(FORTUNE Magazine) – MANAGING/COVER STORIES 38 CAN YOUR CAREER HURT YOUR KIDS? Even in two-parent families, Mom often gets home from work too tired to talk, and Dad's almost never around. Says one expert of children left in the care of others: ''We can only guess at the damage being done to the very young.'' by Kenneth Labich

60 PIONEERS OF THE NEW BALANCE More managers are striking deals for flexible work schedules. They have more time for their kids, and -- surprise -- their careers are prospering. by Alan Deutschman

COMPETITION 71 MELTING POINT IN THE PLASTIC WAR Everyone from GM to the local phone company wants a chunk of the credit card business. The real winners will be consumers. by Bill Saporito

76 WHAT CORPORATE CARDS OFFER EMPLOYER AND EMPLOYEE

TROUBLE 83 EMPLOYEES LEFT HOLDING THE BAG The deals looked grand when companies decided to sell out to their workers. But many employees lost their equity, jobs, pensions, and more. Now they're suing. by Anne B. Fisher

92 THE MAGICIAN'S LAST TRICK

THE ENVIRONMENT 95 THE BIG CLEANUP GETS IT WRONG The emerging science of risk assessment says that the U.S. is spending way too much on minor threats, like asbestos, and not enough on major pollutants, like radon. by Jeremy Main

THE SOVIET UNION 103 SHEVARDNADZE SPEAKS OUT He was with Gorbachev at the creation. Now he talks to Fortune about their mistakes and why Western investors should not give up.

MONEY & MARKETS 110 WHO GOT KILLED BY EXECUTIVE LIFE? Hundreds who thought they were investing in safe, conservative municipal bonds. by Terence P. Pare

TECHNOLOGY 113 THE PC YOU PUT IN YOUR POCKET Need to take Lotus 1-2-3 on the road? It's built into Hewlett-Packard's powerful new palmtop, as are other serious tools. This little thing could be the start of something big. by Alan Farnham

CORPORATE PERFORMANCE 116 COMPANIES TO WATCH

POLITICS & POLICY 119 THE DEMOCRATS' DESPERATE SEARCH Yes, they need a strong candidate. But to win back the White House, the Democrats must also find a message that can recapture the hearts and minds of the middle class. by Ann Reilly Dowd

BANKING 123 COOLING DOWN THE WORLD DEBT BOMB At last, here's something to worry less about. Third World debts are still a threat to some banks, but the problem for the global financial system is receding. by Brian O'Reilly

INNOVATION 126 PRODUCTS TO WATCH

THE MIDDLE EAST 129

THE BEST CASE FOR MIDEAST PEACE Forget politics. If the two sides could only get together, the economic benefits for both would be huge. Let my people grow -- and grow and grow and grow. by Shawn Tully

DEPARTMENTS 4 EDITOR'S DESK 8 INDEX 12 NEWS/TRENDS Your role in the bull market, Trump trumped by the banks, what it costs to sell wheels on TV, the road ahead for U.S. railroads, and more.

21 FORTUNE FORECAST Our semiannual survey of the business mood renders a wary vote for recovery. by Todd May Jr.

25 PERSONAL INVESTING How to win by being average: index funds based on small and foreign stocks. by Andrew Evan Serwer

Also: Hidden allure of Alberto-Culver, short-term global bond funds, and Portfolio Talk with Peter Nadosy of Morgan Stanley Asset Management.

135 FORTUNE PEOPLE Whether Frank Lorenzo will take to the skies again, a missionary in Moscow, two guys from Crete, and more. by Mark M. Colodny

136 ON THE RISE

151 BOOKS & IDEAS In The Litigation Explosion, an outraged critic launches a passionate and eloquent assault on the U.S. legal system. Too bad his case isn't better documented. by Walter Guzzardi

153 LETTERS TO FORTUNE

155 KEEPING UP New hope for the Klan, a case for putting on weight, onward and downward with diversity, and other matters. by Daniel Seligman

ABOVE/COVER: George Lange photographed these preschoolers in Framingham, Massachusetts, at a Bright Horizon Children's Center, known for the innovative on-site day care it provides such major corporations as Dun & Bradstreet.