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

Tuesday, July 26, 2011

Contagion from Euro-zone comes to Poland via strong CHF

Contagion from Euro-zone comes to Poland via strong CHF
FXstreet.com
This was evident with the outbreak of the global financial crisis, when the CHF/PLN currency pair soared. A similar scenario has reoccurred now, as the CHF/PLN spot rate trades around 3.4. As the proportion of mortgages in francs is still approximately ...
Swift US action on debt needed in global interest: IMF
Reuters
Talks between the Obama administration and lawmakers to craft a plan to avoid potential US default seemed to be making scant progress. Facing an August 2 deadline after which the United States may not be able to issue more debt, both sides have so far ...
IMF Calls on U.S. to Raise Debt Ceiling
International Business Times
... political parties to compromise, find common ground, and raise the debt ceiling with a substantive deficit reduction package. As the IMF noted, the global economy would be hurt by a sudden, large rise in interest rates that a US default would trigger.
Addendum to Huriyet column: The evil IMF creating a crisis
EconoMonitor
I explained in the column that Turkish banking vulnerabilities in the IMF Euro Area spillover paper were blown way out of proportion. Markets chose to concentrate on one single chart among 50, one that was a simple exercise utilizing one Turkish bank, ...
What does the IMF likes and dislikes about China's economy?
«Market Leader» - news and previews making you rich.
Strange as it may seem but last year the IMF Board members were divided over the issue. According to the IMF's report released in late June, the Yuan, which used to be pegged to the US Dollar, is still undervalued by 3-23%. ...
EURO GOVT-Bunds outperform Treasuries on US debt worries
Reuters
By Kirsten Donovan and Marius Zaharia LONDON , July 25 (Reuters) - German government bonds rose on Monday on doubts over whether the second Greek bailout can prevent contagion to othereuro zone states and outperformed Treasuries due to fears of a US ...
Analysis - Argentine crisis survivors: Greece should take heed
Interactive Investor
By Stephen Brown BERLIN (Reuters) - Protests outside the palace, IMF warnings to cut spending, people in suits avoiding the mob, fear of a run on the banks, the spectre of default, a currency fixed to a much stronger economy: Greece, 2011, or Argentina...
European Crisis: Greece Downgraded To Pre-Default By Moody's
Forbes (blog)
Moody's recognized that the new deal “benefits all euro area sovereigns by containing the contagion risk that would likely have followed a disorderly payment default on existing Greek debt,” but warns that creditors' still depend on a fine balance ...
THE OUTLOOK: Turkey's Lessons For Greece On Fixing Fiscal Mess
Wall Street Journal
Euro-zone leaders last week agreed on a second bailout package for Athens. On Monday, Greek Finance Minister Evangelos Venizelos will meet with International Monetary Fund chief Christine Lagarde in Washington. The IMF estimates Greece will need more ...
REUTER MONEYGRAPH-IMF SDR RATES-JULY 25 US 1.60324
Reuters
JULY 22 JULY 21 JULY 22 JULY 21 US 1.60455 1.59243 IRANIAN N/A 16789.0 EURO 1.11497 1.11970 KUWAIT 0.43917 0.43585 UK 0.98390 0.98475 NORWEGIAN 8.66056 8.70564 AUSTRALIA 1.47898 1.48313 S. AFRICAN 10.8565 10.8328 JAPANESE 126.117 125.500 SWEDISH ...
Greek firewall looks porous
Reuters Blogs (blog)
The second Greek bailout was aimed at ring-fencing euro zone contagion, but could unleash it instead. Comments from rating agencies since euro zone leaders agreed to involve the private sector in a Greek rescue plan suggest last week's events have ...
IMF weighs in on US budget debate
UPI.com
House Speaker John Boehner, R-Ohio, Friday walked out on the budget discussions. The government has until Aug. 2 to agree to a plan. After that, the Treasury Department has said, the federal government could default on some obligations.
Varadkar predicts economy will return to growth in 2011
Irish Times
Mr Varadkar said the easing of the EU-IMF bailout terms was a big step in the right direction. “One of the things we promised to do, if we got elected to power, was to renegotiate the programme.” Speaking on RTÉ Radio's This Week programme, ...
US Dollar has reached pre-financial crisis lows: QNB Capital
Gulf Times
The last time the dollar index was trading in this range was in March-August 2008, just before thefinancial crisis. The Federal Reserve's dollar index is a trade-weighted index of exchange rates. Currently, the strongest weights are given to the ...
IMF warns of 'severe shock' if US debt limit unchanged
Inquirer.net
But, with US politicians battling over a plan to slash the deficit, the IMF executive board called on authorities to only gradually reduce spending, to avert “a disruptive loss in fiscal credibility.” Disclaimer: The comments uploaded on this site do ...
A Nervous New World
SilverSeek.com
The proliferation of world debt has also resulted in an enormous explosion in derivatives products, such as credit default swaps, that has created the potential for exacerbating any financial crisis. It was just such derivatives products, ...
Euro Collapse, US Debt Ceiling Default Armageddon Irrelevant to Stocks Stealth ...
The Market Oracle
That the PIIGS will default on their debts, infarct Greece and Ireland HAVE defaulted because the borrowers are being forced to except longer terms and lower interest rates than the market interest rates, a so called orderly default is taking place. ...
How A Default Could Devastate The Country
Business Insider
Its disruption during the financial crisis of 2007 to 2009 contributed to the failures and near failures of Countrywide Securities, Bear Stearns, and Lehman Brothers. “If all the people providing money into this [repo market] look up and say, ...
The Inevitable Financial Crisis
American Thinker
By Mike Razar A mere three years after the last fake financial crisis, we are about to suffer an even bigger one. In short order we can expect to see Greece, Spain, Portugal, Italy, Ireland, etc. default, triggering Professional economists admitting ...
Geithner Pushes Greek Finance Minister on Rescue Implementation
Bloomberg
EU leaders on July 21 reached an agreement on a second rescue package for Greece worth 159 billion euros ($228 billion) and strengthened the region's bailout mechanism to offer protection to other euro-region nations in a bid to stamp out contagion ...
The Perverse Politics of Financial Crisis
Project Syndicate
... or they believe that a default can be avoided and deploy all the resources at their disposal as fast as possible. As in many wars, a staged escalation in a financial crisis often leads to the worst possible outcome: a defeat with large losses. ...
EURO GOVT-Peripheral euro zone CDS up on Greek aid doubts
Reuters
LONDON, July 25 (Reuters) - The cost of insuring most peripheral euro zone government debt against default rose on Monday on market doubts that the fresh aid package for Greece agreed last week will protect bigger economies from contagion...
Aussie Joining Reserve Currencies as Central Bankers Seek Commodity Havens
Bloomberg
New Zealand's dollar was little changed at 86.47 US cents, while Canada's dollar was little changed at 94.83 cents per US dollar. The krone traded at 5.4028 per US dollar from 5.4144 in New York on July 22. The latest data from the IMF show the ...
Merkel Has Tough Sell on Aid to Greece
New York Times
Besides, he argued, “the danger of contagion justified the need to help Greece in April 2010 with coordinated bilateral loans.” Despite that aid package, the contagion did occur — which is whyeuro zone leaders had to agree to yet another package last ...
European Bank Stocks Avoid 'the Abyss' as Investors Remain Wary
San Francisco Chronicle
July 25 (Bloomberg) -- European bank stocks, which posted their best three-day rally in a year last week, may struggle to maintain those gains as investors expect more writedowns, capital raisings and more contagion from the debt crisis. ...
China's European Shopping Spree?
Foreign Affairs
That honor falls to German and other northern European taxpayers, the funders of the Generally speaking, a country has only four options for getting out of a financial crisis: devalue, inflate,default, or deflate. For any country inside the eurozone, ...
COLUMN-Trichet loses face but leaves ECB a winner
Reuters
... the collateral card was the closest he had to an ace: refusing to accept Greek sovereign bonds as security would deprive Greek banks of the funds on which they rely, crippling Greece's economy and risking contagion to other euro zone economies. ...
Sovereign Debt Risk Rises on Bets Greek Rescue Won't End Crisis
Bloomberg
Concern the US may lose its AAA ranking even if lawmakers reach a plan to avoid default next week also weighed on confidence. “A new outbreak of contagion remains a very real risk,” said Bill Blain, co-head of strategy at broker Newedge Group in London ...
Tobin Tax Shows New Promise, or Threat
Forbes (blog)
Oxfam takes a similar view, saying that the financial crisis blew a $65 billion hole in the budgets of low income countries while remittances dried up and export revenues have declined. After the Asian crisis in 1997, adds Oxfam, the number of ...
Turkish CA deficit and growth
EconoMonitor
Also note, not much help will be coming from the denominator (ie nominal GDP in dollar terms), because it won't change much given the low growth (2.5%) and stable real exchange rate assumptions in the IMF scenario. In the bigger scheme of things, ...
Analysis: UniCredit to lead cash queue if EU crisis worsens
Baltimore Sun
Whether more big banks join it is likely to hinge on the speed and severity with which the euro zone crisis plays out. "Many banks out there will have to raise capital in the event there's contagion due to the Greek, Portuguese and Irish issues," said ...
Euro rally slows after the EU debt agreement
FXstreet.com
There was still a lot of the debate and analysis on the new EU rescue package for Greece and additional measures to lower the risk for further contagion to other EMU countries. Looking at the market reaction, the EU agreement was considered a step in ...
Low Volatility Day Ahead
FXstreet.com
In turn, contagion fears are still lingering in the 17-nation union. Credit Default Swaps (CDS) on Germany are stationed higher than those of the United States, despite the same credit rating and potential default from the US CDS on Germany are higher ...
The Worst Of Times For 2 Cities
Bond Buyer
One major factor binds Harrisburg, Pa., and Central Falls, RI Their states recently took preemptive moves hoping either to ward off a bankruptcy filing by the cities or, in Rhode Island's case, to avert “contagion,” or a domino effect, of downgrades ...
Portugal says no softening of austerity post-summit
Reuters
"Mainly, by reducing the probability of contagion. Secondly, it will have a positive impact by improved financing conditions helping the sustainability of Portuguese public accounts." Portugal became the third country in the euro zone to seek a bailout ...
Bankrupt Greece Blackmails Europe, Bailout or Euro Zone Dies ...
However throw in the derivatives exposure that also includes Portugal and Ireland and then the figure jumps to at least £350 billion with a figure approaching £800 billion or about 60% of GDP as thedefault contagion would not stop with ...
The Market Oracle
IMF: U.S. Must Quickly Raise Debt Ceiling, Get Debts In Order
By The Huffington Post News Editors
The IMF said if Greece did not except Austarity Mesaures they would default. So the Grrece Politicans passed it and took the IMF Loans with such high interest rate the Country will Forever owe the IMF. Now Greece is going to Default and ...
The Huffington Post | Full News Feed
Between a Rock and a Hard Place: U.S. Fiscal Policy « iMFdirect ...
By iMFdirect
The fiscal problem was center stage in the IMF's 2011 annual assessment—or Article IV consultation—of the United States' economy. Discussions centered on the need to balance long-term adjustment and short-term support for the recovery. ...
iMFdirect - The IMF Blog
Occupying Greece and other PIIGS Boost Blitzkrieging Deutsche Bank ...
By maxkeiser
Weren't it these PIIGS countries that first got their infrastructure with EU subsidies, then they got theEuro and cheaper credit, and then they didn't reform their institutions, didn't collect tax, lost complete discipline in sociast ...
Max Keiser
Activist Post: IMF warns on US debt, markets slide
By Activist
WASHINGTON (AFP) - Pressure rose on President Barack Obama and top lawmakers Monday to avert a ruinous US debt default just days away, as stocks slipped and the IMF warned of a "severe shock" to the world economy. ...
Activist Post
Germany: an economic miracle? Or the result of growing imbalances ...
By Ernst Labruyere
'Growth is mainly dependent on the international trade', according to IMF economist Ashok Mody in his clarification to a recently published report on Germany. In spite of its large economy, Germany is no significant source for worldwide growth. ... within the Euro-zone that could be compared with the relation between the US and Greece: as a consequence of underconsumption in China, together with the coupling of the yuan to the dollar, overconsumption evolved in the US. ...
Ernst's Blog
IMF calls for action on US debt | Ghanamma.com
By Bright Owusu
The IMF also called for a “comprehensive solution” to reduce the US deficit over the medium term. Without this, IMF directors warned, the markets could lose confidence in Washington's ability to pay its debts. The US risks default on ...
Ghanamma.com
PIIGS “Я” Us? The coming U.S. debt crisis and what can be done ...
By Calgary Beacon
The United States of America has the largest, most innovative and most flexible economy in the world. But two years after the global financial crisis of 2008-2009, the U.S. economy is struggling badly to recover. ... U.S. and around the world were heavily exposed to the U.S. and other housing markets through the residential mortgage market, not only as mortgage originators, but also through widespread securitization of mortgage debt and the use of credit default swaps. ...
Calgary Beacon
Euro contagion « Euro Rate Forecast
However as strange as it sounds this really could lead to some Euro strength. If the Greeks are having a controlled default then contagion is less likely to ...
www.eurorateforecast.com/tag/euro-contagion/
More IMF aid for Greece -- or not? — EUbusiness - legal, business ...
At a minimum, the IMF is expected to continue to press Athens for austere budget measures and structural reforms under the 30-billion-euro ($43 billion) ...
www.eubusiness.com/news-eu/imf-greece-eurozone.bir
The euro crisis and the PIIGS – What about the EU's biggest worry ...
by 1way2rock The euro crisis and the PIIGS - What about the EU's biggest worry is Brussels (RPO) € on a four-month low, focus on the markets in Italy.
economicsnewspaper.com/.../the-euro-crisis-and-the-piigs-wha...
the euro zone financial crisis
President Barack Obama and German Chancellor Angela Merkel in talks Tuesday to agree on the need to resolve the financial crisis the euro zone for the good ...
www.develimarble.com/tag/the-euro-zone-financial-crisis
Euro slides as contagion fears spread
Commodity futures news: Euro slides as contagion fears spread, updated 2011-07- 13 06:57:08. Watch for more news articles, provided throughout the day ...
futures.tradingcharts.com/.../Euro_slides_as_contagion_fears_...
FxMemo - Forex News - FOREX-Contagion fears rattle euroeuro zone ...
Here you can find all the latest breaking forex and currency news about FOREX- Contagion fears rattle euroeuro zone bonds including currency analysis and ...
www.fxmemo.com/forum/thread/3401233/

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