blogs.time.com/?p=18325</guid>
		<description><![CDATA[The Bundesbank managed to auction 3.9 billion euros worth of six-month debt at a negative interest rate yesterday. That means investors, for the first time in history, were so eager to finance Germany’s debt that they paid the country to do it.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=18325&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2012/01/11/why-germany-is-making-money-on-eurozone-fears/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>Wall Street &amp; Markets</primary_category><primary_category_link>http://business.time.com/category/wall-street-markets/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/01/german.jpg?w=240</featured_image>
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			<media:title type="html">royaclare</media:title>
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		<title>Why Britain and the EU Still Need Each Other</title>
		<link>http://business.time.com/2011/12/13/why-britain-and-the-eu-still-need-each-other/</link>
		<comments>http://business.time.com/2011/12/13/why-britain-and-the-eu-still-need-each-other/#comments</comments>
		<pubDate>Tue, 13 Dec 2011 18:28:57 +0000</pubDate>
		<dc:creator>Roya Wolverson</dc:creator>
				<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Wall Street & Markets]]></category>

		<guid isPermaLink="false">http://timecuriouscapitalist.wordpress.com/?p=18124</guid>
		<description><![CDATA[David Cameron’s decision to wield his cherished veto in Brussels last week added more high drama to the endless euro saga<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=18124&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Wall Street &amp; Markets</primary_category><primary_category_link>http://business.time.com/category/wall-street-markets/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2011/12/ukeu1.png?w=240</featured_image>
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			<media:title type="html">Illustration by Alexander Ho for TIME</media:title>
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		<title>The Eurozone&#8217;s Moment: Why S&amp;P is Turning Up the Heat</title>
		<link>http://business.time.com/2011/12/06/the-eurozones-moment-why-sp-is-turning-up-the-heat/</link>
		<comments>http://business.time.com/2011/12/06/the-eurozones-moment-why-sp-is-turning-up-the-heat/#comments</comments>
		<pubDate>Tue, 06 Dec 2011 10:46:47 +0000</pubDate>
		<dc:creator>Roya Wolverson</dc:creator>
				<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[credit rating agencies]]></category>
		<category><![CDATA[eurozone crisis]]></category>
		<category><![CDATA[Merkel]]></category>
		<category><![CDATA[S&P]]></category>
		<category><![CDATA[Sarkozy]]></category>

		<guid isPermaLink="false">http://curiouscapitalist.blogs.time.com/2011/12/06/the-eurozones-moment-why-sp-is-turning-up-the-heat/</guid>
		<description><![CDATA[Standard and Poor&#8217;s decision to threaten eurozone countries with ratings downgrades may seem like bad timing. But if it keeps markets on edge, European leaders might be scared enough to crank out some real solutions, rather than the half-baked measures already on tap. S&#38;P&#8217;s threat, which leaves Europe facing a 50% chance of a downgrade in the next three months and a possible downgrade of its bailout fund, came on the heels of some rare optimism in the crisis. Germany&#8217;s Angela Merkel and France&#8217;s Nicolas Sarkozy had just banged out a deal to give the EU greater control over national budgets ahead of Friday&#8217;s game-changing EU summit. Markets were welcoming Italy&#8217;s budget-slashing plan. And yields on Italian and Spanish debt were heading south. But there are plenty of reasons to be skeptical about the days ahead, which is why S&#38;P swooped in. The tentative agreement struck by Germany and France still doesn&#8217;t resolve the eurozone&#8217;s long term problems, and here&#8217;s why: First off, the &#8220;golden rule&#8221; to cap euro nations&#8217; deficits, a key part of the Merkozy plan, already existed in the EU&#8217;s treaty and never worked. The new caveat is that rogue countries would be sanctioned for violating the deficit limit. But that wouldn&#8217;t necessarily prevent market panic once a member country falls out of line, mainly because there&#8217;s no easy way to enforce the budget rules. Merkel&#8217;s enforcement solution is to have member states transfer their budgeting authority to a central body, but many countries are bound to shoot that down once it comes to actually voting on new rules. That&#8217;s why many analysts think Europe&#8217;s only route to salvation is to set itself up like the U.S., allowing money to flow freely from strong to weak states, either through common bonds, a bigger bailout, or a lax European Central Bank. The problem there, of course, is that a few weak states might end up running up debt with abandon. But even if those countries defaulted, it would arguably cost less than the two years of global financial<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=17950&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Economy &amp; Policy</primary_category><primary_category_link>http://business.time.com/category/economy-policy/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2011/12/gs_euro_1206.jpg?w=240</featured_image>
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		<title>Europe&#8217;s Debt Crisis: The Fat Lady Sings</title>
		<link>http://business.time.com/2011/11/10/europes-debt-crisis-the-fat-lady-sings/</link>
		<comments>http://business.time.com/2011/11/10/europes-debt-crisis-the-fat-lady-sings/#comments</comments>
		<pubDate>Thu, 10 Nov 2011 14:50:45 +0000</pubDate>
		<dc:creator>Roya Wolverson</dc:creator>
				<category><![CDATA[Economy & Policy]]></category>

		<guid isPermaLink="false">http://curiouscapitalist.blogs.time.com/?p=17688</guid>
		<description><![CDATA[The latest act in the debt drama unfolding in Europe right now can only be described as operatic. Italian bond yields have risen to euro era highs, markets around the world are roiled (US equities suffered their worst one day drop in three months yesterday), and the infamous Silvio Berlusconi has agreed—finally—to step down as prime minister of Italy. The question is where it all leads to now. If Italy defaults, which a lot of experts say is quite likely, it would be, as PIMCO CEO Mohamed El-Erian has told me, “A bigger event than Lehman Brothers.” As usual, European leaders are struggling unsuccessfully to stem the tide. For a look at how Berlusconi created the world’s most dangerous economy, and what might happen to world markets now, check out this story in the latest edition of Time.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=17688&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Economy &amp; Policy</primary_category><primary_category_link>http://business.time.com/category/economy-policy/</primary_category_link>
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		<title>Could Occupy Wall St. and the Tea Party Unite?</title>
		<link>http://business.time.com/2011/10/13/could-occupy-wall-st-and-the-tea-party-unite/</link>
		<comments>http://business.time.com/2011/10/13/could-occupy-wall-st-and-the-tea-party-unite/#comments</comments>
		<pubDate>Thu, 13 Oct 2011 09:00:53 +0000</pubDate>
		<dc:creator>Roya Wolverson</dc:creator>
				<category><![CDATA[Economy & Policy]]></category>

		<guid isPermaLink="false">http://curiouscapitalist.blogs.time.com/?p=17396</guid>
		<description><![CDATA[The lines being drawn between the ultra-right Tea Party and its nearest complement in the realm of public furor, Occupy Wall Street, are curious. My colleague Michael Scherer over at Swampland describes the parallels as follows: In its broadest outlines, this new outpouring of protest is driven by the same fuel that gave fire to the Tea Party: Anger at elites, a feeling of injustice, a concern about jobs, fear about the direction of the economy and a clear desire to take action. Whereas the Tea Party focused these furies on government, Occupy Wall Street focuses the fury on corporate America. It seems, quite simply, to be the left’s answer to the right’s size-of-government critique that has dominated national politics for the last two years. But what if these two seemingly polarized groups are more than just a disgusted reaction to one another? What if they have the makings of a singular cause? It&#8217;s not that far-fetched. In some ways, the Tea Party and OWS are like doppelgangers (you know, those ghostly human doubles in folklore that, in some cases, end up chasing the same demons, one just a heartbeat ahead of the other.) Both groups are repulsed by their taxpayer dollars funding Wall Street&#8217;s bailout. Both are disenchanted by the death of the American dream. And both feel left out of a system that seems less like a democracy than a cavalier plutocracy. I started rummaging around the blogosphere for a sympathetic view and came across this nice visual, a Venn diagram of the Tea Party and OWS&#8217;s overlapping interests, drawn up by the self-described &#8220;liberal-leaning libertarian&#8221; blogger James Sinclair:<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=17396&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Economy &amp; Policy</primary_category><primary_category_link>http://business.time.com/category/economy-policy/</primary_category_link>
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			<media:title type="html">Members of the Occupy Wall Street movement take part in a protest march through New York</media:title>
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		<title>Nobel&#8217;s Newbie: Don&#8217;t Blame Economists for the Economy</title>
		<link>http://business.time.com/2011/10/10/nobels-newbie-dont-blame-economists-for-the-economy/</link>
		<comments>http://business.time.com/2011/10/10/nobels-newbie-dont-blame-economists-for-the-economy/#comments</comments>
		<pubDate>Mon, 10 Oct 2011 20:28:28 +0000</pubDate>
		<dc:creator>Roya Wolverson</dc:creator>
				<category><![CDATA[Economy & Policy]]></category>

		<guid isPermaLink="false">http://curiouscapitalist.blogs.time.com/?p=17327</guid>
		<description><![CDATA[News of this year&#8217;s Nobel prize winners in economics came in today, against the backdrop of a possible second global economic crisis. Two American macro-economists, Thomas Sargent of New York University and Christopher Sims at Princeton, claimed victory for their work on how our expectations and policies actually impact the economy. So what can these economic gurus tell us about today&#8217;s economic malaise? Let me first say that it certainly feels odd to be exalting anyone&#8217;s work in economics at a time like this. Our feeble economic system is, after all, a product of theories laid out by the Ivory Tower. And our faith in many of those theories is hitting rock bottom. The idea, for instance, that ultra-competitive markets can improve our lives doesn&#8217;t square so well with our stubbornly high unemployment rate or rising inequality. In fact, the whole concept of capitalism is being reconsidered, even by market-minded economists like Nouriel Roubini. As Roubini recently put it to the Wall Street Journal: Karl Marx had it right. At some point capitalism can self-destroy itself because you cannot keep on shifting income from labour to capital without not having excess capacity and a lack of aggregate demand, and that&#8217;s what&#8217;s happening. So what do our Nobel-prize winning economists think about these market failures? Sargant, whose work has focused on how people respond strategically (rather than passively) to economic policies, defends the work of macro economics in a recent interview as follows: Far from taking the &#8220;efficient markets&#8221; outcomes for granted, important parts of modern macro are about understanding a large and interesting suite of asset pricing puzzles [...] puzzles about empirical failures of simple versions of efficient markets theories. Sargant goes on to cite loads of recent research that targets the holes in efficient markets, but his response still begs the question: If the theorists are over the idea that efficient markets work, then how were they caught off-guard by the recent financial crisis? Sargant&#8217;s answer: It is just wrong to say that this financial crisis caught modern macroeconomists by<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=17327&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Economy &amp; Policy</primary_category><primary_category_link>http://business.time.com/category/economy-policy/</primary_category_link>
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