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MICHAEL Jordan poses with the new Air Jordan XX3 basketball shoe. The Air Jordan XX3 will be released in three hyped-up rounds from January to February, starting with a limited edition to be sent to only 23 retailers to be sold for $230 and concluding with the national launch at $185. Photograph: Nike .
Savings and loan crisis cost taxpayers too much
Economic bubbles that burst get government bailouts. That's historically the way it's worked. The need to stabilize the farm banking system was given as the reason for the mid-80's farm aid. The savings and loan crisis cost taxpayers far more than deposit insurance could cover. Today, it's the Adjustable Rate Home Mortgage bubble that has burst and the Bush administration is attempting to cushion the blow with a plan to help borrowers refinance. 1.8 million ARMs reset to higher rates this year. The Bush administration worries that as many as 1.2 million of these are at risk of foreclosure without help. As was the case with the 1980's farm crisis, the government's plan doesn't bail out banks directly. The mortgage industry will lose $150-400 billion as a result of subprime mortgage losses.
Northern Rock one step nearer nationalisation
The government is believed to have lined up Ron Sandler, a close associate of the Prime Minister, to head Northern Rock if the bank is nationalised, writes James Robinson. Sandler, a former head of Lloyd's, has been approached by Treasury officials about running the bank, as part of a plan to put the company under state control if two rival bids for the business fail. Two potential buyers, a consortium lead by Richard Branson's Virgin Money and Olivant, headed by former Abbey National boss Luqman Arnold, are both struggling to raise the estimated £15bn needed. Sandler was commissioned by Gordon Brown, as Chancellor, to review the financial services industry. He recommended a series of changes to encourage more saving for retirement. Nationalisation now appears the most likely option.
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