<?xml version="1.0" encoding="UTF-8"?>
<rss version="2.0"
	xmlns:content="http://purl.org/rss/1.0/modules/content/"
	xmlns:wfw="http://wellformedweb.org/CommentAPI/"
	xmlns:dc="http://purl.org/dc/elements/1.1/"
	xmlns:atom="http://www.w3.org/2005/Atom"
	xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
	xmlns:slash="http://purl.org/rss/1.0/modules/slash/"
	xmlns:georss="http://www.georss.org/georss" xmlns:geo="http://www.w3.org/2003/01/geo/wgs84_pos#" xmlns:media="http://search.yahoo.com/mrss/"
	>

<channel>
	<title>Business &#38; MoneyCategory: Europe &#124; Business &#38; Money &#124; TIME.com</title>
	<atom:link href="http://business.time.com/category/economy-policy/europe-economy-policy/feed/" rel="self" type="application/rss+xml" />
	<link>http://business.time.com</link>
	<description>The latest news and commentary on the economy, the markets, and business</description>
	<lastBuildDate>Wed, 22 May 2013 18:28:04 +0000</lastBuildDate>
	<language>en</language>
	<sy:updatePeriod>hourly</sy:updatePeriod>
	<sy:updateFrequency>1</sy:updateFrequency>
	<generator>http://wordpress.com/</generator>
<cloud domain='business.time.com' port='80' path='/?rsscloud=notify' registerProcedure='' protocol='http-post' />
<image>
		<url>http://1.gravatar.com/blavatar/d8fe9c72e6ddb8decc694e4fdd84f015?s=96&#038;d=http%3A%2F%2Fs2.wp.com%2Fi%2Fbuttonw-com.png</url>
		<title>Business &#38; MoneyCategory: Europe &#124; Business &#38; Money &#124; TIME.com</title>
		<link>http://business.time.com</link>
	</image>
	<atom:link rel="search" type="application/opensearchdescription+xml" href="http://business.time.com/osd.xml" title="Business &#38; Money" />
	<atom:link rel='hub' href='http://business.time.com/?pushpress=hub'/>
		<item>
		<title>Eurozone Recession Is Now Longest in Currency Bloc</title>
		<link>http://business.time.com/2013/05/15/eurozone-recession-extends-into-6th-quarter/</link>
		<comments>http://business.time.com/2013/05/15/eurozone-recession-extends-into-6th-quarter/#comments</comments>
		<pubDate>Wed, 15 May 2013 14:31:16 +0000</pubDate>
		<dc:creator>AP / Pan Pylas and Sarah DiLorenzo</dc:creator>
				<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Europe]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=80071</guid>
		<description><![CDATA[(PARIS) — The eurozone is now in its longest ever recession — a stubborn slump that has surpassed even the calamity that hit the region in the financial crisis of 2008-2009. The European Union statistics office said Wednesday that nine of the 17 EU countries that use the euro are in recession, with France a notable addition to the list. Overall, the eurozone&#8217;s economy contracted for the sixth straight quarter, shrinking by 0.2 percent in the January-March period from the previous three months. Though the contraction is an improvement on the previous quarter&#8217;s 0.6 percent decline, it&#8217;s another unwelcome report for the single-currency bloc as it grapples with a debt crisis that has prompted governments to slash spending and raise taxes. &#8220;The eurozone is facing a double blow from necessary restructuring of its domestic economy and somewhat disappointing growth in world trade, in particular demand from emerging markets,&#8221; said Marie Diron, senior economic adviser to Ernst &#38; Young. This recession is not nearly as deep as the one in 2008-9, which ran for five quarters, but it is now the longest in the 14-year history of the euro. A recession is typically defined as two straight quarters of negative growth. (MORE: EU Predicts Eurozone Recession to Continue in 2013) Austerity measures have inflicted severe economic pain and produced social unrest across the eurozone, where the average unemployment rate is a record 12.1 percent and higher in some places. In Spain, it&#8217;s 26.7 percent and in Greece 27.2 percent. Wednesday&#8217;s report also brought bad news for the wider 27-country EU, which includes non-euro members such as Britain and Poland. The EU too is now in recession after shrinking by a quarterly rate of 0.1 percent in the first quarter, following a 0.5 percent drop in the previous period. With a population of more than half a billion people, the EU is the world&#8217;s largest export market. If it remains stuck in reverse, companies in the U.S. and Asia will be hit. Last month, U.S.-based Ford Motor Co. lost $462 million in<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=80071&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/05/15/eurozone-recession-extends-into-6th-quarter/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>Europe</primary_category><primary_category_link>http://business.time.com/category/economy-policy/europe-economy-policy/</primary_category_link>
		<media:content url="http://0.gravatar.com/avatar/cbef58d71daefb9ddab6c6b20018290c?s=96&#38;d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">timeassociatedpress</media:title>
		</media:content>
	</item>
		<item>
		<title>EU Predicts Eurozone Recession to Continue in 2013</title>
		<link>http://business.time.com/2013/05/03/eu-predicts-eurozone-recession-to-continue-in-2013/</link>
		<comments>http://business.time.com/2013/05/03/eu-predicts-eurozone-recession-to-continue-in-2013/#comments</comments>
		<pubDate>Fri, 03 May 2013 15:29:12 +0000</pubDate>
		<dc:creator>Raf Casert</dc:creator>
				<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Europe]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=79278</guid>
		<description><![CDATA[BRUSSELS — Europe will take longer to recover from its economic crisis as it tackles a worse-than-expected recession in the eurozone and unemployment at record levels, the European Union warned Friday. In its spring economic forecast, the EU said that gross domestic product in the 17 member countries that use the euro will shrink by 0.4 percent this year, better than the 0.6 percent contraction in 2012 but 0.1 percentage points worse than the EU had forecast back in February. The report also had bad news for the wider 27-country EU: it now expects the region&#8217;s economy to shrink by 0.1 percent in 2013, against a forecast of 0.1 percent growth in February. &#8220;Grappling with the aftermath of a profound financial and economic crisis, the EU economy is set to pick up speed only very slowly in the course of this year,&#8221; the report said. The grim outlook even forced EU Commissioner Olli Rehn to raise the specter that France, the bloc&#8217;s second biggest economy, may be given two extra years to bring its deficit within the target 3 percent of gross domestic product needed for a sustainable future. (MORE: Jobs Report: Economy Avoids &#8216;Spring Swoon&#8217; As Unemployment Rate Falls) With a population of more than half a billion people, the EU is world&#8217;s largest export market. If the region&#8217;s economy remains stuck in reverse, order books for companies in the U.S. and Asia will be hit. Last week, U.S.-based Ford Motor Co. lost $462 million in Europe and called the outlook there &#8220;uncertain,&#8221; although the company&#8217;s global earnings rose 15 percent to $1.6 billion. After the eurozone crisis over too much debt broke in late 2009, the region&#8217;s governments slashed spending and raised taxes — either to meet conditions for bailout loans, or to reassure jittery bond markets. But austerity has also inflicted severe economic pain. Slashing spending and raising taxes have proved to be less effective at reducing deficits than initially thought. As economies shrink, so do their tax revenues, potentially making it harder to close budget gaps.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=79278&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/05/03/eu-predicts-eurozone-recession-to-continue-in-2013/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>Europe</primary_category><primary_category_link>http://business.time.com/category/economy-policy/europe-economy-policy/</primary_category_link>
		<media:content url="http://0.gravatar.com/avatar/cbef58d71daefb9ddab6c6b20018290c?s=96&#38;d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">timeassociatedpress</media:title>
		</media:content>
	</item>
		<item>
		<title>Too Cold for a Cold One? Big Beer Companies Blame Mother Nature for Slumping Sales</title>
		<link>http://business.time.com/2013/05/03/too-cold-for-a-cold-one-big-beer-companies-blame-mother-nature-for-slumping-sales/</link>
		<comments>http://business.time.com/2013/05/03/too-cold-for-a-cold-one-big-beer-companies-blame-mother-nature-for-slumping-sales/#comments</comments>
		<pubDate>Fri, 03 May 2013 09:45:53 +0000</pubDate>
		<dc:creator>Brad Tuttle</dc:creator>
				<category><![CDATA[Austerity]]></category>
		<category><![CDATA[Companies & Industries]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Europe]]></category>
		<category><![CDATA[Food and Beverage Industry]]></category>
		<category><![CDATA[Marketing]]></category>
		<category><![CDATA[Saving & Spending]]></category>
		<category><![CDATA[Smart Spending]]></category>
		<category><![CDATA[Taxes]]></category>
		<category><![CDATA[alcohol]]></category>
		<category><![CDATA[Anheuser-Busch]]></category>
		<category><![CDATA[Anheuser-Busch InBev]]></category>
		<category><![CDATA[Bud Light]]></category>
		<category><![CDATA[Budweiser]]></category>
		<category><![CDATA[craft beer]]></category>
		<category><![CDATA[Heineken]]></category>
		<category><![CDATA[Miller Lite]]></category>
		<category><![CDATA[spirits]]></category>
		<category><![CDATA[weather]]></category>
		<category><![CDATA[wine]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=79178</guid>
		<description><![CDATA[Does bad weather correlate with less drinking? Well, perhaps it does with certain kinds of drinking. Unseasonably cold weather in Brazil, Europe and the U.S. is being blamed as one of the reasons sales are down in early 2013 for Bud Light, Miller Lite, Heineken and other mass-produced brews favored at picnics and tailgates. As more drinkers turn to craft beer, spirits and wine, they&#8217;ve been snubbing the ubiquitous brews that have been featured in TV ads for decades. Budweiser, the &#8220;king of beers,&#8221; saw sales decline 4.4% in 2011, for example, followed by another dip of around 6% last year. So the recent reports indicating that Anheuser-Busch InBev&#8217;s sales volume in the U.S. declined 5% in the first quarter of 2013 don&#8217;t come as much of a surprise. Neither does the news, highlighted in an AdAge story, that A-B InBev&#8217;s flagship Bud and Bud Light brands were down 7.7% and 6%, respectively, for the four-week sales period ending April 13. Miller Lite sales, meanwhile, declined 8.8% during that same four-week span, and Coors Light and Heineken experienced sales decreases as well. (MORE: Trouble Brewing? The Craft Beer vs. &#8216;Crafty&#8217; Beer Catfight) Yet even as diminishing sales for these well-known brands clearly seem to be part of a larger trend that&#8217;s been in the works for years as consumer tastes change, beer manufacturers are pointing to poor weather, higher taxes and rising gas prices as reasons why sales are down. In late April, Heineken CFO Rene Hooft Graafland told analysts that bad weather in Europe and North America was partially to blame for the brand suffering a 4.7% global sales slump at the end of last year. This week, Carlos Brito, CEO of A-B InBev, the world&#8217;s largest beer company, said sales were down thanks to poor weather and food inflation in Brazil, as well as higher gas prices and weather in early 2013 that was considerably colder in the U.S. than the previous year. Indeed, weather does seem to play a factor in sales of certain beers. &#8220;Light lagers [like Bud<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=79178&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/05/03/too-cold-for-a-cold-one-big-beer-companies-blame-mother-nature-for-slumping-sales/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/2012/07/sb10070109j-001-e13437518721551.jpg?w=240</featured_image>
		<media:thumbnail url="http://timebusinessblog.files.wordpress.com/2012/07/sb10070109j-001-e13437518721551.jpg?w=240" />
		<media:content url="http://timebusinessblog.files.wordpress.com/2012/07/sb10070109j-001-e13437518721551.jpg?w=240" medium="image">
			<media:title type="html">beer</media:title>
		</media:content>

		<media:content url="http://0.gravatar.com/avatar/f8de938518e7b986d552694ed99aa54d?s=96&#38;d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">bradtuttle</media:title>
		</media:content>
	</item>
		<item>
		<title>Euro Falters on ECB Hint of Negative Deposit Rate</title>
		<link>http://business.time.com/2013/05/02/euro-falters-on-ecb-hint-of-negative-deposit-rate/</link>
		<comments>http://business.time.com/2013/05/02/euro-falters-on-ecb-hint-of-negative-deposit-rate/#comments</comments>
		<pubDate>Thu, 02 May 2013 15:24:16 +0000</pubDate>
		<dc:creator>AP / Pan Pylas</dc:creator>
				<category><![CDATA[Europe]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=79169</guid>
		<description><![CDATA[(LONDON) — An interest rate cut from the European Central Bank and hints it may take further measures failed to give European markets a lift Thursday amid ongoing worries about the state of the eurozone economy. U.S. stocks recovered their poise in the run-up to monthly payrolls data Friday. The euro was a big loser Thursday after Mario Draghi, the European Central Bank&#8217;s president, said the institution was ready to charge banks that decide to keep deposits at the bank. A negative deposit rate would ostensibly push banks to lend more rather than hoard cash. Draghi conceded he was &#8220;frustrated&#8221; that the banks weren&#8217;t lending more. The deposit rate is currently zero percent but wasn&#8217;t cut alongside the main benchmark rate. The central bank, which sets interest rates for the 17 European Union countries that use the euro, cut its benchmark rate by a quarter of a percentage point to a new record low of 0.5 percent. The decision was widely anticipated following a grim run of economic data for the eurozone. Following his confirmation that negative deposit rates were technically possible, the euro fell sharply. It was trading 0.8 percent lower at $1.3074, having traded 0.2 percent earlier in the wake of the interest rate reduction. Given that the rate cut was largely priced in by the markets — and there are ongoing concerns over the state of the eurozone — stocks in Europe were fairly subdued as many investors also reacted to Wednesday&#8217;s disappointing U.S. economic data following their return from a public holiday. The CAC-40 in France was 0.2 percent lower at 3,850 while Germany&#8217;s DAX rose 0.3 percent to 7,941. The FTSE 100 index of leading British shares, which was not on holiday on Wednesday, was steady at 6,453. Few expect Thursday&#8217;s rate cut by the ECB to make much of a difference to the languishing eurozone economy, which is expected to stay in recession when first-quarter figures are published later this month. &#8220;The cut is a symbolic gesture to reassure struggling eurozone countries that it<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=79169&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/05/02/euro-falters-on-ecb-hint-of-negative-deposit-rate/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>Europe</primary_category><primary_category_link>http://business.time.com/category/economy-policy/europe-economy-policy/</primary_category_link>
		<media:content url="http://0.gravatar.com/avatar/cbef58d71daefb9ddab6c6b20018290c?s=96&#38;d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">timeassociatedpress</media:title>
		</media:content>
	</item>
		<item>
		<title>ECB Cuts Benchmark Interest Rate to 0.5 Percent</title>
		<link>http://business.time.com/2013/05/02/ecb-cuts-benchmark-interest-rate-to-0-5-percent/</link>
		<comments>http://business.time.com/2013/05/02/ecb-cuts-benchmark-interest-rate-to-0-5-percent/#comments</comments>
		<pubDate>Thu, 02 May 2013 12:16:30 +0000</pubDate>
		<dc:creator>Associated Press</dc:creator>
				<category><![CDATA[Europe]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=79145</guid>
		<description><![CDATA[(FRANKFURT, Germany) — The European Central Bank has cut its benchmark interest rate to a new record low to stimulate the lagging economy in the 17 countries that use the euro. The bank&#8217;s rate-setting council lowered the refinancing rate a quarter-point to 0.5 percent at a meeting in Bratislava, Slovakia. The move comes amid fears the eurozone economy may not recover later in the year from its recession. In theory, a cut helps companies by lowering borrowing costs for banks that have borrowed from the ECB so they could loan more. It also signals the ECB&#8217;s willingness to support the economy. Economists, however, warn this cut may not have much direct effect since banks are not passing on low rates in indebted countries that need help the most.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=79145&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/05/02/ecb-cuts-benchmark-interest-rate-to-0-5-percent/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>Europe</primary_category><primary_category_link>http://business.time.com/category/economy-policy/europe-economy-policy/</primary_category_link>
		<media:content url="http://0.gravatar.com/avatar/cbef58d71daefb9ddab6c6b20018290c?s=96&#38;d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">timeassociatedpress</media:title>
		</media:content>
	</item>
		<item>
		<title>Is the Price of Gold Signaling an Economic Slowdown?</title>
		<link>http://business.time.com/2013/04/29/is-the-price-of-gold-signaling-an-economic-slowdown/</link>
		<comments>http://business.time.com/2013/04/29/is-the-price-of-gold-signaling-an-economic-slowdown/#comments</comments>
		<pubDate>Mon, 29 Apr 2013 09:45:40 +0000</pubDate>
		<dc:creator>Michael Sivy</dc:creator>
				<category><![CDATA[Austerity]]></category>
		<category><![CDATA[Bonds]]></category>
		<category><![CDATA[Commodities]]></category>
		<category><![CDATA[Economic Indicators]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Emerging Markets]]></category>
		<category><![CDATA[Energy]]></category>
		<category><![CDATA[Europe]]></category>
		<category><![CDATA[Federal Reserve]]></category>
		<category><![CDATA[Investing]]></category>
		<category><![CDATA[Markets]]></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[World Finance]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=78807</guid>
		<description><![CDATA[Friday’s GDP number was a disappointment. The consensus among economists was that growth for the first quarter would be at least 3% (at an annual rate adjusted for inflation). The actual number was only 2.5%. And even that wasn’t as good as it looked. Growth late last year was very weak, so part of the first-quarter gain was simply a short-term bounce back from the previous quarter. Nonetheless, those results appear to fit with conventional wisdom: A lethargic economy has managed to crank out minimal but steady growth for almost four years. And the outlook is slowly getting better rather than getting worse. Some contrarians challenge that view. They sees signs that the U.S. economy is losing momentum and is heading for another slowdown, if not another recession. The leading indicators of such a future downturn include price trends for important commodities, as well as for Treasury bonds. The most significant bellwether is the recent drop in the price of gold – the sharpest in 30 years. Since the U.S. abandoned the gold standard in the mid-1970s, consumer prices have quadrupled, but gold has risen more than ten-fold. The gold price hasn’t moved higher consistently – it was relatively flat during much of the 1980s and ’90s. But there have been only three periods in which gold prices suffered a significant and rapid decline. The first was from 1980 to ’82, when Federal Reserve chairman Paul Volcker raised interest rates to crush double-digit inflation and the U.S. economy experienced two closely spaced recessions. The second was in 2008, when the financial crisis caused a credit crunch and a worldwide recession. (MORE: A Nation of Renters: Should We Be Worried That Fewer Americans Own Homes?) The third period began in 2011, when gold peaked at $1,896 an ounce. Since then, the price has fallen to $1,440. Strikingly, this decline is occurring at a time when the Fed is pumping money into the banking system, interest rates are extremely low, and the U.S. economy has not had a negative quarter for nearly four years. Why<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=78807&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/04/29/is-the-price-of-gold-signaling-an-economic-slowdown/feed/</wfw:commentRss>
		<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/2013/04/rtxymy9-copy.jpg?w=240</featured_image>
		<media:thumbnail url="http://timebusinessblog.files.wordpress.com/2013/04/rtxymy9-copy.jpg?w=240" />
		<media:content url="http://timebusinessblog.files.wordpress.com/2013/04/rtxymy9-copy.jpg?w=240" medium="image">
			<media:title type="html">Watches and gold jewellery in a display case inside the Gold Standard jewellery store, specializing in purchasing raw gold and silver in New York City, on April 15, 2013.</media:title>
		</media:content>

		<media:content url="http://2.gravatar.com/avatar/b8875a12f713f52ecc28fe72efed7fd4?s=96&#38;d=http%3A%2F%2F2.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">michaelsivy</media:title>
		</media:content>
	</item>
		<item>
		<title>Europeans Are Thinking the Unthinkable: That Debt Defaults Might Make Sense</title>
		<link>http://business.time.com/2013/04/23/europeans-are-thinking-the-unthinkable-that-debt-defaults-might-make-sense/</link>
		<comments>http://business.time.com/2013/04/23/europeans-are-thinking-the-unthinkable-that-debt-defaults-might-make-sense/#comments</comments>
		<pubDate>Tue, 23 Apr 2013 07:00:01 +0000</pubDate>
		<dc:creator>Michael Sivy</dc:creator>
				<category><![CDATA[Austerity]]></category>
		<category><![CDATA[Banking]]></category>
		<category><![CDATA[Bonds]]></category>
		<category><![CDATA[Currency]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Europe]]></category>
		<category><![CDATA[Government]]></category>
		<category><![CDATA[Investing]]></category>
		<category><![CDATA[Labor]]></category>
		<category><![CDATA[Wall Street & Markets]]></category>
		<category><![CDATA[World Finance]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=78185</guid>
		<description><![CDATA[The euro-zone crisis has slipped off the radar screen during the past couple of weeks as gun control and the Boston bombers have dominated U.S. news. But none of the euro zone’s problems have gone away. Political crises beset France, Italy and Spain. Smaller countries, from Portugal to Cyprus, face even more pressing financial troubles. Germany grows less and less willing to foot the bill for bailouts. And for the first time, serious public figures in Europe have begun openly discussing the pros and cons of allowing countries to default on their national debt. There is, in fact, a historical case for tolerating default. Argentina suffered a financial crisis in 1999 that led to a period of high unemployment. Over the next several years, it became harder and harder to maintain the value of currency. In 2002, the country defaulted on more than $100 billion in debt. Inflation soared, and workers&#8217; purchasing power plummeted. Savers lost a big chunk of their money. But a year later, growth bounced back to an 8% to 9% annual rate, and wages rose even faster. The same issues arose during the 2008 banking crisis. Ireland bailed out its banks, while Iceland couldn’t afford to and allowed a partial default. The results were that Ireland had no inflation, but unemployment topped 14% as growth ground almost to a halt. By contrast, in Iceland the currency lost almost half its value and inflation reached 5.4%. However, economic growth picked up slightly and unemployment didn’t rise much above 6%. (MORE: Why the Case for Austerity Took a Big Hit) In all these cases, policymakers had to choose whether working people or financial interests should be the ones to suffer most during a serious economic crisis. Default hurt affluent savers and financial institutions, but proved to be better for ordinary workers over the long term. What is happening now in Europe is that populations are resisting further austerity. In response, politicians and technocrats are beginning to question whether default might ultimately be less painful than doing what will be required to keep<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=78185&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/04/23/europeans-are-thinking-the-unthinkable-that-debt-defaults-might-make-sense/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>Europe</primary_category><primary_category_link>http://business.time.com/category/economy-policy/europe-economy-policy/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2013/04/biz-euro-default-130422.jpg?w=240</featured_image>
		<media:thumbnail url="http://timebusinessblog.files.wordpress.com/2013/04/biz-euro-default-130422.jpg?w=240" />
		<media:content url="http://timebusinessblog.files.wordpress.com/2013/04/biz-euro-default-130422.jpg?w=240" medium="image">
			<media:title type="html">A man walks past a closed down business in Madrid</media:title>
		</media:content>

		<media:content url="http://2.gravatar.com/avatar/b8875a12f713f52ecc28fe72efed7fd4?s=96&#38;d=http%3A%2F%2F2.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">michaelsivy</media:title>
		</media:content>
	</item>
		<item>
		<title>Was Thatcherism Good (or Bad) for the Economy?</title>
		<link>http://business.time.com/2013/04/09/was-thatcherism-good-or-bad-for-the-economy/</link>
		<comments>http://business.time.com/2013/04/09/was-thatcherism-good-or-bad-for-the-economy/#comments</comments>
		<pubDate>Tue, 09 Apr 2013 07:00:28 +0000</pubDate>
		<dc:creator>Rana Foroohar</dc:creator>
				<category><![CDATA[Austerity]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Europe]]></category>
		<category><![CDATA[Government]]></category>
		<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=77178</guid>
		<description><![CDATA[Margaret Thatcher was known as the woman who, from 1979 to 1990, brought austerity and — at least for part of her tenure — economic growth to a stagflation-riddled Britain. She’s also known as a heedless free-market deregulator who set the stage for financial boom and bust, as well as for growing inequality. At a time when the debate over growth and austerity is front and center in the U.K., the U.S., Europe and much of the rest of the world, what is the legacy of Thatcher economics? Below, a look at some of the Iron Lady’s key economic ideas and what, if anything, they have to teach us today. A focus on inflation vs. unemployment. Perhaps it was justified back then, given that inflation in Britain in the late 1970s was heading toward 20%. But as Capital Economics managing director Roger Bootle points out in his smart look at Thatcher’s legacy in the Telegraph, the result of the government’s policy of fighting inflation by hiking interest rates fast and hard was “a cripplingly high pound, which devastated much of British industry, causing unemployment to soar.” Poverty and inequality went up radically under Thatcher, and the latter has stayed high since, a factor that many economists believe has impeded a more robust consumer recovery. While mass privatization (some of it successful, some not) did eventually create growth during the Thatcher years, GDP never rose by more than a couple of percentage points annually, even during the 1980s boom years. The verdict: in an era in which globalization and technology are keeping inflation down over the long term, and unemployment high, the Iron Lady’s policies are retro, and would be counterproductive. Public spending and tax cuts. Both Thatcher and her U.S. counterpart Ronald Reagan wanted to boost markets and shrink the state, but Reagan was a supply sider who focused almost solely on tax cuts (indeed the amount of public spending relative to GDP actually increased under Reagan). Not so the British conservatives. Thatcher was somewhat less enamored of “trickle-down economics” than Reagan and ultimately believed<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=77178&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/04/09/was-thatcherism-good-or-bad-for-the-economy/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>Europe</primary_category><primary_category_link>http://business.time.com/category/economy-policy/europe-economy-policy/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2013/04/108108482.jpg?w=240</featured_image>
		<media:thumbnail url="http://timebusinessblog.files.wordpress.com/2013/04/108108482.jpg?w=240" />
		<media:content url="http://timebusinessblog.files.wordpress.com/2013/04/108108482.jpg?w=240" medium="image">
			<media:title type="html">Margaret Thatcher</media:title>
		</media:content>

		<media:content url="http://1.gravatar.com/avatar/1c372315300738b8325eb1812b2ba263?s=96&#38;d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">ranaforoohar</media:title>
		</media:content>
	</item>
		<item>
		<title>Boob Tube Saturation: After TV Sales Decline Worldwide, Will Price Drops Follow?</title>
		<link>http://business.time.com/2013/04/05/boob-tube-saturation-after-tv-sales-decline-worldwide-will-price-drops-follow/</link>
		<comments>http://business.time.com/2013/04/05/boob-tube-saturation-after-tv-sales-decline-worldwide-will-price-drops-follow/#comments</comments>
		<pubDate>Fri, 05 Apr 2013 14:00:44 +0000</pubDate>
		<dc:creator>Brad Tuttle</dc:creator>
				<category><![CDATA[Companies & Industries]]></category>
		<category><![CDATA[Europe]]></category>
		<category><![CDATA[Future of TV]]></category>
		<category><![CDATA[Retail]]></category>
		<category><![CDATA[Saving]]></category>
		<category><![CDATA[Saving & Spending]]></category>
		<category><![CDATA[Smart Spending]]></category>
		<category><![CDATA[Technology & Media]]></category>
		<category><![CDATA[electronics]]></category>
		<category><![CDATA[japan]]></category>
		<category><![CDATA[LCD TVs]]></category>
		<category><![CDATA[tv]]></category>
		<category><![CDATA[TV sales]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=76654</guid>
		<description><![CDATA[Consumers aren&#8217;t falling out of love with their TVs. More likely, they can&#8217;t justify replacing the big new TV they purchased not long ago, or they&#8217;ve run out of places to put yet another screen. The TV market hit a wall last year, according to a report from IHS iSuppli. Global shipments of LCD units declined for the first time ever, and all shipments of all TVs dipped by 6.3% compared to 2011. Sales dropped particularly sharply in regions that traditionally have the most disposable income, and the biggest appetites for new tech: Japan, Western Europe, and North America. IHS analysts expect TV sales to remain flat for a couple more years, before creeping upward in 2015. And why have TV sales fallen? The report suggests that part of the reason is that consumers already have their fill of TVs after scooping up new units in recent years: In North America, the decline was caused by a mixture of economic factors and by the fact that consumers had increased their demand in 2010 and 2011. By 2012, however, buyers had expended their disposable income for television purchases. (MORE: Analyst Says 60-Inch Apple iTV to Launch This Year) &#8220;Developed markets have become saturated with flat-panel televisions,&#8221; said IHS analyst Tom Morrod. A recent NPD DisplaySearch study likewise noted that global LCD shipments dropped for the first time ever last year, with demand declining especially prominently in Japan and Western Europe. TV saturation isn&#8217;t the only factor that&#8217;s led to weak sales. TV prices haven&#8217;t been especially good, as electronics manufacturers have been more reluctant to resort to the deep levels of discounting seen during the peak Great Recession years. “Economic conditions certainly had an impact on demand, but a very mild price erosion also played a role,&#8221; said Paul Gagnon, NPD&#8217;s Director of global TV research. Average prices for flat-panel TVs fell just 2% in 2012, according to Gagnon, compared to a 5% drop in 2011 and declines in excess of 10% the year before. It&#8217;s not that prices are all<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=76654&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/04/05/boob-tube-saturation-after-tv-sales-decline-worldwide-will-price-drops-follow/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>Retail</primary_category><primary_category_link>http://business.time.com/category/companies-industries/retail-big-companies/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/03/84869872-e13310519639831.jpg?w=240</featured_image>
		<media:thumbnail url="http://timebusinessblog.files.wordpress.com/2012/03/84869872-e13310519639831.jpg?w=240" />
		<media:content url="http://timebusinessblog.files.wordpress.com/2012/03/84869872-e13310519639831.jpg?w=240" medium="image">
			<media:title type="html">HD, LCD TV</media:title>
		</media:content>

		<media:content url="http://0.gravatar.com/avatar/f8de938518e7b986d552694ed99aa54d?s=96&#38;d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">bradtuttle</media:title>
		</media:content>
	</item>
		<item>
		<title>Is the Global Economy Slowly Falling Apart?</title>
		<link>http://business.time.com/2013/04/05/is-the-global-economy-slowly-falling-apart/</link>
		<comments>http://business.time.com/2013/04/05/is-the-global-economy-slowly-falling-apart/#comments</comments>
		<pubDate>Fri, 05 Apr 2013 12:00:39 +0000</pubDate>
		<dc:creator>Michael Sivy</dc:creator>
				<category><![CDATA[Austerity]]></category>
		<category><![CDATA[Bonds]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Energy]]></category>
		<category><![CDATA[Europe]]></category>
		<category><![CDATA[Federal Reserve]]></category>
		<category><![CDATA[Government]]></category>
		<category><![CDATA[Information Technology]]></category>
		<category><![CDATA[Investing]]></category>
		<category><![CDATA[Markets]]></category>
		<category><![CDATA[Media]]></category>
		<category><![CDATA[Oil]]></category>
		<category><![CDATA[Portfolio Strategy]]></category>
		<category><![CDATA[Stocks]]></category>
		<category><![CDATA[Taxes]]></category>
		<category><![CDATA[Technology & Media]]></category>
		<category><![CDATA[Wall Street & Markets]]></category>
		<category><![CDATA[World Finance]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=76345</guid>
		<description><![CDATA[It’s conventional wisdom that the U.S. economy is steadily recovering from the recession, even if progress is slow and disappointing. But there’s also a widespread sense that long-term economic prospects are deteriorating all around the world. Young people can’t find jobs. Budgets keep being cut in both the public and the private sectors. And the projected increase in debt over the next decade figures to be a huge burden for the most highly developed economies. Political systems seem unable to cope with problems that ought to be fairly easy to solve, or at least contain. As the recent crisis in Cyprus demonstrates, a minor dislocation can become a threat to the entire global financial system overnight. The U.S. is deeply troubled too. Deficits remain enormous, and the checks and balances of the political system have turned into a logjam. In a new book, David Stockman, President Ronald Reagan’s budget director, chronicles the relentless downward spiral of America’s political and financial systems. He concludes: “The future is bleak &#8230; When the latest bubble pops, there will be nothing to stop the collapse.” This view may be extreme, but there’s hard evidence to substantiate the idea that the global economy is becoming more rickety. Although the developed world today is considerably richer overall than it was when Stockman worked in the Reagan Administration, creditworthiness has been steadily declining. The global supply of AAA-rated government bonds has shrunk by more than 60% since the financial crisis began. And while dozens of big U.S. corporations had top bond ratings 30 years ago, today that group has dwindled to four: Automatic Data Processing, Exxon Mobil, Johnson &#38; Johnson and Microsoft. How seriously should we take these bellwethers? Although there are real problems that need to be solved, the long-term picture doesn&#8217;t look entirely bleak. Four major trends will determine global economy stability in the long run: (MORE: Marx&#8217;s Revenge: How Class Struggle Is Shaping the World) Demographics Populations develop bulges because of changing birthrates. In the most simplistic terms, a bulge of high-spirited young people correlates with<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=76345&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/04/05/is-the-global-economy-slowly-falling-apart/feed/</wfw:commentRss>
		<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>
		<media:content url="http://2.gravatar.com/avatar/b8875a12f713f52ecc28fe72efed7fd4?s=96&#38;d=http%3A%2F%2F2.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">michaelsivy</media:title>
		</media:content>
	</item>
		<item>
		<title>Why Derivatives May Be the Biggest Risk for the Global Economy</title>
		<link>http://business.time.com/2013/03/27/why-derivatives-may-be-the-biggest-risk-for-the-global-economy/</link>
		<comments>http://business.time.com/2013/03/27/why-derivatives-may-be-the-biggest-risk-for-the-global-economy/#comments</comments>
		<pubDate>Wed, 27 Mar 2013 15:06:48 +0000</pubDate>
		<dc:creator>Michael Sivy</dc:creator>
				<category><![CDATA[Banking]]></category>
		<category><![CDATA[Bonds]]></category>
		<category><![CDATA[Commodities]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[Economics & Policy]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Europe]]></category>
		<category><![CDATA[Exchanges]]></category>
		<category><![CDATA[Federal Reserve]]></category>
		<category><![CDATA[Financial Reform]]></category>
		<category><![CDATA[Financial Regulation]]></category>
		<category><![CDATA[Government]]></category>
		<category><![CDATA[Investing]]></category>
		<category><![CDATA[Investment Banking]]></category>
		<category><![CDATA[Markets]]></category>
		<category><![CDATA[Municipal Government]]></category>
		<category><![CDATA[Private Equity]]></category>
		<category><![CDATA[Stocks]]></category>
		<category><![CDATA[The Economy]]></category>
		<category><![CDATA[Too-Big-To-Fail]]></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=75881</guid>
		<description><![CDATA[Four years after the U.S. recession ended, the global economy is still beset by problems. The present danger comes from Cyprus – where the sea foam once gave birth to the goddess Aphrodite but now only creates froth in panicky financial markets. The proposed bailout plan for troubled Cypriot banks would impose losses of up to 40% on the largest depositors. And that, in turn, could undermine confidence in the banks of other troubled euro zone countries. Cyprus is only the latest challenge for global financial stability, however. In the U.S., deteriorating urban finances – from Detroit to Stockton, Calif. – threaten municipal bond holders, public-sector workers, and taxpayers. In addition, a rise in long-term interest rates seems inevitable sooner or later, either because of inflation or because the Federal Reserve backs away from its easy-money policies. Higher interest rates would mean big losses for bond investors, and also for government-sponsored entities, such as Fannie Mae and Freddie Mac, that hold mortgage-backed assets. The greatest risk of all, however, may be one of the least visible – namely, the expanding, shadowy market for derivatives. These highly sophisticated investments have contributed to financial disasters from the 2008 bankruptcy of Lehman Brothers to J.P. Morgan’s 2012 trading losses in London, which totaled more than $6 billion. (MORE: The $600 Billion the IRS Can&#8217;t Collect) Basically, derivatives are financial contracts with values that are derived from the behavior of something else – interest rates, stock indexes, mortgages, commodities, or even the weather. Just as homebuyers make only a down payment when they buy a house with a mortgage, derivatives traders put down only a small amount of cash. Moreover, one derivative can be used to offset or serve as collateral for another. The result is that a massive edifice of derivatives can be supported by a relatively small amount of real money. Some derivatives, such as typical stock options, trade on exchanges. But many are simply private contracts between banks or other sophisticated investors. As a result, it’s hard to know the total<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=75881&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/03/27/why-derivatives-may-be-the-biggest-risk-for-the-global-economy/feed/</wfw:commentRss>
		<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>
		<media:content url="http://2.gravatar.com/avatar/b8875a12f713f52ecc28fe72efed7fd4?s=96&#38;d=http%3A%2F%2F2.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">michaelsivy</media:title>
		</media:content>
	</item>
		<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>
		<category><![CDATA[Economic Indicators]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<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>
		<wfw:commentRss>http://business.time.com/2013/03/20/can-the-u-s-dollar-become-almighty-once-again/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>World Finance</primary_category><primary_category_link>http://business.time.com/category/world-finance/</primary_category_link>
		<media:content url="http://2.gravatar.com/avatar/b8875a12f713f52ecc28fe72efed7fd4?s=96&#38;d=http%3A%2F%2F2.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">michaelsivy</media:title>
		</media:content>
	</item>
		<item>
		<title>Dow Jones Closes at Record High — So What?</title>
		<link>http://business.time.com/2013/03/06/dow-jones-closes-at-record-high-so-what/</link>
		<comments>http://business.time.com/2013/03/06/dow-jones-closes-at-record-high-so-what/#comments</comments>
		<pubDate>Wed, 06 Mar 2013 10:45:15 +0000</pubDate>
		<dc:creator>Martha C. White</dc:creator>
				<category><![CDATA[Bonds]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Europe]]></category>
		<category><![CDATA[Federal Reserve]]></category>
		<category><![CDATA[Financial Planning]]></category>
		<category><![CDATA[Investing]]></category>
		<category><![CDATA[Stocks]]></category>
		<category><![CDATA[Wall Street]]></category>
		<category><![CDATA[Wall Street & Markets]]></category>
		<category><![CDATA[Dow]]></category>
		<category><![CDATA[Dow Jones Industrial Average]]></category>
		<category><![CDATA[Fed]]></category>
		<category><![CDATA[S&P]]></category>
		<category><![CDATA[short-term interest rates]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=73949</guid>
		<description><![CDATA[When the trading day ended on Tuesday, the Dow Jones Industrial Average closed at a record high of 14,253.77. It surpassed the index&#8217;s previous closing high of 14,164.53 reached back in the pre-recession days of October 2007. For all the headlines devoted to the event, you&#8217;d think this was a really big deal — either a signal that our economy has zoomed past the lingering aftereffects of the Great Recession, or evidence of a bubble about to pop, as CNBC wondered a little while ago. The reality is probably much less exciting. &#8220;Investors should curb their enthusiasm,&#8221; says Mitchell O. Goldberg, president of ClientFirst Strategy. Experts say the Dow&#8217;s record high means relatively little in the grand scheme of things. Here are a few reasons why: The Dow Doesn&#8217;t Reflect the Entire Economy &#8220;To the average guy in the public, the Dow means the market,&#8221; says Wayne S. Kaufman, chief market analyst at John Thomas Financial. &#8220;But it’s only 30 stocks.&#8221; What&#8217;s more, the index is price-weighted, meaning more expensive stocks have an outsized impact on the number. The 30 stocks that currently constitute the Dow Jones Industrial Average make up a pretty narrow slice of American economic output. Analysts say the S&#38;P 500, a much bigger index, is more reflective of the market as a whole. (It ended Tuesday at a five-year high, but fell short of record-breaking status.) (MORE: Are We Already Planting the Seeds of the Next Financial Crisis?) Also, the companies included in the Dow have changed over the years, and inflation is not factored in, so measuring today&#8217;s record against its previous high is an apples-to-oranges comparison. &#8220;When you see the Dow hitting new highs, it’s not the same Dow we had in &#8217;07,&#8221; Goldberg says. He points out that manufacturing stalwart General Motors was booted out, as were Citigroup and Kraft, and he argues the current index skews too tech-heavy to encompass the true scope of the U.S. economy. The Fed Did This &#8212; and It Can Undo It Too Stocks have been particularly buoyant because they&#8217;re floating<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=73949&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/03/06/dow-jones-closes-at-record-high-so-what/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>Stocks</primary_category><primary_category_link>http://business.time.com/category/wall-street-markets/investing-wall-street-markets/stocks-investing/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2013/03/163135776-1.jpg?w=240</featured_image>
		<media:thumbnail url="http://timebusinessblog.files.wordpress.com/2013/03/163135776-1.jpg?w=240" />
		<media:content url="http://timebusinessblog.files.wordpress.com/2013/03/163135776-1.jpg?w=240" medium="image">
			<media:title type="html">Dow Jones Average Passes Its All Time High</media:title>
		</media:content>

		<media:content url="http://0.gravatar.com/avatar/9a5a9e4f28beb5afb59b1202632d219a?s=96&#38;d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">marthacwhite</media:title>
		</media:content>
	</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>
		<category><![CDATA[Finance]]></category>
		<category><![CDATA[Financial Reform]]></category>
		<category><![CDATA[Financial Regulation]]></category>
		<category><![CDATA[Government]]></category>
		<category><![CDATA[Home-Equity Loans]]></category>
		<category><![CDATA[Investing]]></category>
		<category><![CDATA[Jobs]]></category>
		<category><![CDATA[Markets]]></category>
		<category><![CDATA[Real Estate]]></category>
		<category><![CDATA[Real Estate & Homes]]></category>
		<category><![CDATA[Real Estate Markets]]></category>
		<category><![CDATA[Taxes]]></category>
		<category><![CDATA[Wall Street & Markets]]></category>
		<category><![CDATA[World Finance]]></category>

		<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>
		<wfw:commentRss>http://business.time.com/2013/02/12/why-cant-this-economy-get-going/feed/</wfw:commentRss>
		<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>
		<media:thumbnail url="http://timebusinessblog.files.wordpress.com/2013/02/rtr3dn1w.jpg?w=240" />
		<media:content url="http://timebusinessblog.files.wordpress.com/2013/02/rtr3dn1w.jpg?w=240" medium="image">
			<media:title type="html">Traders work on the floor of the New York Stock Exchange after the opening bell Feb. 11, 2013.</media:title>
		</media:content>

		<media:content url="http://2.gravatar.com/avatar/b8875a12f713f52ecc28fe72efed7fd4?s=96&#38;d=http%3A%2F%2F2.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">michaelsivy</media:title>
		</media:content>
	</item>
		<item>
		<title>Goodyear&#8217;s French Nightmare</title>
		<link>http://business.time.com/2013/02/01/goodyears-french-nightmare/</link>
		<comments>http://business.time.com/2013/02/01/goodyears-french-nightmare/#comments</comments>
		<pubDate>Fri, 01 Feb 2013 08:00:54 +0000</pubDate>
		<dc:creator>Peter Gumbel</dc:creator>
				<category><![CDATA[Agriculture]]></category>
		<category><![CDATA[Autos]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Europe]]></category>
		<category><![CDATA[CGT]]></category>
		<category><![CDATA[france]]></category>
		<category><![CDATA[Goodyear]]></category>
		<category><![CDATA[Hollande]]></category>
		<category><![CDATA[labor]]></category>
		<category><![CDATA[layoffs]]></category>
		<category><![CDATA[unions]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=69448</guid>
		<description><![CDATA[If you want to know what an unforgiving place France can be for doing business, especially in difficult economic times, ask Goodyear, the U.S. tire maker. Since 2007, it has been trying to reconfigure its plant in Amiens, in northern France, which makes low-end tires for passenger vehicles and farm equipment, and has been losing about $80 million per year. But every attempt to change working hours, or seek voluntary redundancies – including as part of a sale – has been met with fierce, and highly effective, resistance. One militant labor union at the plant has essentially managed to veto all management’s proposals, often over the objections of other, more moderate unions. On Thursday, the inevitable happened: Goodyear’s French management announced that it planned to shut down the plant altogether, with the loss of 1,173 jobs. “Closing the plant is the only possible option after five years of fruitless discussions,” Goodyear’s French director, Henry Dumortier, said in a statement. He didn’t rule out, however, that there might be a last-minute rescue by a third party. “Goodyear will remain open to initiatives that could be proposed, in the framework of the procedure started today.” (MAGAZINE: So Long, Farewell, Auf Wiedersehen. But Does the E.U. Really Want Britain to Leave?) Goodyear’s announcement isn’t the end of the story, and in fact, might be just the beginning of a new one. That’s because in France, where the unemployment rate has been rising for the past consecutive 19 months and now totals about 10.5% of the workforce, layoffs have become the top item on the political agenda, with the government of President François Hollande becoming increasingly involved in trying to block even private companies from cutting staff. Late last year, a succession of ministers attacked a decision by the steel maker Arcelor Mittal to lay off workers at a blast furnace in a case that dominated the headlines for weeks. This week, the Minister of Industrial Renewal, Arnault Montebourg, signaled that the Goodyear case was now a hot national political issue, saying he wanted “to<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=69448&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/02/01/goodyears-french-nightmare/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>Europe</primary_category><primary_category_link>http://business.time.com/category/economy-policy/europe-economy-policy/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2013/02/goodyear_france_0201.jpg?w=240</featured_image>
		<media:thumbnail url="http://timebusinessblog.files.wordpress.com/2013/02/goodyear_france_0201.jpg?w=240" />
		<media:content url="http://timebusinessblog.files.wordpress.com/2013/02/goodyear_france_0201.jpg?w=240" medium="image">
			<media:title type="html">Goodyear tyres factory</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>
		</media:content>
	</item>
		<item>
		<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>
		<wfw:commentRss>http://business.time.com/2013/01/23/are-todays-business-leaders-too-afraid-of-risk/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>Davos</primary_category><primary_category_link>http://business.time.com/category/davos/</primary_category_link>
		<media:content url="http://0.gravatar.com/avatar/fdeecd541de0fcb3fcde28c6675762e4?s=96&#38;d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">royaclare</media:title>
		</media:content>
	</item>
		<item>
		<title>6 Reasons the Stock Market Could Do Surprisingly Well in 2013</title>
		<link>http://business.time.com/2013/01/22/6-reasons-the-stock-market-could-do-surprisingly-well-in-2013/</link>
		<comments>http://business.time.com/2013/01/22/6-reasons-the-stock-market-could-do-surprisingly-well-in-2013/#comments</comments>
		<pubDate>Tue, 22 Jan 2013 14:00:37 +0000</pubDate>
		<dc:creator>Michael Sivy</dc:creator>
				<category><![CDATA[Austerity]]></category>
		<category><![CDATA[Bonds]]></category>
		<category><![CDATA[Economics & Policy]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Europe]]></category>
		<category><![CDATA[Federal Reserve]]></category>
		<category><![CDATA[Investing]]></category>
		<category><![CDATA[Jobs]]></category>
		<category><![CDATA[Labor]]></category>
		<category><![CDATA[Markets]]></category>
		<category><![CDATA[Personal Finance]]></category>
		<category><![CDATA[Portfolio Strategy]]></category>
		<category><![CDATA[Real Estate]]></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>
		<category><![CDATA[Wealth]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=67363</guid>
		<description><![CDATA[The S&#38;P 500 hit a five-year high last week, and now some experts are saying that stocks are overpriced and that the overall market is vulnerable to a 20% drop this year. There are certainly plenty of things to worry about, from a lousy economy and political gridlock in Washington to the possibility of a financial crisis in the euro zone. But there’s an equally compelling case that stocks could do quite well in 2013. Indeed, it wouldn’t be hard for the Dow to sail through its all-time high of 14,164 and go on to top 15,000 before the year is out – a gain of 10% or more from current levels. There’s no denying the economy’s current problems. Since the recession ended more than three years ago, growth has been consistently disappointing for a recovery. Moreover, the economy has actually been slowing down recently – from a 3.1% annualized growth rate in last year’s third quarter to less than 1.5% in the fourth quarter. In addition, analysts project that the fiscal cliff deal, combined with attempts to cut the deficit, will knock as much as a full percentage point off GDP growth in 2013. In short, this year’s economy figures to be just as sluggish as last year’s – and maybe worse. But the pessimists’ case for a bear market is based on more than a limping U.S. economy. They think the bull market – up more than 100% over the past three-and-a-half years – has run its course. They expect a global slowdown that will cause 2013 corporate profits to fall short of expectations. Finally, they think the Federal Reserve’s extreme easy-money policies will either lead to inflation, or that the Fed will have to raise interest rates. Either way, it would send the prices of Treasury bonds into a tailspin and unsettle the stock market as well. Whew! That’s a lot to worry about. But today’s bearish commentators are making one crucial incorrect assumption – that share prices move in lockstep with the economy. It’s true that over the long term, share prices follow<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=67363&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/01/22/6-reasons-the-stock-market-could-do-surprisingly-well-in-2013/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>Markets</primary_category><primary_category_link>http://business.time.com/category/wall-street-markets/investing-wall-street-markets/markets/</primary_category_link>
		<media:content url="http://2.gravatar.com/avatar/b8875a12f713f52ecc28fe72efed7fd4?s=96&#38;d=http%3A%2F%2F2.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">michaelsivy</media:title>
		</media:content>
	</item>
		<item>
		<title>What the Current Economic Outlook Means for American Families</title>
		<link>http://business.time.com/2013/01/16/what-the-current-economic-outlook-means-for-american-families/</link>
		<comments>http://business.time.com/2013/01/16/what-the-current-economic-outlook-means-for-american-families/#comments</comments>
		<pubDate>Wed, 16 Jan 2013 13:00:01 +0000</pubDate>
		<dc:creator>Michael Sivy</dc:creator>
				<category><![CDATA[Austerity]]></category>
		<category><![CDATA[Credit Cards]]></category>
		<category><![CDATA[Economics & Policy]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Europe]]></category>
		<category><![CDATA[Investing]]></category>
		<category><![CDATA[Jobs]]></category>
		<category><![CDATA[Mutual Funds]]></category>
		<category><![CDATA[Personal Finance]]></category>
		<category><![CDATA[Planning]]></category>
		<category><![CDATA[Portfolio Strategy]]></category>
		<category><![CDATA[Real Estate]]></category>
		<category><![CDATA[Real Estate & Homes]]></category>
		<category><![CDATA[Real Estate Markets]]></category>
		<category><![CDATA[Retirement]]></category>
		<category><![CDATA[Stocks]]></category>
		<category><![CDATA[Tax Policy]]></category>
		<category><![CDATA[Taxes]]></category>
		<category><![CDATA[The Economy]]></category>
		<category><![CDATA[Wall Street & Markets]]></category>
		<category><![CDATA[Wealth]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=66788</guid>
		<description><![CDATA[Now that the fiscal cliff fight is over and the debt ceiling debate hasn&#8217;t reached a fever pitch &#8212; not yet, anyway &#8212; it seems like a good time to take a step back, assess the economic outlook, and see what it means for American families. The good news is that the U.S. has enjoyed more than three years of uninterrupted economic growth and falling unemployment since the recession ended. The bad news is that this has been the weakest rebound since World War II. Economic growth has averaged less than 2.25% since the recovery began and is estimated to have slowed to less than 1% in the most recent quarter. Unemployment is still way above where it should be at this point. Budget problems remain the chief impediment to faster growth. The fiscal cliff deal did little to reduce the annual deficit, almost $1.1 trillion last year. Not all of that amount needs to be eliminated, though. Part of the current deficit is simply the normal result of a weak economy. Moreover, if the economy were growing at its historical average rate of 3.25% a year, the U.S. could afford to run a deficit of half a trillion dollars or so. Even so, the deficit still needs to be reduced by something like $300 billion a year. That means further spending cuts and tax hikes that will be a drag on the economy. Consensus estimates are for slightly slower growth this year – an estimated 1.8%, down from 2.2% in 2012. The most optimistic economists foresee a small improvement in growth this year, followed by 3% or more in 2014. While that would get the economy back to its long-term average growth rate, it would remain far short of the powerful rebound that normally follows a recession. (MORE: The Changing Business of Drugstores) To see what this outlook is likely to mean for typical American families, it helps to take a closer look at these factors: Unemployment. For the past three years, unemployment has been coming down slowly but steadily. The most recent report calculated that 155,000 jobs<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=66788&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/01/16/what-the-current-economic-outlook-means-for-american-families/feed/</wfw:commentRss>
		<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>
		<media:content url="http://2.gravatar.com/avatar/b8875a12f713f52ecc28fe72efed7fd4?s=96&#38;d=http%3A%2F%2F2.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">michaelsivy</media:title>
		</media:content>
	</item>
		<item>
		<title>Too European To Fail? New E.U. Banking Safety Net Takes Shape</title>
		<link>http://business.time.com/2012/12/17/too-european-to-fail-new-eu-banking-safety-net-takes-shape/</link>
		<comments>http://business.time.com/2012/12/17/too-european-to-fail-new-eu-banking-safety-net-takes-shape/#comments</comments>
		<pubDate>Mon, 17 Dec 2012 08:00:29 +0000</pubDate>
		<dc:creator>Peter Gumbel</dc:creator>
				<category><![CDATA[Banking]]></category>
		<category><![CDATA[Europe]]></category>
		<category><![CDATA[Angela Merkel]]></category>
		<category><![CDATA[European Central Bank]]></category>
		<category><![CDATA[European Union]]></category>
		<category><![CDATA[eurozone]]></category>
		<category><![CDATA[Mario Draghi]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=64390</guid>
		<description><![CDATA[The agreement by E.U. leaders to establish a pan-European supervisory system for banks is an important political breakthrough in the drive to shore up the euro-zone’s financial stability, and by European standards it was reached relatively quickly &#8212; just seven months after the idea was first put on the table. Starting in March 2014, the European Central Bank will begin directly supervising all banks in the euro-zone with assets above 30 billion euros ($40 billion), which in practice means about 80% of them. The aim is to provide a far more rigorous oversight for the European banking system than the patchwork of national regulators who are at times prone to domestic political influence. Indeed, the financial crisis in 2007 has exposed the extent to which banking regulation is highly politicized in countries including Spain, where the woes of a handful of savings and loans have plunged the entire nation into crisis and led to the ouster of the head of the central bank. But, as so often in the E.U., it took laborious compromise to arrive at a deal. That means the supervision will not cover a swathe of smaller banks within the 17-nation eurozone, including Germany&#8217;s &#8220;Sparkassen&#8221;, which are regional savings and loans institutions that have been particularly weak. (The IMF took a useful look at German banking here). Countries that don’t participate in the euro have the choice of whether they want their banks to be covered by the new supervision; so far, Britain and Sweden have declined the offer. That could pose significant problems to the workings of the new system, given the size of British banks and London’s role as the euro’s most important financial center. (MORE: Europe’s Crisis Measures Are Working…Sort Of) The British will continue to have an important influence on banking regulation issues through a European banking authority in which it has a major voice, and which is expected to work closely with the new supervisory mechanism. As it is, Europe’s weakly capitalized banks are a central preoccupation for many economists and policy makers:<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=64390&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2012/12/17/too-european-to-fail-new-eu-banking-safety-net-takes-shape/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><featured_image>http://timebusinessblog.files.wordpress.com/2012/12/ecb_1217.jpg?w=240</featured_image>
		<media:thumbnail url="http://timebusinessblog.files.wordpress.com/2012/12/ecb_1217.jpg?w=240" />
		<media:content url="http://timebusinessblog.files.wordpress.com/2012/12/ecb_1217.jpg?w=240" medium="image">
			<media:title type="html">ecb_1217</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>
		</media:content>
	</item>
		<item>
		<title>What Mario Monti’s Exit Tells Us About Europe’s Debt Crisis</title>
		<link>http://business.time.com/2012/12/12/what-mario-montis-exit-tells-us-about-europes-debt-crisis/</link>
		<comments>http://business.time.com/2012/12/12/what-mario-montis-exit-tells-us-about-europes-debt-crisis/#comments</comments>
		<pubDate>Wed, 12 Dec 2012 06:26:37 +0000</pubDate>
		<dc:creator>Michael Schuman</dc:creator>
				<category><![CDATA[Europe]]></category>
		<category><![CDATA[Debt Crisis]]></category>
		<category><![CDATA[euro zone]]></category>
		<category><![CDATA[Italy]]></category>
		<category><![CDATA[Mario Monti]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=63972</guid>
		<description><![CDATA[So much for a quiet Christmas in the euro zone. The European debt crisis has been off boil for the past several months, but we all knew it was just a matter of time before the steam started rising again. The question was: What would turn up the heat? I would have put my money on Spain stumbling into a bailout program, but instead the spark has come from one of the key figures in the euro zone: Italian Prime Minister Mario Monti. The respected economist surprised financial markets on Saturday when he announced he would step down early, after the latest budget passed through Parliament. Italy watchers had assumed he would stay on until fresh elections took place in the spring, but now that poll will likely take place earlier in 2013. Immediately, the debt crisis sprung to life. Yields on Italian 10-year bonds jumped on the news. They are still well below the more dangerous levels reached over the summer, but the negative reaction from investors to Monti’s decision tells us quite a bit about the course of Europe’s debt crisis. (VIDEO: Interview with Italian Prime Minister Mario Monti) Investor concerns make perfect sense. Monti, a former E.U. commissioner, has been one of the most important individuals in Europe’s quest to resolve its debt crisis. In his year in office, Monti managed to pull Italy back from the brink of an ugly tumble, possibly into a bailout or default. He was ushered in a year ago by political parties who realized they needed a technocratic outsider, with limited political interests, to push through the reforms necessary to avert disaster. He quickly lived up to expectations, short-circuiting the usually fractious political process to ram though an austerity budget and a liberalization of Italy’s professions. After months of heated debate, he also managed to get a reform of Italy’s convoluted labor laws enacted, which aims to encourage hiring and ease restrictions on downsizing. Monti was also a loud voice for the struggling economies of the euro zone in summits with<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=63972&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2012/12/12/what-mario-montis-exit-tells-us-about-europes-debt-crisis/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>Europe</primary_category><primary_category_link>http://business.time.com/category/economy-policy/europe-economy-policy/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/12/par409996.jpg?w=240</featured_image>
		<media:thumbnail url="http://timebusinessblog.files.wordpress.com/2012/12/par409996.jpg?w=240" />
		<media:content url="http://timebusinessblog.files.wordpress.com/2012/12/par409996.jpg?w=240" medium="image">
			<media:title type="html">image: Mario Monti at Palazzo Chigi in Rome, Feb of 2012.</media:title>
		</media:content>

		<media:content url="http://1.gravatar.com/avatar/16f24a6058e54145f5ee65b322784b28?s=96&#38;d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">michaeljschuman</media:title>
		</media:content>
	</item>
	</channel>
</rss>
