"If you're going to panic, do it fast and beat the crowd." ~ Jesse Livermore

Sunday, July 31, 2011

Pressure on Spain as IMF seeks action on weak finances

Pressure on Spain as IMF seeks action on weak finances
Irish Times
The focus on Spain comes as pressure on Italy persists, even after euro zone leaders sought to contain the spread of contagion from the debt crisis by expanding the remit of their bailout fund. A deepening political crisis in Cyprus has also raised new ...
This Week on GPS: IMF chief Christine Lagarde and GM CEO Dan Ackerson
CNN (blog)
Fareed Zakaria: What would you do if there were a default, now, six months from now, a year from now? Dan Ackerson: Well, as you know, US treasuries are the "gold standard". If we default, the cost of treasures will go up and all others - whether they ...
CORRECT: IMF Staff See Need For $350 Bln-$400 Bln More In Fund Resources
Wall Street Journal
(A report: "IMF Staff See Need For $350 Bln-$400 Bln More In Fund Resources," published at 5:07 pm EDT, erroneously described IMF reserve assets as "lending resources" throughout. A corrected version--with no-longer-needed explanatory passages ...
Despite disadvantages, IMF predicts more growth for Rwandan economy
Independent.co.ug
What is the role of IMF in Rwanda? Right now we don't provide any financial assistance to Rwanda [because] by our own charter we are not supposed to provide budget support…We only provide bounds of payment support. [We will provide support if a ...
Dollar Suffers Another Selloff
Wall Street Journal
By JAVIER E. DAVID NEW YORK—Weak US data and anxiety over a looming deadline to avert afiscal crisis hit the dollar, pushing it to a new record low against the Swiss franc as investors doubted the world's largest economy would escape a potentially ...
Bunds Soar on Safety Bid; Italian, Spanish, Greek Bonds Slump
Bloomberg
Italian 10-year securities slumped for a third week in four, as the nation's borrowing costs rose at a bond sale, spurring concern that debt-crisis contagion is infecting the larger euro-area nations. Spanish debt fell as traders questioned the clarity ...
IMF chief worried over protracted debt cap fight
gulfnews.com
On Thursday Lagarde said in an interview with US television network PBS that failure to resolve the US debt crisis would likely raise doubts about the dollar's status as the world's prime reserve currency.
Greek bailout Mark II – it's a default
Malaysia Star
Of the 109 billion euros from the new bailout (together with the IMF), 35 billion euros will be used to buy collateral to serve as insurance against the new bonds in exchange, while 20 billion euros will go to buy Greek debt at a discount in the ...
What eurozone leaders are doing about the debt crisis
The Guardian
Finally, it is imperative to bear in mind that this is not a crisis about the euro. In the aftermath of the financial crisis of 2008, all developed countries are faced with increased public debt. Given the interdependence of these economies, ...
One Chart To Explain the Entire Financial Crisis
Benzinga
At a recent post at the SayAnythingBlog, Donny Baseball writes that if you had to look at just one chart to understand the entire financial crisis, it would be the chart above. Here's some additional commentary: "3%! Simply amazing. ...
US debt crisis: Obama's warning as FTSE tumbles amid global recession fears
Daily Mail
By Anna Edwards European markets plummeted yesterday as the ongoing US debt crisis threatened to reignite another global financial crisis. America is teetering on the brink of default, as the Republican-led House of Representatives and the Senate ...
Default looms as US politicians fail to reach deal
thejournal.ie
An 11 th hour solution is the only way that America can now avoid such a calamitous default, which could have the potential to spark another global financial crisis. Last night, the Democrat-led Senate quashed a Republican bill that had been squeezed ...
FF accuses Government of breaking election promises
Irish Examiner
Michael McGrath's comments come following the publication of a document from the EU/IMF, detailing the budgetary targets that need to be met by the end of the year. It outlines how €3.6bn worth of savings can be made through social welfare cuts and tax ...
America's Fiscal Crisis and the Untold Story of the Impact on Vulnerable ...
Sacramento Bee
By Joint Center for Political and Economic Studies WASHINGTON, July 29, 2011 /PRNewswire-USNewswire/ -- The Joint Center for Political and Economic Studies has scheduled a webinar Monday, August 1, 2011 to focus on the challenges facing African ...
Why any debt-ceiling deal will squeeze the states
Washington Post (blog)
If the country defaults, the states will be plunged into an immediate financial crisis: Investor confidence in government assets across the board would plummet — including the municipal bonds that states and local governments have traditionally relied ...
US debt ceiling crisis: Treasury is ready for the worst
This is Money
Such a crisis is still seen as unlikely as politicians are expected to reach a last-ditch compromise rather than risk catastrophe, but after the recent financial crisis officials are preparing for the worst. The Treasury declined to comment on any ...
What the US debt ceiling debate means to a Filipino immigrant
Inquirer.net
With a financial crisis threatening millions of Americans, what does this actually mean to an ordinary Filipino immigrant? Jason entered the United States as a registered nurse in 2004. He was able to petition his wife to join him and all their three ...
Do we blame civil servants for resisting PAY cuts?
Times of Swaziland
The secrecy with which things were done, including concealing the recommendations of the International Monetary Fund (IMF), one would have sworn this would not affect anyone. And with reactions from ordinary Swazis, and worst still from some of our ...
Five Best Saturday Columns
The Atlantic Wire
"Many are asking whether a downgrade could itself lead to a financial crisis," observes Neel Kashkari. "With the example of 2008 still fresh in many minds, the question has become: Would it be as bad as the Lehman Bros. bankruptcy? ...
Weekly Bullion Wrap Up: Gold Heats Up, Prices Record Fresh Highs Above $1600
India Infoline.com
The head of the International Monetary Fund (IMF) has stated that the US dollar may decline in value as financial markets lose confidence that the US Government will pay its bills, if Congressional lawmakers fail to reach an agreement on the debt ...
Galvan's Week-Ahead: US Debt Default Brinkmanship Weighs On The FTSE100
Proactive Investors UK
But at least Next has weathered the period since the financial crisis began in an impressive manner, and it would be surprising if there was any deviation from this path despite the VAT rise and rising commodities prices Monday – UK July Manufacturing ...
The threat to health from cheap brothels
Sydney Morning Herald
To kick-start business after the global financial crisis and meet a surge in client demand, Sydney brothels staffed exclusively by Asians now offer oral sex without a condom as a standard service. NSW Health confirms rates of sexually transmitted ...
As Predicted, a European IMF Director Complicates Crucial Decisions
The American (blog)
By Claude Barfield In a blog post in early June, I argued that, despite her accomplishments and personal ability, the choice of Christine Lagarde to head the IMF would complicate and undercut IMFdecision making when it came to crucial and difficult ...
Business Update - economy is gradually recovering
SKNVibes.com
BASSETERRE St. Kitts – The International Monetary Fund (IMF), yesterday (July 28) said that the St. Kitts and Nevis economy is gradually recovering from a prolonged recession but fiscal imbalances and structural fragilities pose significant risks to ...
For Investors, Cash Is King
Wall Street Journal
The movement of money, akin to that during the peak of the 2008 financial crisis, is one more sign that skittishness is on the rise as officials in Washington remain deeply divided about ways to reduce the deficit and lift the debt ceiling ahead of the ...
Their View: Tea Party intransigence: How it works, what it means
Silver City Sun News
By Michael L. Hays / For the Sun-News The looming financial crisis from a failure to raise the debt ceiling is changing opinions of the Tea Party. Once approved as a vent for anger, it is now disapproved for its intransigence, which not only threatens ...
Investors head to safety as US default nears
AFP
Worried savers and investors sucked cash out of money market funds, mindful that some of the vehicles, normally seen as foolproof, turned out to be losers in the 2007-2008 financial crisis. But, according to the Investment Company Institute, ...
Default Scenarios Include Questions About Fate Of Medicare, Medicaid ...
Kaiser Health News
There's no precedent for this kind of fiscal crisis, although Medicare providers have experienced short-term delays in the past" (Rau, Weaver and Marcy, 7/29). CNN Money: "[Some physician groups] have started to warn their members that a possible ...
Poverty grew in Mexico to nearly half the population, study finds
Los Angeles Times
The government of President Felipe Calderon blames the poverty numbers on the global financial crisis that sent Mexico into recession in 2009 and the worldwide hike in food prices. By Tracy Wilkinson, Los Angeles Times Mexico received more bad economic ...
Money Market Funds and US Default - 4 Reasons Not To Worry
CBS MoneyWatch.com (blog)
Last, the Securities and Exchange Commission revamped the regulations on money market funds in 2010, implementing lessons learned in the financial crisis. Funds are required to invest in higher quality assets with shorter maturities. ...
Dow Slides 4.24% in Worst Week in a Year
Barron's
America may have no other choice than to run on Dunkin' if Washington fails to avert a looming fiscal crisis by the Aug. 2 deadline to lift the debt ceiling and agree on spending cuts. Although House Speaker John Boehner pushed a bill through the lower ...
What's With All the Bernanke Bashing?
New York Times
Mr. Bernanke has worked tirelessly to shepherd the economy through the worstfinancial crisis since the Great Depression, and yet, for all his efforts, seems vastly underappreciated. CNBC recently asked people, “Do you have confidence in the way Ben ...
Marc Beauchamp: Home underwater? Who's to blame?
Record-Searchlight
Last weekend I watched "Inside Job," a recent documentary about the housing bust and the globalfinancial crisis that it triggered in 2008 and that we're still suffering from. It's beautiful to look at. Filmmaker Charles Ferguson has an almost ...
Editorial Notebook: Looming default is a millennial's nightmare
Sacramento Bee
The prospect of default, which at this point is quite real, is terrifying enough. The resulting global financial crisis would disastrously affect people who are in no way responsible for it, or whose only crime was their trust in US financial and ...
MONEY WEEK AHEAD: Win-Win For Treasurys Amid US Debt Showdown
Wall Street Journal
But analysts say investors know that the overall debt problems aren't about the nation's ability to make payments--rather, it is about the government's political posturing in the face of a fiscal crisis--theatrics that have been seen before, ...
If you think the debt crisis is bad now ...
msnbc.com
If it hadn't been for two wars, the tax cuts of 2001 and 2003, the housing meltdown, and the subsequent financial crisis and recession, the nation's finances would be in fine condition today. And the only obstacle to getting there again, this narrative ...
Bitter mood prevails as US lawmakers struggle to compromise on debt deal
Globe and Mail
Analysts believe it will stop other government spending to ensure bondholders are paid to avert a wide-scale financial crisis. The drawn-out standoff has put the United States at risk of losing its top-notch AAA credit rating. A ratings downgrade could ...
CBOE adds to 'tail hedge' gauge to 'fear' index
MarketWatch
"Tail risk" is the term investors sometimes use for the possibility that markets could stage a big plunge like the one seen during the financial crisis in 2008. The measure, called the CBOE VIX Tail Hedge Index, is intended to "help investors control ...
Debt-Ceiling Standoff Weighs On US Commercial Paper Market
Wall Street Journal
Having exited the financial crisis in strong shape and stockpiled record levels of cash, corporate commercial paper is more in demand than bank paper--despite Senate Majority Leader Harry Reid (D., Nev.) saying Friday that companies were running into ...

Saturday, July 30, 2011

Toothless CDS blamed for failing to stop sovereign contagion

Toothless CDS blamed for failing to stop sovereign contagion
Reuters
By Helene Durand LONDON, July 29 (IFR) - Fears that credit default swaps would not provide protection against a sovereign default as previously hoped could be one of the reasons behind some of the recent sell-off in Eurozone peripheral sovereign cash ...
Could a U.S. debt downgrade trigger a financial crisis?
Washington Post
By Neel Kashkari, As we approach Treasury's debt-ceiling deadline, attention has shifted from the risks of a default on Treasury debt to the risk of a downgrade of US credit. Many are asking whether a downgrade could itself lead to a financial crisis...
Moody's Sees Contagion Risks, Puts Spain Under Review
Wall Street Journal
By David Roman and Natasha Brereton-Fukui MADRID (Dow Jones)--Moody's Investors Service Friday put Spain's Aa2 ratings on review for possible downgrade, saying the euro zone's fourth-largest economy faces rising contagion risks as the area's debt ...
IMF Sees Spain in 'Danger Zone' as European Debt Crisis Persists
Bloomberg
“Downside risks dominate” the outlook for economic growth in the near term because of rising concerns about sovereign risks in the euro area, according to the report. The IMF said Spanish banks that need capital should raise it “promptly from the ...
IMF Chief Warns America on “Exorbitant Privilege”
FXstreet.com
New IMF Chief Christine Lagarde has warned overnight that the global reserve currency status of the dollar is at risk due to the “worrisome” US debt debate. Failure by the United States to raise the debt ceiling would likely lead to a decline in the US ...
Greece to get September bailout from bilateral loans
Reuters
Euro zone leaders called last week for the next tranche of aid for Greece, which is composed of 5.8 billion euros from the euro zone and 2.2 billion euros from the IMF, to be handled through the bailout fund, the European Financial Stability Facility ...
IMF Board Holds Informal Board Meeting On EU's Greek Financing Deal
Wall Street Journal
Several members of the board, particularly from emerging markets, are concerned that the IMF is overexposing itself to the euro-zone debt crisis. Also, some members have said that even with the new financing deal that promises another EUR100 billion to ...
EU Morning Report- Euro slips on heightened eurozone debt contagion fears
Easy-Forex
The euro shed 1% against the dollar dropping to as low as 1.4254 from 1.4400. Investors are still worried about a eurozone debt contagion and worries intensified after an Italian debt auction, which resulted in the highest borrowing costs in eleven ...
IMF chief warns on dollar decline if no debt deal
Reuters
2 deadline could lead to a fall in the value of the dollar and raise "doubts" among those using it as a reserve currency, the head of the IMF said on Thursday. "It would probably entail a decline of thedollar relative to other currencies, and probably ...
Global view
WatertownDailyTimes.com
The International Monetary Fund has made strong statements on how a US government defaultwould affect the global economy. In its annual analysis of the US economy on Monday, the IMFstressed that if investors lose faith in US debt, the impact on the ...
China may help fund Greek bond buybacks-finmin source
Reuters
The official did not elaborate but referred to a meeting Greek Finance Minister Evangelos Venizelos had with China's IMF representative in Washington earlier this week. The Chinese government faces domestic political pressure to invest the country's ...
Mobius: US Dollar, Treasurys No Longer Safe Havens
CNBC.com
The US dollar and Treasurys, which proved to be safe havens during the globalfinancial crisis, can no longer be viewed as such because of the on-going debt impasse, renowned investor Mark Mobius told CNBC on Friday. Instead, Mobius, who oversees about ...
Gold Faces Short-Term Price Trap
Business Insider
By next Tuesday, Congress will likely reach some sort of pallid agreement that will involve a short-term agreement to raise the debt ceiling just enough to postpone an imminent fiscal crisis until after the 2012 election. This will, of course, ...
Agencies cut Greek, Cyprus credit ratings
Southeast European Times
The plan approved last week again includes loans from the EU countries using the euro as their national currency and the IMF, which will be made available to Athens under relieved terms. The deal was reached after private financial institutions agreed ...
Veolia: Dividend Growth Opportunity Could Be Created by Euro Weakness
Seeking Alpha
The sovereign debt crisis with the PIIGS has caused European stocks plenty of stress over the past few months. However, the mess in Europe has created some high yield opportunities with growth upside. One of these is utility/waste management company ...
Safe havens? Gold, the yen and peanut butter
CNNMoney
So it often does well when the dollar is in the dumps. Ditto for the Swiss franc, which has all the benefits of being part of the developed European world without those nasty side effects of that whole EU exposure to the PIIGS thing. The dollar fell to ...
World Bank head: US playing with fire on debt limit
Reuters
World Bank President Robert Zoellick speaks at a news conference during the spring International Monetary Fund (IMF)-World Bank meetings in Washington April 16, 2011. WASHINGTON (Reuters) - The United States is courting calamity with the continuing...
Bill will protect whistleblowers and double fines for financial institutions
Irish Times
Minister for Finance Michael Noonan said the Central Bank (Supervision and Enforcement) Bill 2011 was a response to the regulatory failures of the financial crisis and would draw on the lessons of the recent past in Ireland and abroad. ...
Eyes of world on US as debt deadlock threatens default
Storyful
It is feared that failure to reach an agreement by August 2 could trigger another financial crisis, and possibly a US default. The Tea Party wing of the Republican Party remains the most stubbornly opposed to any compromise on the matter. ...
Financial crisis for Dunedin City Council
Stuff.co.nz
Dunedin City Council is facing a financial crisis, with two internal reviews warning it faces a $8 million revenue shortfall. Dunedin Mayor Mayor Dave Cull was an angry man when breaking the news, saying "hard choices" would probably need to be made to ...
From the sublime to the ridiculous
Sydney Morning Herald
We put this to John Walker, the chief of the leading litigation funding company IMFAustralia. "It's one thing for companies to conduct illegal activities," Walker said yesterday. "It's another for companies not to tell the market when it's material. ...
10 Ways to Get Americans Spending Again
U.S. News & World Report (blog)
In a recent overview of the US economy, the International Monetary Fund (IMF) listed two main concerns about the country's fiscal condition and deficit fight. One was default. The second was steep spending cuts, or what the IMF described as "an ...
St. Kitts-Nevis Gets US$35 Mil from IMF
The St. Kitts-Nevis Observer
By LK Hewlett The International Monetary Fund (IMF) announced Thursday that St. Kitts-Nevis can immediately access $35 million of a US$84.5 million Stand-By Arrangement. According to an IMF press release dated July 28, the IMF's Executive Board has ...
Cyprus Cabinet resigns as euro crisis spreads
Telegraph.co.uk (blog)
Eurozone countries, backed by other EU members and by the IMF, put up several billions in what they insist are temporary bridging loans. The bailout fails miserably, worsening the condition of the recipient state while loading more debt on EU taxpayers...
Debt Default Exceptionally Un-American
Center For American Progress
The calls for a new international reserve currency, which gained momentum after the global financial crisis, are only going to get stronger. China and others will shift away from dollar-denominated assets as soon as they can. ...
US debt default: How will it affect you?
NDTV.com
default could cause turmoil in the stock and bond markets, plus a replay of the fear that froze lending in the depths of the 2008 financial crisis. In the chaos, investments you'd think were a sure bet to fall might rise instead, and vice versa. ...
Currency Exchange Rates Insight: The Key Majors GBP,USD & EUR Face Uncertainty...
Currency News
Moving into the latter half of 2011 it wouldn't be surprising to see increasing problems with debt contagion as funding requirement increase. The western markets are closely linked and if the US debt crisis leads to a technical default fear will spread ...
IMF chief: Dollar status in doubt if debt crisis persists | The ...
By Agence France-Presse
WASHINGTON — IMF chief Christine Lagarde warned Thursday that failure to resolve the US debt crisis would likely raise "doubts" about the dollar's status as the world's prime reserve currency. "It would probably entail a decline of the ...
The Raw Story
Euro area cross-border financial flows and the global financial ...
By Editor
The aim of this paper is to highlight the unprecedented adjustments triggered by the financial crisis ineuro area cross-border financial flows. We find that during the turmoil there was a very sizeable scaling-down of gross external ...
The Financial Regulation Forum
No US debt deal may cause dollar decline: IMF chief : News : News ...
By anupama
Failure by the United States to raise the debt ceiling would likely lead to a decline in the US dollar and raise "doubts" among those using it as a reserve: dollarIMF, US debt ceiling, US debt deal.
News : News Paper : News Magazine...
Spain takes the pain of a threatened downgrade as Euro zone ...
By Shaun Richards
His combination of hyperbole and bombast that he and other Euro zone politicians had defeated the threat of contagion was not going particularly well only a week after their new agreement on Greece. This morning events have turned ...
Mindful Money
Dollar status in doubt if debt crisis persists: IMF chief ...
By jan
IMF chief Christine Lagarde warned Thursday that failure to resolve the US debt crisis would likely raise doubts about the dollar's status as the world's prime reserve currency.
Pattaya Daily News - Pattaya...
The IMF Will Contribute Less than One-Third of Greek Rescue ...
By diane
The U.S. newspaper The Wall Street Journal said last week that the IMF is concerned about its huge long-term exposure to the euro, reminding that the.
Daily news from Spain
Advanced economies seriously consider cut their debt to prevent ...
By fanatic74
Advanced economies seriously consider cut their debt to prevent new financial crisis. 2011/07/29 fanatic74 Leave a comment Go to comments. It is worrisome that handful of European countries are struggling with their indebtedness these days. To make matters worse, conceivably invincible no.1 economy of the world, United States is in need of raising its debt ceiling in order to avoid possible federal government shutdown or simply default due to the enormous amount of ...
FIN POL
Gold $8500 Now Possible, IMF Warns American on “Exorbitant ...
The more challenging and real risk is that posed by the coming downgrade or downgrades of US debt, the threat to the dollar as global reserve currency and continuing currency depreciation and debasement. IMF Chief Warns America on ...
The Market Oracle
Wait For Banking Revival Far From Over | LoanSafe.org
By Alex Ferreras
The [euro]1.123 billion private investment means that the Government does not have to borrow at still costly interest rates from the EU or IMF to recapitalise the banks. The latest banking bill is covered by the [euro]17.5 billion ...
LoanSafe.org
Is A New Phase In The Global Financial Crisis Imminent? — Clearing ...
By RSS Feed
Is the world standing on the verge of a new phase in the long running saga of the global financial crisis? Could the next chapter of the financial crisis look similar to the one from 2007-2008? Remember how the dead calm of the summer ... Remember the 0.6 quadrillion dollar problem* ATCA flagged a few years ago in regard to counterparty risk? Guess what, it is still there! The $600 trillion global Over-The-Counter (OTC) derivatives market is still broadly unregulated ...
Clearing and Settlement — Clearing...
Is A New Phase In The Global Financial Crisis Imminent?
By DK Matai
Remember the 0.6 quadrillion dollar problem* ATCA flagged a few years ago in regard to counterparty risk? Guess what, it is still there! The $600 trillion global Over-The-Counter (OTC) derivatives market is still broadly unregulated ...
Business Insider
NewsDaily: Greece to get September bailout from bilateral loans
Euro zone leaders called last week for the next tranche of aid for Greece, which is composed of 5.8 billion euros from the euro zone and 2.2 billion euros from the IMF, to be handled through the bailout fund, the European Financial ...
NewsDaily: Business Headlines
The Daily Bell - IMF: Turning Crises Into Opportunity
IMF's Lagarde Says Clock Ticking for U.S., European Policy Makers on Debt ... Christine Lagarde (left), the new head of the International Monetary Fund, urged U.S. policy makers to quickly agree on a fiscal plan and avoid default...
The Daily Bell RSS News Feed
IMF: Spain's Recovery Faces Potentially 'Severe' Risks | ForexLive
crisis, the IMF warned in its annual Article IV review. In the near term, financial conditions could deteriorate further, reflecting rising concerns about sovereign risks in the euro area, it warned. ...
ForexLive
Jest in a time of cholera | MacroScope
By Ana Nicolaci da Costa
Rating agencies came under a different kind of fire after Moody's placed Spain under review for possible downgrade, fueling contagion risks in the euro zone — they were accused of being shameless attention-seekers. ...
MacroScope
US defaultIMF chief warns of global dangers | Business Recorder
IMF chief Christine Lagarde warned Tuesday the clock was ticking on a US debt deal, as the dollarslid to new lows amid concerns of a looming and ...
www.brecorder.com/...:/1215853:us-default-imf-chief-warns-...

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