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

Sunday, August 7, 2011

Death of the Euro is inevitable in continuing European financial crisis

Death of the Euro is inevitable in continuing European financial crisis
Irish Central
Standard and Poor's may have downgraded US long term debt for the first time in history but it is theEuro which is in immediate danger of collapsing. The news that short sellers are now focusing on Italy and Spain after hammering Ireland, Portugal and ...
Obama discusses eurozone financial crisis events with leaders of Germany and ...
Washington Post
In the calls, Obama welcomed the continued leadership of Sarkozy and Merkel in addressing the challenges facing countries in Europe that use the euro as a common currency. The calls came after Italy promised to push for a constitutional amendment ...
US Stocks Suffer Worst Week Since Financial Crisis
Wall Street Journal
Berlusconi's comments came at a hastily called news conference in an effort to quell fears about theeuro zone's third-largest economy. "The somewhat stabilizing news out of Europe [allowed us] to bounce from very oversold levels," said Tom Donino, ...
Australia well positioned to handle turmoil-IMF
Reuters
[ID:nL3E7J50AA] "There is ample scope to cut the policy interest rate and provide liquidity support for banks," the IMF said in its annual health check of the Australian economy. It said the Australiandollar AUD=D4 was overvalued somewhere between 10 ...
EU leaders struggle to tame debt crisis amid contagion
Economic Times
As global stock markets sank for an eighth day, the European Commission called for another reinforcement of the European Financial Stability Facility (EFSF), the 440-billion euro ($623 billion) rescue fund for distressed euro-area states. ...
George Kerevan: European debt contagion: could it cross the Channel?
Scotsman
The ensuing debt crisis in southern Europe would have been contained if Greece had been allowed todefault. No American president would, or could, guarantee California's debts. But stiff-necked Berlin brokered a series of half-hearted bailouts that ...
Markets face fresh chaos, analysts say
AFP
... dollar is not likely to alter that much -- it's been on a downward trend for quite some time now. The stock market could be a different matter." Saxo Bank economist Steen Jakobsen described recent turmoil as evidence of a second financial crisis...
Sd on the spotlight for capital flights
The Swazi Observer
The danger that comes along with the delay in strategic decision making especially about Foreign Direct Investments (FDIs) when there is an economic financial crisis in the country, as it is with Swaziland, despite the bailout granted by European Union ...
G7 policymakers have few options to resolve debt crisis
Globe and Mail
Based on the IMF optimistic projections, real GDP in the advanced economies is expected to grow at an average rate of 2.5% in 2011-2016 – below 2.9% achieved in the last economic expansion of 2003-2007. Meanwhile, government spending as percentage of ...
Group of 7 to meet to address European debt issue
Worcester Telegram
“We have to recognize that the world has entered a global financial crisis that concerns all countries.” For all the hum of activity on Friday, though, many economists and analysts remained unconvinced that sufficient steps were being taken to resolve ...
ANALYSIS: Is China rising? Or just keeping an eye on its money?
Monsters and Critics.com
That has already boosted China's international standing, with European leaders flocking to China - not the US - for pledges of support to back the euro as Europe undergoes its own financial crisis. It's also meant that developing nations have at least ...
Financial crisis: G7 finance ministers to hold emergency conference this weekend
Telegraph.co.uk
Finance ministers and central bankers from the G7 group of industrialised nations will hold an emergency telephone conference this weekend to discuss the turmoil in the financial markets. By Bruno Waterfield, in Brussels The unprecedented downgrading ...
Dollar Faces the Market's Judgment on a S&P Downgrade to AA+ Monday
DailyFX
With the backdrop already roiled by a building global financial crisis; US market conditions took a serious turn for the worst after the close on Friday. Initially starting out as an unconfirmed headline from an unnamed source, we learned that credit ...
French Courts Orders Probe of IMF Head Lagarde
NTDTV
The case involves a 285 million euro payment to Bernard Tapie in 2008. It was paid after he claimed the former state-owned bank Credit Lyonnais defrauded him 15 years earlier when he sold his stake in the sports clothing business Adidas. ...
Downgrade Q&A: Is AA+ So Bad?
Wall Street Journal (blog)
A: There's a grab bag of assorted debt that could get downgraded now, S&P has warned, including bonds issued under government lending programs established in the wake of the financial crisis, some ETFs, hedge funds and more. It's difficult to say yet ...
IMF hails Iran's upbeat economy
Press TV
The International Monetary Fund (IMF) has praised Iran over its accelerated economic growth and successful economic policies and foresees a bright outlook for further Iranian gains. The IMF said in its latest report that Iran's economy grew by 3.2 % in ...
Stay focused on the stalling recovery
Action Forex
In the past week, the US narrowly avoided a default and passed a deficit reduction deal. The ECB at the end of the week indicated it would buy Italian bonds to stem contagion in Eurozone debt markets, among other liquidity measures (see below). ...
Keep calm and carry on as financial crisis looms
Telegraph.co.uk
Even brave little Belgium is threatened, and whatever passes for the European Central Bank's version of a last line of defence proves a Maginot Line against the contagion. We cannot turn to America this time. America, which started it with a little ...
Double dip, or just one big economic dive?
Washington Post
Whereas you normally get out of a recession by lowering interest rates and persuading consumers to spend, the period after a financial crisis is marked by consumers trying to dig out from under a mountain of borrowed money. 
Investors Wary of Downgrade Reaction
Wall Street Journal
The US stock market is coming off its worst week since the financial crisis, knocked down by worries of an economic slowdown and the possible contagion of Europe's sovereign-debt crisis. Some investors giving an immediate reaction to the rating cut on ...
FCIC's Angelides Ignores the Facts Again
The American (blog)
By Peter J. Wallison Last week, Philip Angelides, the chair of the Financial Crisis Inquiry Commission, made another attempt to justify the commission's report with an article on Bloomberg.com. Like all defenders of the Commission's majority report, ...
Big Bucks from China Drive Domestic Development
Inter Press Service
"The big risk now is bonds from the United States, not from Ecuador," Correa joked, referring to thefinancial crisis originated in the United States in 2008 which brought that country to the brink ofdefault, headed off at the last minute this week ...
Criticism of Ratings Agencies Grows
Wall Street Journal
Greece is on the cusp of default status. Austerity packages from crisis countries aimed at shoring up investor confidence have been met with shrugs, at best, by the major agencies, giving the politically toxic tax-hike and spending-cut measures little ...
For President Obama, It's Create Jobs, or Lose One
International Business Times
July's jobs report was adequate, with 117000 jobs created, but the nation is still short a staggering 14 million jobs -- much of that job loss stemming from the financial crisisand 2007-2009 recession which Obama inherited. But don't misunderstand: ...
Neuharth: Conditional thanks to Congress and President Obama
Alexandria Town Talk
They avoided -- or rather postponed -- a very serious financial crisis. For that we owe thanks to 343 members of Congress (out of 533) who voted for the so-called Budget Control Act of 2011, which was passed by the 112th Congress on Aug. ...
Fears US Debt Crisis Will Hit UK Tourism
Sky News
There are fears the financial crisis in the United States could have a major impact on tourism in Britain. To view this content you need Flash and Javascript enabled in your browser. Please download Flash from the Adobe download website. ...
AIG Profits in Wind-Down
Wall Street Journal
The profit numbers are surprising given how far AIG fell following the 2008 financial crisis. In the spring of 2009, company executives estimated that losses from AIGFP could run as high as $20 billion. AIG completed the active wind-down of AIGFP in ...
The second Great Contraction
Aljazeera.net
Why is everyone still referring to the recent financial crisis as the "Great Recession"? The term, after all, is predicated on a dangerous misdiagnosis of the problems that confront the United States and other countries, leading to bad forecasts and ...
Double-dip recession: European banks and American politicians are both making ...
Slate Magazine
... role it plays in nontransparent credit-default swaps. But the real problem stems from another form of contagion: Bad ideas move easily across borders, and misguided economic notions on both sides of the Atlantic have been reinforcing each other. ...
The Post-Western World
Forbes (blog)
“These countries had an exceptionally good decade before the global financial crisishit and most among them have recovered quickly.” The growth trend is clear: the advanced economies are declining. Their biggest problems at the moment are inflation,...
World of Worry
Barron's
What is all but certain is that the FOMC will endorse the current status quo of maintaining its 0-0.25% target for the overnight federal-funds rate, which has prevailed since December 2008, when it was put in place in the financial crisis for an ...
US, Europe, Greece, Chinese economies struggle: How India can sheild itself ...
Economic Times
The aftermath of the financial crisis has shaken economies in all regions of the world, and the fiscal health of many nations is beginning to give rise to significant economic uncertainties. Let us start with the US. The US economy is grappling with ...
On 8th day, world gets that sinking feeling
Asian Age
Equity markets fell sharply for an eighth day on Friday in a dizzying descent that has wiped $2.5 trillion off the value of world stocks this week and brought back memories of the 2008 financial crisis. World leaders moved to address the turmoil, ...
Will We Double-Dip?
Daily Beast
The lingering harm of the financial crisis for the US and Europe means another recession is not guaranteed, but a risk. Yes, I think that we're headed for a double-dip recession, or at minimum a long, unnecessarily drawn-out period of high unemployment...
Wells settles for $59M in Wachovia case
The Herald | HeraldOnline.com
Combined with $37 million from Wachovia auditor KPMG, attorneys said the $627 million total was one of the 15 biggest securities class-action settlements in history and the biggest to emerge so far from the financial crisis...
EU Morning Report: Focus turns to the ECB and BoE Interest Rate Decisions
International Business Times
The US dollar firmed against its major counterparts but fell versus the safe haven Swiss franc and Japanese Yen on heightened eurozone debt contagion fears. Focus turns to the ADP Employment Change Data as well as Initial Jobless Claims. ...
America Leads France to Adopt a Balanced Budget Amendment
Big Government
With a 7% of GDP deficit and 81.7% of GDP debt; the IMF cautioned France is the least stable of the remaining six triple-A-rated euro zone countries. The IMF also warned that with tax rates already amongst the highest in Europe, France's only option ...
Mission 'democracy' is mission hypocrisy
China Daily
We are talking about US Congress passing the historic deal on debt and spending cuts, which ended the threat of a grave financial crisis in America and beyond. But, to put it plainly, it was nothing less than "abject surrender" by President Obama to ...
US loses AAA rating
Las Vegas Review - Journal
It made up a fraction of the losses from Thursday, when the Dow dropped 512, its worst since thefinancial crisis of 2008. Friday was not exactly quiet for the market, either. At the start of trading, investors were thrilled with the unemployment ...

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