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

Saturday, July 23, 2011

Contagion fears likely to continue


Contagion Fears Unlikely To Dissipate Despite Greek Deal
Wall Street Journal
While euro-zone leaders also agreed to lower the interest rate charged on bailout loans to Ireland and Portugal, bond yields in these countries are still at very high levels. Under their EU/IMF bailouts, both countries are scheduled to return to the ...
PIIGS Update: Greece to Get Voluntary Debt Restructuring
Seeking Alpha
It's not that a Greek default now has become less likely, it's that the magnitude of the default will be much less than the market feared. And that, in turn, has reduced the likelihood of a sovereign debtdefault contagion. It's interesting that the ...
Debt default would mean financial crisis round two
New Zealand Herald
A US recession would be virtually inevitable and if the global financial crisis of 2008 is any guide, commodity prices would plummet. But so would the New Zealand dollar because in times of elevated risk aversion money drains away from peripheral ...
Computers In China Used For IMF Hack - Source
Wall Street Journal
The IMF is a critical node of international financial and economic information, with vast databases on currencies, bonds, bank finances and other areas. Officially, the IMF said it's not yet prepared to place blame on the hack of one of its servers, ...
IMF poised to take backseat role in Greece rescue
Financial Times
But experts and officials involved in IMF discussions said that the fund would play an increasingly marginal role, focusing on giving its seal of approval to Greek policies rather than providing the loans. Thus far, the IMF has provided about a third ...
Euro crisis: No let-up in Lisbon's belt-tightening
euronews
If that happens, those lenders will suffer a loss and, so, there will be a partial default.” euronews: “Taking into account Portugal's normal rate of growth, will it have the money to pay the interest on the EU-IMF loan?” Álvaro Almeida: “That is one ...
States face 'financial crisis' in event of federal default
Gazette.Net: Maryland Community News Online
"In short, this scenario would produce an unprecedented financial crisis," S&P's report said. For states, S&P's report warned all state ratings would likely receive a downgrade if there is a federal default. "We'd also assume a significant downturn in ...
Rupiah Climbs to Six-Week High on Euro Debt Relief, IMF Report
Bloomberg
The currency headed for a weekly gain after officials announced the 159 billion euro ($229 billion) rescue plan in Brussels yesterday. Overseas investors boosted holdings of Indonesian government debt by 23 percent to 241.76 trillion rupiah ($28 ...
Devastating Portrait of a US Government Default
Business Insider
In a recent article, Simon Johnson, a former IMF chief economist and senior fellow at the Peterson Institute for International Economics, paints an revealing picture of how he envisions a debt defaultdevastating the US economy. ...
India's Nifty Stock Futures Advance as Greece Deal Eases Contagion Concern
Bloomberg
After eight hours of talks in Brussels, leaders announced $229 billion in new aid for Greece late yesterday, risking temporary default in their efforts to prevent the crisis spreading. Bharti Airtel Ltd. (BHARTI), the largest mobile-phone operator, ...
IMF: Colombia Shouldn't Use Capital Controls To Curb Peso
Wall Street Journal
The peso's surge against the dollar has hurt Colombian exporters by making their products less competitive overseas. Colombia "is not at a point where capital controls are needed," Wolfe said. The government has attempted to halt the peso's strength by ...
EU's Rehn: euro zone Greek deal sets clear direction
Reuters
BRUSSELS, July 22 (Reuters) - Europe's top economics official said on Friday euro zone leaders had set a clear direction for ending the European financial crisis. An emergency summit of leaders of the 17-nation currency area agreed on Thursday to ...
Turkey seeks roadmap in face of second global financial crisis
Today's Zaman
If the current impasse remains unsolved by August 2, the US will default on its debt and most likely lose its top notch credit rating, as Moody's and Standard and Poor's have already warned. “We believe that Turkey will suffer minimal consequences from ...
Description: https://mail.google.com/mail/?ui=2&view=bsp&ver=ohhl4rw8mbn4

Further rate hikes required, says IMF
Manila Standard Today
Vivek Arora, mission chief of the IMF, said the Bangko Sentral did the right thing when it raised its overnight borrowing and lending cost by 50 basis points as well as the reserve requirement by 1 percentage point as a part of its policy stance ...
Let's Make A Deal!
FXstreet.com
Against the dollar, though, it gained about 8% after inflation over the past year. The IMF review was aimed at boosting those inside China, including at the People's Bank of China, who have been arguing for change, although perhaps not on as sweeping a ...
Liberal clergy oblivious to financial crisis?
OneNewsNow
A conservative religious organization is questioning why a group of church leaders seems to be encouraging more dependence on the federal government. The comment follows a meeting this week between those leaders and President Barack Obama. ...

REUTER MONEYGRAPH-IMF SDR RATES-JULY 22 US 1.60455
Reuters
JULY 21 JULY 20 JULY 21 JULY 20 US 1.59243 1.59427 IRANIAN 16789.0 16805.2 EURO 1.11970 1.12217 KUWAIT 0.43585 0.43707 UK 0.98475 0.98784 NORWEGIAN 8.70564 8.75749 AUSTRALIA 1.48313 1.48803 S. AFRICAN 10.8328 10.9878 JAPANESE 125.500 126.186 SWEDISH ...
IMF's Greek programme was fatally flawed from the start
Financial Times
... into its present mess, the truth of the matter is that the IMF programme was fatally flawed from the start, in the sense that it prescribed an excess degree of fiscal austerity without the benefit of either a debt writedown or an exit from the euro.
Mispricing will result in 'contagion' of eurozone crisis
FT Adviser
Mispricing of Greek debt due to its inability to restructure or write down borrowing poses a "clear risk of contagion to other 'debt dominoes' in the eurozone" and makes a default both 'inevitable' and 'desirable', Iain Stewart, manager of the Newton ...
Eastern Europe Eyes Euro-Zone Troubles
Wall Street Journal
By PAUL HANNON LONDON—An escalation of the euro zone's fiscal crisis could have a "serious" negative impact on economic growth in the countries of Eastern Europe and the former Soviet Union, the European Bank for Reconstruction and Development warned ...
Debt Crisis Shadow Lifted Over Forint — for Now
Wall Street Journal (blog)
Still, the worry remains that the forint's strength against the euro and dollar could crumble if the government fails to deliver on its fiscal tightening promises. Especially as Hungary will need to start repaying its bailout package to the IMF...
Irish People Adopt the Skeptical View
Wall Street Journal (blog)
The Irish got a much larger 2% cut instead only when EU leaders panicked because they feared Greek contagion spreading to threaten the wider-euro area, said an e-mailer to the national radio show. Almost everyone in Ireland agrees the original bailout ...
22/07/2011Spain: debt deal will 'stop contagion'
Expatica Spain
The Spanish government welcomed the deal reached in Brussels to bail out Greece, saying that it would "halt all possibility of contagion" in the eurozone. "The eurozone countries have agreed on a deal to respond effectively to the situation in Greence ...
Economist Q&A on Europe's debt accord
Spartanburg Herald Journal
... driving up the euro's value. If Greece were not part of a common currency area, it would almost certainly follow the successful adjustment path of other developing economies from a deep financial crisis - official assistance from the IMF or another ...
Markets take comfort in revisions to Greece rescue
Sydney Morning Herald
FEARS of another financial crisis triggered by an implosion in the euro zone have retreated, after the region's leaders unveiled a new €109 billion ($145 billion) rescue package for Greece. Markets welcomed news yesterday that Europe's leaders would ...
Brazil Stocks Post Modest Gains But Trading Jittery
Wall Street Journal
The package for Greece amounts to 109 billion euros ($157 billion) in aid, including official loans from the private sector, and other measures that could help contain possible contagion to other weak economies in the euro-zone from Greece??s debt ...
Looming debt default looks dire for families
Buffalo News
“If we default on our debt even for a few days, it's going to affect interest rates for years,” Schumer said, adding that the economic effects of that would be far more serious than the 2008 financial crisis. by 75 to 100 “basis points” — that is, ...
Canadian Inflation Cools in June
Wall Street Journal
The last time headline inflation declined that much on a monthly basis was December 2008, at the height of the financial crisis. The June data were below market consensus for a 3.6% annual rate and a month-over-month drop of 0.2%. ...
REFILE: IFR-COMMENT: Stable door. Horse. Bolted.
Reuters
The EU has finally realized they need to be preemptive if they are to get ahead of the game and limit contagion risks. There are two themes that we would keep an eye on going forward which will prove important in determining whether the crisis has ...
Price growth brightens outlook for Gold Coast property
Gold Coast Bulletin News
WHILE there's no denying the Gold Coast is still reeling from the repercussions of the Global Financial Crisis, not all the news is bad. A report from RPdata.com shows the more affordable housing market has typically recorded growth in median sale ...
Asian Shares End Higher; Greek Aid Deal Pulls Buyers
Wall Street Journal
TAIPEI (MarketWatch)--Asian stock markets rose sharply on Friday to join a global rally after news of a second bailout for Greece and plans to prevent sovereign-debt contagion in the euro zone sparked solid gains in the region's banks. ...
Calafia Beach Pundit: PIIGS update: Greece to get a voluntary debt ...
By Scott Grannis
The top chart shows the history of 2-yr sovereign yields for the PIIGS countries, while the bottom chart shows the rate on 5-yr Greek Credit Default Swaps. The deal being finalized in Europe that combines more aid to Greece with the ...
Calafia Beach Pundit
ECB's Nowotny: Euro summit has already clearly calmed markets ...
ECB could continue to accept bonds that are in selective default if they have extra guarantees Alternative to aid package for Greece would hve been huge.
ForexLive
“…Debt default would mean financial crisis round two…” | whoar.co.nz
By admin
Debt default would mean financial crisis round two…” Posted on 23/7/2011 by admin. “…If the United States Government were to default on its debt, what would it mean for us? No one knows for sure.There is no real precedent. ...
whoar.co.nz
EU and IMF agree to give Greece 109 billion euros — RT
By RT
Leaders of the EU member states, together with the IMF, have come to agreement on the allocation of 109 billion euros to help Greece out of the financial crisis that might put the very existence of theeuro under question.
News RSS : Today
Oiling the Wheels of Russia's Budget - Robert Amsterdam
By Citizen M
With euro-contagion plaguing Europe and the US facing a looming debt problem, Russia may appear to be a safer financial haven. Look closer however, they suggest, and what you will find is a lack of fiscal strategy and an entrenched over ...
Robert Amsterdam
Spies in China Said To Be Behind IMF Hacking | Max Keiser
By stacyherbert
Or as China basically vendor finances several of the top member IMF countries . . . perhaps it views itself as just looking over its 'investments?' I mean, heck, recipients of welfare (certain sorts anyway) in America must subject .... Guest Post: David Morgan On Silver Price Manipulation, Delivery Default& Supply Shortage Risks · The Fatal Flaw In Europe's Second "Bazooka" Bailout: 82 Million Soon To Be Very Angry Germans, Or How Euro Bailout #2 Could Cost Up To 56% Of ...
Max Keiser
What the European Greek debt deal means | Credit Writedowns
By Edward Harrison
The liquidity issues are the immediate concern because contagion to Italy meant the Eurozone sovereign debt crisis was at a critical point, having imperilled the euro zone's third largest economy. That is why Greece has been cut loose. ...
Credit Writedowns
Default expected in second Greek bailout deal, says senior euro ...
By Valkyries
“Private holders will be hit by losses regardless of what option they choose, and this is default. The expectation is that the contagion effect will be limited because the ECB has decided to bend its rules on Greece. ...
MAARS News
Problem postponed: this euro bailout solves nothing | Firstpost
Equity markets are on a tear this morning following overnight news that European officials had announced a second bailout package for Greece that will halt the spread of the debt contagion. An emergency meeting of eurozone officials ...
Firstpost
Increased Fears Surrounding the Economy -- MrSwing
The Euro gained relief on an easing of immediate contagion fears, although the political implications will also be watched very closely given the potential for substantial opposition within Germany. There were further negotiations ...
Free Daily Swing and Day Trading...
Guest Post: The Great Global Debt Depression: It's All Greek To Me ...
By Washington's Blog
For many of those mortgage-backed securities, credit default swaps were taken out to protect against default.[8]. Of course, there were a great many players in the financial crisis: bankers, economists, politicians, regulators, etc. ...
Washington's Blog
When Default Inspires Relief - WNYC
And since Greece's fiscal troubles began to spiral out of control more than a year ago, there has been widespread fear that a Greek default would lead to contagion. What we're seeing now is just the opposite: A sort of anti-contagion...
The latest stories from www.wnyc.org
What the New Greek Deal Means for the U.S. - The Curious ...
By Roya Wolverson
The thinking here is that the biggest threat to Europe is 'contagion,' or the spread of investor fears about Greece to other shaky eurozone countries like Italy and Spain, which would force bond prices in those countries to rise even higher and make their prospects of paying down debt all the ... The chart shows that, at the beginning of 2009, euro fears accounted for nearly 100% of Italy's rising borrowing costs; by April of this year the euro share had fallen to 40%. ...
The Curious Capitalist
Another Disastrous Euro Bailout Adopted
In spite of the new bailout, the panicked ones had to acknowledge in their pronouncement, that the new plan included a ("transitory") Greek debt default. The European Central Bank and the IMF heads, Dominique Strauss-Kahn and Christine ...
LaRouchePAC
German taxpayers are being asked to socialise Europe's debts ...
By Jeremy Warner
“Today was game changing”, Christine Lagarde, the newly appointed managing director of the IMF, gushed. “It was amazing to see heads of government come together and say what happens to one could happen to another and act collectively”. ... Europe has done what it takes to save the euro. That's the narrative, in any case. In reality, the measures agreed on Thursday night raise as many questions as they answer. What the British response to it all should be is anyone's guess ...Finance
Euro Statement Translated
By Macro Man
We agree to support a new programme for Greece and, together with the IMF and the voluntary contribution of the private sector, to fully cover the financing gap. The total official financing will amount to an estimated 109 billion euro...
Wall Street Pit
The IMF urged the euro zone to take a decisive action to stop ...
The IMF said that Greece Portugal and Ireland should stick to their austerity measures and the wholeeuro zone should make more effort to regain the lost ...
ca.ibtimes.com/.../the-imf-urged-the-euro-zone-to-takedecisive...
Calafia Beach Pundit: Carmageddon, free markets, and the PIIGS crisis
For many months markets have been bombarded with the news that if one of the PIIGS defaults, it could trigger a default contagion that could bring down ...
scottgrannis.blogspot.com/.../carmageddon-free-markets-and-...

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