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	<title>Business &#38; MoneyCategory: Finance &#124; Business &#38; Money &#124; TIME.com</title>
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		<title>Business &#38; MoneyCategory: Finance &#124; Business &#38; Money &#124; TIME.com</title>
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		<title>This Housing Upturn Looks Like the Real Thing</title>
		<link>http://business.time.com/2013/05/15/why-this-housing-upturn-looks-like-the-real-thing/</link>
		<comments>http://business.time.com/2013/05/15/why-this-housing-upturn-looks-like-the-real-thing/#comments</comments>
		<pubDate>Wed, 15 May 2013 09:45:32 +0000</pubDate>
		<dc:creator>Michael Sivy</dc:creator>
				<category><![CDATA[Construction]]></category>
		<category><![CDATA[Economic Indicators]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Federal Reserve]]></category>
		<category><![CDATA[Finance]]></category>
		<category><![CDATA[Foreclosures]]></category>
		<category><![CDATA[Home-Equity Loans]]></category>
		<category><![CDATA[Jobs]]></category>
		<category><![CDATA[Mortgages]]></category>
		<category><![CDATA[Real Estate]]></category>
		<category><![CDATA[Real Estate & Homes]]></category>
		<category><![CDATA[Real Estate Markets]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=79982</guid>
		<description><![CDATA[Ever since the recovery began in 2009, a weak housing market has held back the U.S. economy. The first rebound in home prices was lackluster and after only a year was followed by another dip. But the recent upturn in home prices looks like the real thing. One clear sign of a turning point: In March, homeownership hit a 17-year low, while the 12-month gain in home prices was the biggest in seven years. Those two extremes suggest that the market has hit bottom. The people who are least well financed have been squeezed out, while demand is growing among people who can afford to pay higher home prices. If that trend continues – and there are good reasons to believe it will – a substantial burden will be lifted from the U.S. economy. The great surprise since the recession ended has been the weakness of the economic rebound, which has been particularly clear in the housing market. After falling 31% from 2006 to 2009, home prices rose almost 5% over the following year. But that recovery faltered, and during the next 20 months prices fell to a new low. Then the current recovery began, and barring another recession, all the evidence indicates that it will be sustainable: In the first quarter, home prices were higher (compared with a year earlier) in 133 of 150 metropolitan areas, according to the National Association of Realtors. On a national basis, the median home price gained 11.3%, the biggest yearly gain since 2005. (MORE: The Housing Mirage) The glut of homes for sale has diminished, down almost 17% compared with the previous year. In addition, the number of foreclosures in April (including bank repossessions and scheduled auctions) was 23% lower than a year earlier. Mortgage applications were up 7% in the most recent week, helped by low mortgage rates. Refinancings, which typically improve homeowners’ finances, have been generally rising in recent months and reached their highest level since December. And a Fannie Mae survey of consumer expectations for housing found that a majority of those surveyed in<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=79982&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Real Estate &amp; Homes</primary_category><primary_category_link>http://business.time.com/category/personal-finance-2/real-estate-homes/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/03/600_ml_housing_03271.jpg?w=240</featured_image>
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			<media:title type="html">Housing</media:title>
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			<media:title type="html">michaelsivy</media:title>
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		<title>The Real Significance of the Bitcoin Boom (and Bust)</title>
		<link>http://business.time.com/2013/04/12/the-real-significance-of-the-bitcoin-boom-and-bust/</link>
		<comments>http://business.time.com/2013/04/12/the-real-significance-of-the-bitcoin-boom-and-bust/#comments</comments>
		<pubDate>Fri, 12 Apr 2013 09:45:40 +0000</pubDate>
		<dc:creator>Michael Sivy</dc:creator>
				<category><![CDATA[Banking]]></category>
		<category><![CDATA[Currency]]></category>
		<category><![CDATA[E-commerce]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[Economics & Policy]]></category>
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		<category><![CDATA[Finance]]></category>
		<category><![CDATA[Financial Privacy]]></category>
		<category><![CDATA[Financial Regulation]]></category>
		<category><![CDATA[Government]]></category>
		<category><![CDATA[Information Technology]]></category>
		<category><![CDATA[Retail]]></category>
		<category><![CDATA[Saving]]></category>
		<category><![CDATA[Taxes]]></category>
		<category><![CDATA[Technology & Media]]></category>
		<category><![CDATA[The Economy]]></category>
		<category><![CDATA[Wall Street & Markets]]></category>
		<category><![CDATA[Wealth]]></category>
		<category><![CDATA[World Finance]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=77371</guid>
		<description><![CDATA[The volatile rise-and-fall of Bitcoin has prompted lots of stories explaining why the online virtual currency is a classic bubble. Many compare it to tulip mania in 17th century Holland, where prices of rare tulip bulbs soared to absurd heights and then crashed, ruining the speculative investors who had bought them. But the Bitcoin phenomenon is more than a bubble. It says something important about the current and future state of the global economy. The scale of the recent boom-and-bust has been staggering indeed. At the start of the year, a Bitcoin was worth $13.51. Earlier this week, it traded as high as $266. And on Thursday, it plummeted to less than $100, as one of the exchanges where Bitcoins are traded closed temporarily. This would be comparable to the exchange rate for the British pound soaring from $1.62 (where it was on Jan. 1) to $31.90 and then falling back to $12. Such monumental appreciation and volatility are clearly the result of speculation — people buying the online currency just because they think its value will rise, not because they want to use it to purchase goods and services. But Bitcoins’ gains are not the result of speculation alone. They partly reflect the fact that the Bitcoin system is much better designed than previous online currencies. And more significantly, the run-up also reflects anxiety about the safety of the global banking system and the stability of major international currencies. (MORE: No Money, No Problems: Canada Considers Completely Digital Currency) The technicalities of the Bitcoin system are complex, but to make this online currency more successful than previous versions, the designers overcame two key challenges. First, to prevent counterfeiting, they attached a history of transactions to each currency unit — but allowed users to keep their transactions nearly anonymous. Counterfeiting is hard because fake Bitcoins would need an authenticated history to pass muster. Second, they strictly controlled the supply of Bitcoins outstanding — thereby saving it from the disastrous fate of, for example, the paper currency known as assignats that were issued during<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=77371&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>World Finance</primary_category><primary_category_link>http://business.time.com/category/world-finance/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2013/04/biz-bitcoin-130412.jpg?w=240</featured_image>
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			<media:title type="html">Bitcoin Value Soars And Drops</media:title>
		</media:content>

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			<media:title type="html">michaelsivy</media:title>
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		<item>
		<title>Can the U.S. Dollar Become Almighty Once Again?</title>
		<link>http://business.time.com/2013/03/20/can-the-u-s-dollar-become-almighty-once-again/</link>
		<comments>http://business.time.com/2013/03/20/can-the-u-s-dollar-become-almighty-once-again/#comments</comments>
		<pubDate>Wed, 20 Mar 2013 14:35:25 +0000</pubDate>
		<dc:creator>Michael Sivy</dc:creator>
				<category><![CDATA[Austerity]]></category>
		<category><![CDATA[Banking]]></category>
		<category><![CDATA[Commodities]]></category>
		<category><![CDATA[Currency]]></category>
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		<category><![CDATA[Energy]]></category>
		<category><![CDATA[Europe]]></category>
		<category><![CDATA[Federal Reserve]]></category>
		<category><![CDATA[Finance]]></category>
		<category><![CDATA[Government]]></category>
		<category><![CDATA[Investing]]></category>
		<category><![CDATA[Jobs]]></category>
		<category><![CDATA[Markets]]></category>
		<category><![CDATA[Mutual Funds]]></category>
		<category><![CDATA[New Energy]]></category>
		<category><![CDATA[Oil]]></category>
		<category><![CDATA[Portfolio Strategy]]></category>
		<category><![CDATA[Stocks]]></category>
		<category><![CDATA[Wall Street]]></category>
		<category><![CDATA[Wall Street & Markets]]></category>
		<category><![CDATA[Wealth]]></category>
		<category><![CDATA[World Finance]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=75257</guid>
		<description><![CDATA[Financial turmoil in Cyprus, where the parliament rejected a plan an eurozone bailout deal that would have taxed bank deposits, is prompting investors to shift cash from the euro zone to the U.S. That’s boosting the value of the dollar &#8212; and it’s just the latest installment in a story that has helped the dollar strengthen for more than a year. Despite gridlock in Washington and a string of economic mishaps, the dollar has risen by 7% since late 2011. That’s a striking turnaround for a currency that was in relentless decline for decades. If the upward trend continues – and there are good reasons to think it will – then the U.S. dollar could become almighty once again. The dollar’s decline over the past 30 years has been far greater than most Americans realize. It has lost almost half its value against other major currencies since 1985 and is down 33% in the past 11 years alone. Indeed, the value of the U.S. dollar is lower today than it was in 2009 when the recession ended. In part, this fall occurred because of government policies in Europe and Japan that kept the euro and the yen overvalued. A weak currency can bolster a country’s economy in the short run, by making goods cheaper for foreign buyers and thereby encouraging exports. But over the longer term, a robust economy is typically accompanied by a strong currency. A currency rises in value when more foreign money is flowing in than is flowing out. These inflows occur not only because of export sales but also because foreigners see investment opportunities or are seeking safe places to park their cash. As a result, a stronger dollar is a bellwether of an improving economy and a brighter outlook for U.S. stocks. And there are three reasons economists think the dollar’s rise could continue: (MORE: Cyprus: The E.U. &#8216;Rescue That Risks Backfiring) Other major countries are worse off economically. The U.S. economy may be sluggish, but it has grown for 14 straight quarters since the recession ended<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=75257&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>World Finance</primary_category><primary_category_link>http://business.time.com/category/world-finance/</primary_category_link>
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			<media:title type="html">michaelsivy</media:title>
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		<item>
		<title>Are Electric-Car Enthusiasts a Little Too Enthusiastic?</title>
		<link>http://business.time.com/2013/02/25/are-electric-car-enthusiasts-a-little-too-enthusiastic/</link>
		<comments>http://business.time.com/2013/02/25/are-electric-car-enthusiasts-a-little-too-enthusiastic/#comments</comments>
		<pubDate>Mon, 25 Feb 2013 13:00:28 +0000</pubDate>
		<dc:creator>Brad Tuttle</dc:creator>
				<category><![CDATA[Autos]]></category>
		<category><![CDATA[Companies & Industries]]></category>
		<category><![CDATA[Finance]]></category>
		<category><![CDATA[Green]]></category>
		<category><![CDATA[Saving]]></category>
		<category><![CDATA[Saving & Spending]]></category>
		<category><![CDATA[Smart Spending]]></category>
		<category><![CDATA[early adopter]]></category>
		<category><![CDATA[electric cars]]></category>
		<category><![CDATA[electric vehicles]]></category>
		<category><![CDATA[electricity]]></category>
		<category><![CDATA[EPA]]></category>
		<category><![CDATA[EVs]]></category>
		<category><![CDATA[gas]]></category>
		<category><![CDATA[internal combustion engine]]></category>
		<category><![CDATA[Nissan]]></category>
		<category><![CDATA[Nissan Leaf]]></category>
		<category><![CDATA[range anxiety]]></category>
		<category><![CDATA[Tesla]]></category>
		<category><![CDATA[Tesla Model S]]></category>
		<category><![CDATA[trends]]></category>
		<category><![CDATA[trendsetter]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=72733</guid>
		<description><![CDATA[Some electric vehicle owners have over-the-top praise for their cars&#8217; performance and practicality. Does that mean the vast majority of drivers on the road are stupid for not being EV early adopters? Check out this article in the Washington Post, written by a columnist who says &#8220;I can’t drive my Mercedes-Benz any more&#8221; after owning an electric-powered $60,000 Tesla Model S for a month. Here&#8217;s a snippet of the breathless review, appropriately titled &#8220;Confessions of a Tesla Fanboy&#8221;: When you step on the pedal in the Model S you skip a few heartbeats. The car literally seems to fly. It is frighteningly quiet and picks up acceleration like a spaceship shifting into warp speed. I’ve raced Formula Fords at Skip Barber Racing School and have driven Porches and Ferraris owned by my friends. They feel like super-charged lawn mowers when compared with the Tesla. (MORE: It&#8217;s Not About the Range: How the Tesla-NY Times Controversy Misses the Point About Electric Cars) A San Francisco Chronicle story quotes an EV enthusiast named Forrest North, who just so happens to run an app that helps locate EV charging stations, saying, &#8220;Plug-in vehicles have crossed over the point of being an economic no-brainer in the last few months.&#8221; North had this to say about owning a Nissan Leaf for two years, and driving it about 1,000 miles per month: &#8220;I have not taken it in for a single service in those two years,&#8221; he said. &#8220;You can fit the entire cost of ownership, lease, service and fuel into the fuel bill of any other normal car.&#8221; Now, if you swallow everything that EV owners like these say, it seems almost idiotic to still be driving around in a vehicle powered by a traditional internal-combustion engine and dropping money at gas stations on a regular basis. So, are we all just dumb for not hopping aboard the Plug-in Express? Of course not. The truth is that there are legitimate reasons to be skeptical about the costs and practicality of EV ownership. It also seems<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=72733&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Autos</primary_category><primary_category_link>http://business.time.com/category/companies-industries/autos-companies-industries/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/06/nissan-leaf.jpg?w=240</featured_image>
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			<media:title type="html">Nissan Leaf</media:title>
		</media:content>

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			<media:title type="html">bradtuttle</media:title>
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		<item>
		<title>Mergers and Acquisitions Boom! Is This a Good Sign for the Economy?</title>
		<link>http://business.time.com/2013/02/15/mergers-and-acquisitions-boom-is-this-a-good-sign-for-the-economy/</link>
		<comments>http://business.time.com/2013/02/15/mergers-and-acquisitions-boom-is-this-a-good-sign-for-the-economy/#comments</comments>
		<pubDate>Fri, 15 Feb 2013 13:00:42 +0000</pubDate>
		<dc:creator>Christopher Matthews</dc:creator>
				<category><![CDATA[Banking]]></category>
		<category><![CDATA[Companies & Industries]]></category>
		<category><![CDATA[Economic Indicators]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Finance]]></category>
		<category><![CDATA[Investment Banking]]></category>
		<category><![CDATA[Private Equity]]></category>
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		<category><![CDATA[Wall Street & Markets]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=70728</guid>
		<description><![CDATA[Wall Street dealmakers are off to a busy start to 2013, as some of corporate America&#8217;s most recognizable names have become involved in multi-billion-dollar mergers and acquisitions. Just yesterday, American Airlines and US Airways announced they would be merging in an $11 billion deal, while private equity firm 3G and Warren Buffett&#8216;s Berkshire Hathaway announced a $28 billion joint acquisition of  food conglomerate H.G. Heinz. And these two deals follow hard upon $24.4 billion leveraged buyout of Dell by private equity firm Silver Lake Partners and the firm&#8217;s founder, Michael Dell. Indeed, according to data from Deallogic, U.S. companies have spent $219 billion on mergers and acquisitions so far in 2013, a sharp increase from 2012, when firms spent just $85 billion during the same period. And U.S. firms are on pace to have the biggest year in M&#38;A activity since 2000. While all this activity will be surely benefit shareholders of acquired firms &#8212; as well as lots of Wall Street investment bankers &#8212; what does it say about the health of the economy? Since the late 19th century, mergers and acquisitions have tended to come in waves, spurred by the availability of credit, changes in government policy, or bursts of private-sector innovation. Deregulation, for instance, motivated a wave of mergers in the airline industry in the 1970s and the consolidation of the banking industry in the 1990s. But perhaps the most important factor in motivating these bursts of M&#38;A is economic conditions, particularly the strength of the stock market. Mergers in particular are often financed with stock, and high stock values give companies the resources with which to make purchases. (MORE: Why Can’t This Economy Really Get Going?) But the stock market has been doing pretty well for a few years now, with the S&#38;P 500 up more than 138% since its bear-market lows of 2009. So why are we only now seeing the first glimmer of an M&#38;A boom? Surely one reason is that today&#8217;s market is heavily fortified by quantitative easing. The Federal Reserve has taken unprecedented action to keep interest rates low in both the short and long<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=70728&#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</primary_category><primary_category_link>http://business.time.com/category/wall-street-markets/investing-wall-street-markets/wall-street/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/02/bull.jpg?w=240</featured_image>
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			<media:title type="html">bull</media:title>
		</media:content>

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			<media:title type="html">christopherrmatthews</media:title>
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	</item>
		<item>
		<title>Why Can&#8217;t This Economy Really Get Going?</title>
		<link>http://business.time.com/2013/02/12/why-cant-this-economy-get-going/</link>
		<comments>http://business.time.com/2013/02/12/why-cant-this-economy-get-going/#comments</comments>
		<pubDate>Tue, 12 Feb 2013 13:00:18 +0000</pubDate>
		<dc:creator>Michael Sivy</dc:creator>
				<category><![CDATA[Austerity]]></category>
		<category><![CDATA[Banking]]></category>
		<category><![CDATA[Bonds]]></category>
		<category><![CDATA[Companies & Industries]]></category>
		<category><![CDATA[Economic Indicators]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Europe]]></category>
		<category><![CDATA[Federal Reserve]]></category>
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		<category><![CDATA[Financial Reform]]></category>
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		<category><![CDATA[Home-Equity Loans]]></category>
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		<guid isPermaLink="false">http://business.time.com/?p=70353</guid>
		<description><![CDATA[It’s no secret that the U.S. economy isn’t doing especially well. But there’s a cliché – one that I’ve repeated myself – that conditions are improving, even if progress is disappointingly slow. That notion was exploded two weeks ago when the Department of Commerce estimated that GDP actually declined in the fourth quarter of 2012. It’s true that the drop wasn’t very big and was offset to some extent by better-than-expected results earlier in the year. But when you average results for the past four quarters, overall growth last year amounted to only half the normal rate, and there’s not really any upward trend. Those results are even worse than they sound. After a recession ends, the economy typically enjoys a bit of a boom. And the deeper the slump, the more powerful the rebound usually is. For brief periods, GDP growth can get up as high as 9% (at an annual rate). And over several years, the economy can expand considerably faster than the historical average rate of 3.25%. In short, after a recession there’s typically a catch-up period, in which the economy makes up some of its lost ground. (MORE: 9 Easy Ways to Save Money on Your Next Vacation) So the problem is not just that business conditions are taking a long time getting back to normal. What’s a lot more disappointing is that there hasn’t been any real rebound at all. In fact, GDP growth hasn’t outpaced the historical average rate for two consecutive quarters since the recession ended. This chronic weakness isn’t result of any single problem. Instead, there are a host of factors that have combined to produce the entrenched stagnation we see today. Among them: The housing bust. Home prices have stopped falling and have turned up over the past year. But many American families still have not recovered from the 30% drop in prices between 2006 and 2009. By some estimates, a fifth of all the homes with mortgages are worth less than is owed on them. Not only does this prevent many homeowners<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=70353&#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/2013/02/rtr3dn1w.jpg?w=240</featured_image>
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			<media:title type="html">Traders work on the floor of the New York Stock Exchange after the opening bell Feb. 11, 2013.</media:title>
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			<media:title type="html">michaelsivy</media:title>
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		<title>Has the Banking Industry Really Been Fixed?</title>
		<link>http://business.time.com/2013/02/05/has-the-banking-industry-really-been-fixed/</link>
		<comments>http://business.time.com/2013/02/05/has-the-banking-industry-really-been-fixed/#comments</comments>
		<pubDate>Tue, 05 Feb 2013 13:00:45 +0000</pubDate>
		<dc:creator>Michael Sivy</dc:creator>
				<category><![CDATA[Banking]]></category>
		<category><![CDATA[Companies & Industries]]></category>
		<category><![CDATA[Economics & Policy]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Finance]]></category>
		<category><![CDATA[Financial Reform]]></category>
		<category><![CDATA[Financial Regulation]]></category>
		<category><![CDATA[Foreclosures]]></category>
		<category><![CDATA[Government]]></category>
		<category><![CDATA[Investing]]></category>
		<category><![CDATA[Investment Banking]]></category>
		<category><![CDATA[Markets]]></category>
		<category><![CDATA[Personal Finance]]></category>
		<category><![CDATA[Portfolio Strategy]]></category>
		<category><![CDATA[Private Equity]]></category>
		<category><![CDATA[Real Estate & Homes]]></category>
		<category><![CDATA[Real Estate Markets]]></category>
		<category><![CDATA[Stocks]]></category>
		<category><![CDATA[The Economy]]></category>
		<category><![CDATA[Wall Street & Markets]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=69750</guid>
		<description><![CDATA[The biggest economic puzzle of the past few years is why the recovery has remained so weak. The underlying cause of the 2007-2009 recession was the bursting of the real estate bubble. But it was the banking crisis resulting from the drop in home prices that actually sent the U.S. tumbling into the worst economic downturn since the Great Depression. Continuing problems in the banking industry have been among the chief factors holding back the recovery. The key question now is whether the banks have finally tackled their problems, so that the economy can start to grow more robustly. It certainly seems as though the banking sector should be on the mend. Home prices have turned up after hitting bottom early last year. And other borrowers are in better shape, too. Corporate profits have rebounded powerfully, and consumers have got their household debt under control. So you might think that banks would be in a stronger position to finance economic growth. The reality, however, is more complicated. The losses banks suffered because of falling home prices exposed a host of fundamental problems in the industry. Here’s a look at what needs to be addressed to get the financial system back to full strength: (MORE: Misguided? Half of Adult Children Think Parents Made No Money Mistakes) Regulation. There are two key types of regulation. The first limits the amount of risk a bank can take. Only trouble is, it’s hard for regulators – or anyone else – to monitor the riskiness of bank portfolios. Indeed, the major credit-rating agencies have come under sharp criticism for failing to recognize the risk of some sophisticated investments. The second type of regulation separates aggressive forms of banking from more mundane lending for mortgages, businesses, and consumer finance. That prevents speculative losses from leading to a cutback in credit available for ordinary business activities. A provision known as the Volcker Rule restricts banks from making risky investments with the same capital that they use to make loans to clients. But the rule does not require the nearly complete separation<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=69750&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Banking</primary_category><primary_category_link>http://business.time.com/category/banking-2/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2013/02/rtxdamt.jpg?w=240</featured_image>
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			<media:title type="html">Traders stand outside the New York Stock Exchange on March 27, 2009.</media:title>
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			<media:title type="html">michaelsivy</media:title>
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		<title>Lots of Goodies Were Stuffed into the Fiscal Cliff Deal­</title>
		<link>http://business.time.com/2013/01/07/lots-of-goodies-were-stuffed-into-the-fiscal-cliff-deal%c2%ad/</link>
		<comments>http://business.time.com/2013/01/07/lots-of-goodies-were-stuffed-into-the-fiscal-cliff-deal%c2%ad/#comments</comments>
		<pubDate>Mon, 07 Jan 2013 15:00:01 +0000</pubDate>
		<dc:creator>Michael Sivy</dc:creator>
				<category><![CDATA[Agriculture]]></category>
		<category><![CDATA[Austerity]]></category>
		<category><![CDATA[Banking]]></category>
		<category><![CDATA[Business of Sports]]></category>
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		<category><![CDATA[Construction]]></category>
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		<category><![CDATA[Energy]]></category>
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		<category><![CDATA[Green]]></category>
		<category><![CDATA[Hollywood]]></category>
		<category><![CDATA[Investment Banking]]></category>
		<category><![CDATA[Manufacturing]]></category>
		<category><![CDATA[Mutual Funds]]></category>
		<category><![CDATA[New Energy]]></category>
		<category><![CDATA[Oil]]></category>
		<category><![CDATA[Private Equity]]></category>
		<category><![CDATA[Retail]]></category>
		<category><![CDATA[Taxes]]></category>
		<category><![CDATA[Transportation]]></category>
		<category><![CDATA[Wall Street]]></category>
		<category><![CDATA[Wall Street & Markets]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=65939</guid>
		<description><![CDATA[You’d think that Congress would have kept the fiscal cliff negotiations as simple and tight as possible. The size of the deficit, the threat of automatic spending cuts, and the need for a last-minute tax deal deserved everyone’s full attention. And yet, the Congressional Budget Office breakdown of the bill shows that there were all sorts of goodies buried in the fine print, benefiting everyone from filmmakers to rum distillers. The problem is so-called “tax expenditures,” which are basically ways to subsidize various kinds of activities through tax breaks (as opposed to direct payments). The fiscal cliff deal consists of three parts – personal taxes, business taxes and energy taxes – and each includes its own giveaways. Many of these were simply increases or extensions of tax expenditures that already existed. And some of them may be perfectly reasonable public policy. Perhaps it’s worthwhile to spend an additional $9.7 billion over the next 10 years on additional subsidies for student loans or $5.6 billion for adoptions, although both those figures seem like a lot considering that employer-provided childcare is getting only $209 million. More money is at stake in subsidies for various businesses, $46 billion, and for alternative energy, $18 billion. But even when those tax expenditures are justifiable, they merit separate and thorough discussion, rather than being mixed into what is supposed to be a debate over personal income tax rates. Moreover, there are plenty of lesser tax expenditures that seem to deserve some skepticism. Indeed, Senator McCain criticized such tax benefits last week, saying that &#8220;special-interest giveaways,&#8221; including a $15 million subsidy for asparagus growers, would feed cynicism at a time when tough choices have to be made about the deficit. Here’s a quick look at where some of the other small bequests are going: Railroad tracks. A special 50% tax credit for maintaining tracks is projected to cost $331 million over the next two years. Racetracks. Tax benefits for certain motorsport racing track facilities will cost more than $100 million over the next seven years. Native Americans. Business property on Indian reservations will receive<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=65939&#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">michaelsivy</media:title>
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		<title>LIBOR Scandal: Yep, It&#8217;s as Bad as We Thought</title>
		<link>http://business.time.com/2012/12/20/libor-scandal-yep-its-as-bad-as-we-thought/</link>
		<comments>http://business.time.com/2012/12/20/libor-scandal-yep-its-as-bad-as-we-thought/#comments</comments>
		<pubDate>Thu, 20 Dec 2012 10:45:46 +0000</pubDate>
		<dc:creator>Christopher Matthews</dc:creator>
				<category><![CDATA[Companies & Industries]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Finance]]></category>
		<category><![CDATA[Financial Regulation]]></category>
		<category><![CDATA[Legal]]></category>
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		<category><![CDATA[White Collar Crime]]></category>
		<category><![CDATA[World Finance]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=64782</guid>
		<description><![CDATA[When the LIBOR interest-rate fixing scandal broke wide open over the summer, I asked whether it was &#8220;The Crime of the Century.&#8221; The answer to that question relied on whether banks were understating their LIBOR submissions in order to appear stable at the height of the financial crisis, or whether LIBOR manipulation was a more widespread phenomenon involving collusion across financial institutions in order to profit off of derivative trades. With the announcement yesterday of a $1.5 billion dollar fine, paid to regulators in the U.S., U.K., and Switzerland, against Swiss bank UBS., we have our answer. The British Financial Services Authority  published a 40-page notice announcing the action, and it is rife with damning evidence that UBS employees were colluding among themselves and with traders and brokers at other institutions to manipulate interest rates for their own profit. The FSA found that compared to Barclays, the transgressions at UBS were worse: (MORE: CFTC Chairman Gary Gensler: The Money Cop) &#8220;UBS’s misconduct is, although similar in nature, considerably more serious than Barclays’ because it was more widespread within the firm . . . More individuals, including Managers and Senior Managers, participated in or knew about the manipulation and there were more instances of individual manipulation, across more currencies. Furthermore, the extent to which UBS colluded with others was significantly greater and involved financial rewards being paid to Broker Firms.&#8221; The FSA&#8217;s most damning evidence against the bank is a series of electronic messages sent between bank employees and traders and brokers outside the firm, in which fraud is overtly agreed upon. In one exchange, a UBS trader begs an outside broker to help him influence a particular Japanese Yen LIBOR rate. According to the FSA notice: &#8220;In the course of one campaign of manipulation, a UBS Trader agreed with his counterpart that he would attempt to manipulate UBS’s submissions in “small drops” in order to avoid arousing suspicion. The Trader made it clear that he hoped to profit from the manipulation and referred explicitly to his UBS trading positions and the impact of the JPY LIBOR<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=64782&#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/2012/12/biz-ubs-1219.jpg?w=240</featured_image>
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			<media:title type="html">image: The logo of Swiss bank UBS is seen on a building in Zurich, Dec. 19, 2012.</media:title>
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			<media:title type="html">christopherrmatthews</media:title>
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		<title>Do We Have Another Financial Bubble On Our Hands? Or Three?</title>
		<link>http://business.time.com/2012/12/19/do-we-have-another-financial-bubble-on-our-hands-or-three/</link>
		<comments>http://business.time.com/2012/12/19/do-we-have-another-financial-bubble-on-our-hands-or-three/#comments</comments>
		<pubDate>Wed, 19 Dec 2012 14:00:17 +0000</pubDate>
		<dc:creator>Michael Sivy</dc:creator>
				<category><![CDATA[Austerity]]></category>
		<category><![CDATA[Banking]]></category>
		<category><![CDATA[Bonds]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Federal Reserve]]></category>
		<category><![CDATA[Finance]]></category>
		<category><![CDATA[Financial Reform]]></category>
		<category><![CDATA[Government]]></category>
		<category><![CDATA[Investing]]></category>
		<category><![CDATA[Jobs]]></category>
		<category><![CDATA[Markets]]></category>
		<category><![CDATA[Mortgages]]></category>
		<category><![CDATA[Municipal Government]]></category>
		<category><![CDATA[Real Estate & Homes]]></category>
		<category><![CDATA[Real Estate Markets]]></category>
		<category><![CDATA[Stocks]]></category>
		<category><![CDATA[Taxes]]></category>
		<category><![CDATA[Wall Street & Markets]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=64489</guid>
		<description><![CDATA[More than two years ago, economists started talking about a bubble in Treasury bonds that would eventually burst, just as the dot.com bubble and the housing bubble had. If that happens, the prices of long-term bonds could fall by 10% to 20%. So far, that bond bust hasn&#8217;t materialized. But one of the characteristics of bubbles is that they often go on longer than anyone expects. What is most troubling now is that the problem is spreading beyond Treasuries. Excessive borrowing and ultra-low interest rates are now distorting all the debt markets. As a result, there is no longer just one bubble – there are many. The details vary, but debt bubbles have two things in common. First, there is a big increase in borrowing often promoted by government policies and sometimes accompanied by a decline in lending standards. Second, there is a huge increase in the amount of money available that keeps interest rates low. Sometimes the cash comes from the government and sometimes it is provided by the banking sector, as it was during the housing bubble. The current debt market bubbles are largely the result of Federal Reserve Chairman Ben Bernanke’s decision to pump huge amounts of money into the banking system. Because of the recession, interest rates would probably have fallen somewhat anyway. And because bond prices normally move in the opposite direction from rates, prices would have risen. But the Fed&#8217;s policies over the past couple of years have depressed interest rates and pushed up bond prices far more than normal. Only trouble is, the Fed can&#8217;t keep this up forever. Rapid money growth can be absorbed if the economy is slack. But once a recovery picks up speed, consumers start spending more exuberantly and businesses become more willing to invest. Excess cash then begins to encourage inflation unless the Fed turns around and drains money from the banking system. Interest rates are likely to rise either way, whether the Fed allows inflation or restrains money growth. (MORE: Why the Fiscal Cliff May Cost You $6,000 in<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=64489&#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/2012/12/money-in-pockets.jpg?w=240</featured_image>
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			<media:title type="html">Do We Have Another Financial Bubble On Our Hands?</media:title>
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			<media:title type="html">michaelsivy</media:title>
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		<title>Banking&#8217;s Really Bad Day</title>
		<link>http://business.time.com/2012/12/12/bankings-really-bad-day/</link>
		<comments>http://business.time.com/2012/12/12/bankings-really-bad-day/#comments</comments>
		<pubDate>Wed, 12 Dec 2012 13:00:43 +0000</pubDate>
		<dc:creator>Rana Foroohar</dc:creator>
				<category><![CDATA[Banking]]></category>
		<category><![CDATA[Curious Capitalist]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Finance]]></category>
		<category><![CDATA[Financial Reform]]></category>
		<category><![CDATA[Financial Regulation]]></category>
		<category><![CDATA[Government]]></category>
		<category><![CDATA[White Collar Crime]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=63969</guid>
		<description><![CDATA[Four years on from the financial crisis, new banking scandals still seem to break out every few months. But this week has been particularly bad for the industry. There was HSBC’s $1.9 billion settlement with the U.S. Justice Department over laundering money for Latin American drug cartels and helping countries like Iran, Cuba, Sudan, Libya, and Burma avoid sanctions. Standard Chartered, another British bank, got dinged too, and now owes Justice a total of $667 million in fines for similar sanction breaches. Then there were the arrests of three London bankers, including one who had worked at Swiss financial giant UBS, by London police as part of the ongoing investigation into widespread manipulation of “LIBOR,” or the “London Interbank Offered Rate,” which is the interest rate that a bank might charge one another bank to borrow money. UBS has reportedly put aside an extra $610 million this year to deal with regulatory issues, presumably in expectation of fines along the lines of the $450 million paid by Barclays for rate manipulation earlier this year. (MORE: The Case for Banking Regulation) Whew. It’s a lot to take in, and market officials are opening public coffers and doing just that &#8212; indeed, given the low-hanging fruit of scandal that still seems to exist in the banking industry, it may be that throwing more money at regulators who turn up further financial misdeeds could be a new way to plug the deficit. But joking aside, not all these scandals are created equal. Standard Charter’s sanction offenses are specific to the politics of the U.S. HSBC’s money laundering is a bigger deal, and as Financial Times columnist John Gapper pointed out in a very smart blog post, raises the issue of the high reward/high risk ratio of doing business in emerging markets. Both HSBC and Standard Chartered have their roots in Asia, and have done well in boom times. But emerging markets are tougher to police than more regulated ones like Europe and the U.S. – and clearly, HSBC missed the boat. It’s also worth pointing out, as I did in a column<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=63969&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Financial Regulation</primary_category><primary_category_link>http://business.time.com/category/economy-policy/financial-regulation-economy-policy/</primary_category_link>
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			<media:title type="html">ranaforoohar</media:title>
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		<title>How Fining Bad Banks Can Fix Our Biggest Money Problems</title>
		<link>http://business.time.com/2012/11/16/how-fining-bad-banks-can-fix-our-biggest-money-problems/</link>
		<comments>http://business.time.com/2012/11/16/how-fining-bad-banks-can-fix-our-biggest-money-problems/#comments</comments>
		<pubDate>Fri, 16 Nov 2012 13:00:59 +0000</pubDate>
		<dc:creator>Dan Kadlec</dc:creator>
				<category><![CDATA[Banking]]></category>
		<category><![CDATA[Finance]]></category>
		<category><![CDATA[Financial Education]]></category>
		<category><![CDATA[Government]]></category>
		<category><![CDATA[Personal Finance]]></category>
		<category><![CDATA[The Economy]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=61181</guid>
		<description><![CDATA[Individuals don’t understand as much as they should about personal finance. That’s why we have government-supported financial education initiatives throughout the world, from Australia to the U.S. The hope is that one day more financially literate populations will help avoid future financial crises. Big questions surround the effort to teach ordinary folks about money matters like debt, bank fees and retirement accounts. Should programs focus on students? Should they reach adults in the workplace? What programs work best? It’s all under review. (MORE: The Many Ways Your Taxes Could Go Up in 2013) Another big question is, who pays for all this? Independent research and unbiased financial education programs aren’t cheap. John Pelletier, Director of the Center for Financial Literacy at Champlain College, believes he has the funding solution: Every time a bank crosses the line and must pay a fine, regulators should tack on a surcharge to underwrite financial literacy programs. The model already exists. As part of a global settlement in the 1990s, Big Tobacco had to cough up $1.45 billion to fund foundations that educate youth about the health problems associated with smoking. Pelletier writes in his blog: “This was a small sum, about 1% of the total global settlement. Since 1999, these foundations have played a major role in reducing teen smoking by 24% from 1997 to 2009.” Banks that profit by skirting the rules and cheating customers through hidden fees and misleading advice make an attractive target. After all, the financial industry has the same moral duty to educate youth on matters of financial health as Big Tobacco has on matters of physical health. Why not ding them for the cause when they get caught? This is a well that will never run dry. Many banks view the occasional fine as simply a cost of doing business and allow for fines in their annual budget. To some degree, breaking rules is what they do. The recent Libor scandal alone could result in bank industry liabilities of $176 billion. Pelletier believes a portion of the fines<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=61181&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2012/11/16/how-fining-bad-banks-can-fix-our-biggest-money-problems/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>Financial Education</primary_category><primary_category_link>http://business.time.com/category/planning/financial-education/</primary_category_link>
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			<media:title type="html">dankadlec</media:title>
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		<title>Highly Educated Have Biggest Debt Problems</title>
		<link>http://business.time.com/2012/10/25/highly-educated-have-biggest-debt-problems/</link>
		<comments>http://business.time.com/2012/10/25/highly-educated-have-biggest-debt-problems/#comments</comments>
		<pubDate>Thu, 25 Oct 2012 14:30:00 +0000</pubDate>
		<dc:creator>Dan Kadlec</dc:creator>
				<category><![CDATA[Banking]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Finance]]></category>
		<category><![CDATA[Financial Education]]></category>
		<category><![CDATA[Foreclosures]]></category>
		<category><![CDATA[Personal Finance]]></category>
		<category><![CDATA[Planning]]></category>
		<category><![CDATA[Real Estate Markets]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=58968</guid>
		<description><![CDATA[It’s widely accepted that unscrupulous bankers tricked unknowing consumers into loans they could not afford, leading to the financial crisis. No doubt, plenty of that occurred—underscored Wednesday with a $1 billion federal suit against Bank of America’s mortgage arm Countrywide Financial. But it turns out the &#8220;victoms&#8221; were not, by and large, unsophisticated rubes. A new study finds that highly educated Americans were most likely to take on unmanageable debt in the pre-crisis years. What&#8217;s more, gross personal financial mismanagement occurred across the population and not just in the mortgage market and not just among the unsophisticated. The study draws a line at the point where monthly payment on household debt equals 40% of income. That’s where default or bankruptcy becomes most likely should the household experience a decline in income, say researchers led by Sherman Hanna, professor of consumer sciences at Ohio State University. Overall, the percentage of Americans exceeding this 40% threshold jumped to 27% in 2008, from 17% in 1992. College graduates were more likely to be in this group than those without a degree, according to the study. Those describing themselves as optimistic about the future also were among the most likely to have unmanageable debts, the study found. Says Hanna: “People who piled on debt may have been too optimistic about their economic future, but you can’t blame that on a lack of education. People with college educations may have thought they were immune to any economic problems.” Meanwhile, folly in the mortgage markets was only part of the problem. One in three renters had unmanageable debts, versus just one in five homeowners, the study found. The percentage of homeowners who had heavy debt burdens increased to 22% in 2007 from 15% in 1992. But the increase was even more dramatic for renters, going to 35% from 20%. Says Hanna: “The percentage of renters who piled on debt really surprised me. It shows that the financial crisis wasn’t all about housing speculation. There was too much debt in all parts of the economy.” None of this minimizes the foul play of<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=58968&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2012/10/25/highly-educated-have-biggest-debt-problems/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>Banking</primary_category><primary_category_link>http://business.time.com/category/banking-2/</primary_category_link>
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			<media:title type="html">dankadlec</media:title>
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		<title>How to Crowdfund Your Creative Project</title>
		<link>http://business.time.com/2012/10/22/how-to-crowdfund-your-creative-project/</link>
		<comments>http://business.time.com/2012/10/22/how-to-crowdfund-your-creative-project/#comments</comments>
		<pubDate>Mon, 22 Oct 2012 16:44:44 +0000</pubDate>
		<dc:creator>Anita Hamilton</dc:creator>
				<category><![CDATA[Business of Creativity]]></category>
		<category><![CDATA[Finance]]></category>
		<category><![CDATA[Investing]]></category>
		<category><![CDATA[Technology & Media]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=52203</guid>
		<description><![CDATA[Once a quirky financing option for intrepid entrepreneurs, crowdfunding has evolved into a fast, effective way to raise cash for just about any endeavor. Even the producers of the upcoming Charlie Kaufman movie, Anomalisa, raised money this way in order to maintain creative freedom for their project. Crowdfunding&#8217;s growing popularity is good news for creative types, who typically don’t have access to bank loans or angel investments that are more readily available to conventional businesses. According to a report from Massolution, arts-oriented projects received about $66 million in 2011 from donation- and reward-based campaigns. That number is likely to keep soaring, as the crowdfunding economy goes from $1.5 billion in 2011 to an estimated $3 billion this year.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=54427&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2012/10/22/how-to-crowdfund-your-creative-project/feed/</wfw:commentRss>
		<slash:comments>2</slash:comments>
	<primary_category>Business of Creativity</primary_category><primary_category_link>http://business.time.com/category/business-of-creativity/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/10/anomalisa.jpg?w=240</featured_image>
		<media:thumbnail url="http://timebusinessblog.files.wordpress.com/2012/10/anomalisa.jpg?w=240" />
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			<media:title type="html">Anomalisa</media:title>
		</media:content>

		<media:content url="http://0.gravatar.com/avatar/04284a7f90abc61897790b84ac9790a6?s=96&#38;d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">anitafhamilton</media:title>
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		<title>Saving the Euro Zone, One Bank at a Time</title>
		<link>http://business.time.com/2012/10/22/saving-the-euro-zone-one-bank-at-a-time/</link>
		<comments>http://business.time.com/2012/10/22/saving-the-euro-zone-one-bank-at-a-time/#comments</comments>
		<pubDate>Mon, 22 Oct 2012 05:26:36 +0000</pubDate>
		<dc:creator>Peter Gumbel</dc:creator>
				<category><![CDATA[Banking]]></category>
		<category><![CDATA[Finance]]></category>
		<category><![CDATA[eurozone]]></category>
		<category><![CDATA[François Hollande]]></category>
		<category><![CDATA[Merkel]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=54457</guid>
		<description><![CDATA[Its very name makes eyes glaze over, and its details are so technical that only the wonkiest of financial wonks really grasp them in full. But efforts to forge a European banking union are, in fact, critically important. If European Union countries get it right, it’ll potentially correct what some economists are calling a “birth defect” of the euro zone and perhaps put an end to the recent years of lurching from crisis to crisis. But politically it’s a minefield, and forging compromises between the sharply diverging interests of the various E.U. governments could take time and a lot more patience. Indeed, the E.U. summit in Brussels that ended on Friday exposed deep divisions over what a banking union actually involves and how and when it should be put into effect. Most notably, there was a clash between French President François Hollande and German Chancellor Angela Merkel before and at the conclusion of the meeting, when both briefed their national press and contradicted each other. Hollande declared that a legal framework would be in place for a new pan-European banking supervisor to be operational at the start of 2013; Merkel, who faces strong domestic opposition to the prospect of German money bailing out reckless banks in other European countries, poured cold water on that interpretation, saying it’s more important to get the details right than to rush ahead. (MORE: Why the Euro Crisis Is Nowhere Near Being Over) So what actually is this banking union supposed to do? And why is it so important that even the International Monetary Fund says that establishing one would “go a long way toward ending the crisis”? The short answer is that a significant part of the euro zone’s problems originated with banking meltdowns that in turn sparked the sovereign-debt crisis that has been the focus of financial market speculation. That was the case in Ireland, where the government nationalized Anglo Irish Bank in January 2009 to prevent its collapse and then had to inject billions of additional euros into the bank, putting its own national finances<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=54457&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2012/10/22/saving-the-euro-zone-one-bank-at-a-time/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>Finance</primary_category><primary_category_link>http://business.time.com/category/companies-industries/finance-companies-industries/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/10/eu_summit_10211.jpg?w=240</featured_image>
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			<media:title type="html">EU summit</media:title>
		</media:content>

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			<media:title type="html">petergumbeltime</media:title>
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		<title>Vikram Pandit Falls on His Sword. But Who Can Save Citigroup?</title>
		<link>http://business.time.com/2012/10/17/vikram-pandit-falls-on-his-sword-but-who-can-save-citigroup/</link>
		<comments>http://business.time.com/2012/10/17/vikram-pandit-falls-on-his-sword-but-who-can-save-citigroup/#comments</comments>
		<pubDate>Wed, 17 Oct 2012 12:00:46 +0000</pubDate>
		<dc:creator>Christopher Matthews</dc:creator>
				<category><![CDATA[Companies & Industries]]></category>
		<category><![CDATA[Finance]]></category>
		<category><![CDATA[Investment Banking]]></category>
		<category><![CDATA[Too-Big-To-Fail]]></category>
		<category><![CDATA[Wall Street & Markets]]></category>
		<category><![CDATA[Citi]]></category>
		<category><![CDATA[Citigroup]]></category>
		<category><![CDATA[Vikram Pandit]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=52072</guid>
		<description><![CDATA[When Vikram Pandit took over  Citigroup in 2007, he was seen as an unlikely choice. In an industry dominated by white, glad-handing alpha males, Pandit is a bookish Indian immigrant known for his financial acumen but not his schmoozing skills. But as the bank increasingly began to struggle under the weight of its dicey real-estate investments, some on Citi’s board began to think that this reportedly risk averse numbers guy might just be the right fit to lead the bank back to the top. That experiment came to a close yesterday, when Pandit abruptly resigned, a day after a mixed earnings report showed that the bank is still a long way from health. The stock market cheered the move, with shares of Citi rising 1.6% yesterday. A diverse group of commentators lauded Pandit&#8217;s decision to step down (which they interpreted as Citi firing Pandit, rather than an actual resignation). Sheila Bair, chairwoman of the FDIC during the financial crisis, who criticized Pandit in her recent book, said of the change: “I viewed his resignation as a positive. The board is doing its job, by opening up a new chapter for Citigroup . . . The bank&#8217;s performance under Pandit was very bad. Citi&#8217;s board is opening a potentially new direction, and should be commended.” (MORE: America Loves to Watch Its Too-Big-To-Fail CEOs Squirm) Investment banker and bank analyst Christopher Whalen wrote: “The departure of Vikram Pandit as CEO of Citigroup should come as a relief to the markets, regulators and customers – indeed, just about everybody besides the volatility junkies who like to trade this very liquid, very unstable stock.” These critics point to Pandit’s lack of experience in operations as one of the central reasons he was unable to turn the bank around. Indeed, the manner in which Pandit rose to the top echelons of Wall Street was unique and indicative of the transformation that the industry has gone through in the past several decades: Pandit received degrees in electrical engineering and a PhD in finance and spent time<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=52072&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2012/10/17/vikram-pandit-falls-on-his-sword-but-who-can-save-citigroup/feed/</wfw:commentRss>
		<slash:comments>2</slash:comments>
	<primary_category>Too-Big-To-Fail</primary_category><primary_category_link>http://business.time.com/category/wall-street-markets/too-big-to-fail-wall-street-markets/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/10/154220704.jpg?w=240</featured_image>
		<media:thumbnail url="http://timebusinessblog.files.wordpress.com/2012/10/154220704.jpg?w=240" />
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			<media:title type="html">Vikram Pandit Steps Down As Citigroup CEO</media:title>
		</media:content>

		<media:content url="http://2.gravatar.com/avatar/8f9a71742e964af96ca58c01a0577a0d?s=96&#38;d=http%3A%2F%2F2.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">christopherrmatthews</media:title>
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		<title>Spain Plays Cat-And-Mouse Over Bailout</title>
		<link>http://business.time.com/2012/10/16/spain-plays-cat-and-mouse-over-bailout/</link>
		<comments>http://business.time.com/2012/10/16/spain-plays-cat-and-mouse-over-bailout/#comments</comments>
		<pubDate>Tue, 16 Oct 2012 12:09:39 +0000</pubDate>
		<dc:creator>Peter Gumbel</dc:creator>
				<category><![CDATA[Europe]]></category>
		<category><![CDATA[Finance]]></category>
		<category><![CDATA[Euro]]></category>
		<category><![CDATA[European Union]]></category>
		<category><![CDATA[mariano rajoy]]></category>
		<category><![CDATA[Spain]]></category>
		<category><![CDATA[van Rompuy]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=51988</guid>
		<description><![CDATA[When leaders of the 27 European Union nations gather in Brussels on Thursday for a two-day summit, all eyes will be on Spanish Prime Minister Mariano Rajoy. Will he officially ask for a financial bailout or not? Will he even give a clue as to whether he might ask for one? The issue has become the latest European guessing game, but it’s also shaping up as a big test of credibility for the euro zone and its crisis management. Over the past month, financial market pressure on Spain and Italy has eased following approval of a €700 billion euro zone bailout fund, the European Stability Mechanism, and the declaration by the European Central Bank that it will ride to the rescue of countries that apply for a bailout by buying unlimited amounts of their sovereign bonds on the secondary market, if necessary, to counter market speculation. (MORE: LIBOR Lending Rate Gets Overhaul (Sort Of)) Yet Spain’s public finances, in particular, are in poor shape. Its banks urgently need recapitalizing and it needs to repay more than €200 billion in sovereign borrowing next year. Many savvy investors believe Spain should ask its European partners for a bailout while the pressure is off. “He who hesitates is lost. Pride goeth before a fall,” Bill Gross, a well-known U.S. fund manager and investment guru, tweeted on Oct 11. “Spain should swallow its pride and ask for help now!” But here’s the catch: to be eligible for a bailout under the newly agreed rules, a nation would have to implement a range of tough conditions set by E.U. officials and the International Monetary fund. Financially, it would be a boon; politically, it could be a humiliation. At the very least, it would be a loss of sovereignty &#8212; and face. (MORE: More Relief for Euro as German Court Gives OK to Bailout Fund) Rajoy has said that he would only take such a step if Spain had unanimous support from its partners and “if the conditions attached are reasonable.” As it is, Rajoy is already under<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=51988&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2012/10/16/spain-plays-cat-and-mouse-over-bailout/feed/</wfw:commentRss>
		<slash:comments>16</slash:comments>
	<primary_category>Finance</primary_category><primary_category_link>http://business.time.com/category/companies-industries/finance-companies-industries/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/10/spain-national-day.jpg?w=240</featured_image>
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			<media:title type="html">Mariano Rajoy</media:title>
		</media:content>

		<media:content url="http://1.gravatar.com/avatar/783e38ca70db3efb556acb700d4696ed?s=96&#38;d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">petergumbeltime</media:title>
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		<title>Are Average Investors Getting Bilked by Wall Street Supercomputers?</title>
		<link>http://business.time.com/2012/09/24/are-average-investors-getting-bilked-by-wall-street-supercomputers/</link>
		<comments>http://business.time.com/2012/09/24/are-average-investors-getting-bilked-by-wall-street-supercomputers/#comments</comments>
		<pubDate>Mon, 24 Sep 2012 13:00:51 +0000</pubDate>
		<dc:creator>Christopher Matthews</dc:creator>
				<category><![CDATA[Companies & Industries]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Finance]]></category>
		<category><![CDATA[Government]]></category>
		<category><![CDATA[Investing]]></category>
		<category><![CDATA[Wall Street & Markets]]></category>
		<category><![CDATA[high-frequency trading]]></category>
		<category><![CDATA[knight capital]]></category>
		<category><![CDATA[Securities and Exchange Commission]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=49949</guid>
		<description><![CDATA[As long as there has been a Wall Street, there have been those seeking to skim a little (or a lot) off the top of the vast wealth changing hands in the markets each day. Though capital markets in America are by and large very successful at efficiently allocating resources from investors to deserving businesses, wherever there is great wealth, corrupt forces will seek to exploit it. For example, in the 1990s the Nasdaq stock exchange was embroiled in a price-fixing scandal in which securities dealers were found to be colluding to keep bid-ask spreads — or the difference between the prices at which a stock is bought and sold — high in order to bolster profits. Partially in response to scandals of that nature, the stock market — with the blessing of federal regulators — has radically evolved. Once dominated by large not-for-profit exchanges like the New York Stock Exchange and Nasdaq, America&#8217;s capital markets have, over the past decade, become highly decentralized. The majority of trading takes place in a series of for-profit, electronic venues that compete fiercely to facilitate trades and increase profits. This fragmentation was accompanied and encouraged by the rise of high-frequency trading, a term that describes the use of high-powered computer programs to make hundreds or thousands of trades per minute in an attempt to exploit miniscule inefficiencies in the markets. (MORE: High-Frequency Trading: Wall Street’s Doomsday Machine?) One way high-frequency traders like to make money is by watching large institutional investors — the sort that manage money for your 401(k) or public pension funds — and attempting to predict how they will go about making investments. For instance, a computer program might try to interpret moves in the market to see whether a large fund is in the process of buying up a large position in a stock, and then jumping in ahead of those trades before selling for a profit moments later. I’ve written previously about how some critics of high-frequency trading are worried that its dominance of Wall Street poses systemic dangers<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=49949&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2012/09/24/are-average-investors-getting-bilked-by-wall-street-supercomputers/feed/</wfw:commentRss>
		<slash:comments>6</slash:comments>
	<primary_category>Investing</primary_category><primary_category_link>http://business.time.com/category/wall-street-markets/investing-wall-street-markets/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/07/91986414.jpg?w=240</featured_image>
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			<media:title type="html">biz_daytrade_0720</media:title>
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		<media:content url="http://2.gravatar.com/avatar/8f9a71742e964af96ca58c01a0577a0d?s=96&#38;d=http%3A%2F%2F2.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">christopherrmatthews</media:title>
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		<title>Bain Capital, Private Equity Firms Accused of Price Fixing in Lawsuit</title>
		<link>http://business.time.com/2012/09/13/bain-capital-private-equity-firms-accused-of-price-fixing-in-lawsuit/</link>
		<comments>http://business.time.com/2012/09/13/bain-capital-private-equity-firms-accused-of-price-fixing-in-lawsuit/#comments</comments>
		<pubDate>Thu, 13 Sep 2012 12:00:24 +0000</pubDate>
		<dc:creator>Christopher Matthews</dc:creator>
				<category><![CDATA[Companies & Industries]]></category>
		<category><![CDATA[Finance]]></category>
		<category><![CDATA[Legal]]></category>
		<category><![CDATA[Private Equity]]></category>
		<category><![CDATA[Wall Street & Markets]]></category>
		<category><![CDATA[2012 election]]></category>
		<category><![CDATA[bain capital]]></category>
		<category><![CDATA[KKR]]></category>
		<category><![CDATA[lawsuit]]></category>
		<category><![CDATA[mitt romney]]></category>
		<category><![CDATA[private equity]]></category>
		<category><![CDATA[shareholder lawsuit]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=49031</guid>
		<description><![CDATA[According to heavily-redacted court documents unearthed by The New York Times yesterday, former shareholders of the giant hospital-management firm HCA have formally accused Bain Capital and several other private equity firms of price fixing.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=49031&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2012/09/13/bain-capital-private-equity-firms-accused-of-price-fixing-in-lawsuit/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
	<primary_category>Private Equity</primary_category><primary_category_link>http://business.time.com/category/wall-street-markets/private-equity-wall-street-markets/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/09/ap120618149682.jpg?w=240</featured_image>
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		<media:content url="http://timebusinessblog.files.wordpress.com/2012/09/ap120618149682.jpg?w=240" medium="image">
			<media:title type="html">Stephen Schwarzman</media:title>
		</media:content>

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			<media:title type="html">christopherrmatthews</media:title>
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	</item>
		<item>
		<title>New Public-Private Partnerships: The President&#8217;s Stealth Plan To Create Jobs?</title>
		<link>http://business.time.com/2012/09/12/new-public-private-partnership-the-presidents-stealth-plan-to-create-jobs/</link>
		<comments>http://business.time.com/2012/09/12/new-public-private-partnership-the-presidents-stealth-plan-to-create-jobs/#comments</comments>
		<pubDate>Wed, 12 Sep 2012 12:00:49 +0000</pubDate>
		<dc:creator>Gary Belsky</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA[Government]]></category>
		<category><![CDATA[Ideas for Business]]></category>
		<category><![CDATA[Private Equity]]></category>
		<category><![CDATA[Small Business]]></category>
		<category><![CDATA[Start-Ups]]></category>
		<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[employment]]></category>
		<category><![CDATA[entrepreneurship]]></category>
		<category><![CDATA[FFRDC]]></category>
		<category><![CDATA[government research]]></category>
		<category><![CDATA[innovation]]></category>
		<category><![CDATA[job creation]]></category>
		<category><![CDATA[jobs]]></category>
		<category><![CDATA[private equity]]></category>
		<category><![CDATA[start-ups]]></category>
		<category><![CDATA[technology transfer]]></category>
		<category><![CDATA[Thinking Big]]></category>
		<category><![CDATA[unemployment]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=48863</guid>
		<description><![CDATA[Two recently released documents give an inside look at the President's efforts to create jobs.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=48863&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2012/09/12/new-public-private-partnership-the-presidents-stealth-plan-to-create-jobs/feed/</wfw:commentRss>
		<slash:comments>4</slash:comments>
	<primary_category>Government</primary_category><primary_category_link>http://business.time.com/category/economy-policy/government-economy-policy/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/09/151754029.jpg?w=240</featured_image>
		<media:thumbnail url="http://timebusinessblog.files.wordpress.com/2012/09/151754029.jpg?w=240" />
		<media:content url="http://timebusinessblog.files.wordpress.com/2012/09/151754029.jpg?w=240" medium="image">
			<media:title type="html">President Obama campaigns in Florida</media:title>
		</media:content>

		<media:content url="http://1.gravatar.com/avatar/a30699adf88a56f38defec3d45222e08?s=96&#38;d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">garybelsky</media:title>
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