(FORTUNE Magazine) – MANAGING/COVER STORY 36 THE NEW EXECUTIVE UNEMPLOYED Cost cutting, downsizing, restructuring -- it all boils down to shrinking payrolls, and it has reached the executive ranks with a vengeance. Even top- flight managers are vulnerable to the budget ax. To some, the loss of a job is devastating. To others, it's the beginning of a more fulfilling life. by David Kirkpatrick

46 WHAT TO DO IF THE AX FALLS ON YOU

AUTOS 50 CAN IACOCCA FIX CHRYSLER -- AGAIN? His cutbacks are all that stand between the automaker and the junkyard. With cash running low, he has chopped nearly $3 billion in annual costs. He's betting he can hold Chrysler together until next year's models hit the streets. by Alex Taylor III

52 AN INTERVIEW WITH IACOCCA: ''YOU GOTTA ASSUME THE WORST''

POLITICS & POLICY 56 ALAN GREENSPAN'S STRATEGY NOW Like the U.S. generals who liberated Kuwait, the Fed chairman is focused on an overriding goal -- driving inflation into the ground. If he sticks to his guns, he just might pull it off. by Rob Norton

TECHNOLOGY 60 THE U.S. WINS ONE IN HIGH-TECH TV The American television system, the world's first, has been the worst in picture sharpness of the three worldwide standards. But by 1995 the U.S. may end up with the best system -- and one invented by an American company. Will HDTV revive the consumer electronics industry at home? Alas, no. by Andrew Kupfer

MONEY & MARKETS 67 BANK REFORM WON'T SAVE THE BANKS Congress is ambivalent about the Treasury plan, and the Brady proposals do not solve the industry's biggest problems: not enough money and not enough management. by Gary Hector

INNOVATION 70 PRODUCTS TO WATCH Cholesterol-free Dunkin' Donuts, audiocassette guides to doing business in other cultures, new breeds of the computer mouse for your laptop, and more. by Stephanie Losee

THE SOVIET UNION 72 MOTHER RUSSIA'S FREEDOM FIGHTER The Russian Republic's Boris Yeltsin has forced a showdown with Mikhail Gorbachev. Whether the outcome is crackdown or compromise, it will redefine the Soviet Union. by Paul Hofheinz

CORPORATE PERFORMANCE 76 STATE FARM IS OFF THE CHARTS Stunningly rich but less famous than it should be, the giant insurer has built a remarkable record with a stick-to-your-knitting, down-home management philosophy. by Carol J. Loomis

82 COMPANIES TO WATCH Aggressive distributor Premier Industrial delivers the goods when it comes to tough-to-find electronic and industrial parts. by Ret Autry

Also: CSS Industries, Environmental Elements, and Sensormatic Electronics.

TRADE 84 HOW LATIN AMERICA IS OPENING UP Opportunities abound for U.S. business as governments cut tariffs, welcome foreign companies, and unshackle their economies. Free trade could ignite a burst of growth. by Jeremy Main

DEPARTMENTS 4 EDITOR'S DESK 8 INDEX 12 NEWS/TRENDS GE as CEO boot camp, endangered dividends, Honda's high road, air fare wars, the gold rush to Kuwait, retired generals as directors, and more.

23 FORECAST The battle against inflation is taking its toll on world growth. But don't worry: The slowdown won't snowball. by Brian O'Reilly

27 PERSONAL INVESTING How to play the bull market. by John J. Curran

Also: A high-tech stock the big boys like, ten tax tips to keep you wealthy and wise, and Portfolio Talk with Anthony Brown of the Pax World Fund.

91 FORTUNE PEOPLE Kuwait's planeless airline chief, an old upstart's new startup, Toys ''R'' Us alumni make a play for Child World, and more. by Mark M. Colodny

92 ON THE RISE

105 OFFICE HOURS No white space on your desk calendar? Weekends booked rock solid too? Maybe it's time to ask yourself a few questions. by Walter Kiechel III

108 LETTERS

127 KEEPING UP Nuking environmentalists and other ways of being socially responsible, notes from underground, the U.S. vs. New York (or how to get rid of rent control), and other matters. by Daniel Seligman

ABOVE: Losing his job gave Keith Reed more time for his children. Photograph by Lynn Johnson (Black Star).

COVER: Johnson also took this shot of Humes, forced out after Squibb merged with Bristol-Myers.