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The ill-conceived merger of Time Warner with America Online in 2001 was one of the worst deals in business history, which weighted down the stocks of the media giant. A new management team led by CEO Richard Parsons is aiming for a powerful revival through paring the debt and achieving peace amongst its warring business units. The earnings in first half of 2004 exceeded the expectations of the company and its shareholders.

IDT enjoyed a $2 rise to a $17.35 52-week high last week, thanks to favorable market evaluation of its WinStar acquisition from bankruptcy that cost only $102 million, while avoiding responsibility for WinStar's $5 billion debt. Spiegel's catalog troubles are also analyzed.

The swift rise and dramatic collapse of energy-trading firm Enron is viewed as emblematic of U.S. markets, with emphasis given to greed and mismanagement. The Federal Reserve's failure to nudge the U.S. economy out of its slowdown with capital infusions and interest-rate cuts is discussed. AOL Time Warner will have to acquire Bertelsmann's share of its flailing AOL Europe division for close to three times its worth.