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

Tuesday, August 9, 2011

Dr. Doom: 'We have run out of rabbits to pull out of hats.'


Leaders must choose between recession or depression says the economist who ...
Daily Mail
Nouriel Roubini, who predicted the 2008 world financial crisis, said Western financial leaders had tried everything from quantitative easing to lowering interest rates to kick-start the global economy. But the expert, nicknamed 'Dr Doom' added: 'We ...
American Dollar Getting Ditched by IMF
The BQB
The recent debt debacle has caused the International Monetary Foundation (IMF) to contemplate replacing the United States dollar as the world's reserve currency. Could this be the American dollar's fall from grace? The IMF disclosed recently that ...
The new phase of the financial crisis
rabble.ca (blog)
As Krugman, Stiglitz, Dean Baker and many others argue, there is no huge fiscal problem in the US, and certainly no real prospect of a US debt default given that the US Federal Reserve can always finance US government debt. US government bond yields ...
Russia shrugs off US financial crisis
Tne Moscow News
China, the main US investor, with up to $1.15 trillion dollar reserves, has already criticized the American authorities. “Gone are the days when the US could solve its financial problems with credits, a new reserve currency should appear in the world ...
Financial integration, contagion in Asia
BusinessWorld Online
Already, global financial markets are so deeply intertwined that investors in Helsinki happily make money in Hong Kong, China, while a default in Madrid can make bankers lose hair in Mumbai. In theory, freer capital mobility is welfare-enhancing -- it ...
Obama's European Economic Time Bomb
The American
The sad truth is that Greece is all too likely to default on its $450 billion sovereign debt before year-end, which would make it the largest sovereign debt default on record. Under the weight of an IMF-EU austerity program, Greece's economy is already ...
Costs Rise on France Debt Insurance
Wall Street Journal
The IMF warned last month that France cannot risk missing its medium-term fiscal targets given the need to keep borrowing costs low by securing its top credit rating. Of the euro-zone's triple-A countries, France has the highest debt and deficit as a ...
Financial crisis
The Economist (blog)
The dollar is down a bit but US leaders might regard that as no bad thing, given the battle for export share. In the end, not a lot has changed with the downgrade. It is just an opinion, based on the same information that is available to all other ...
Australian economy can weather global market crisis, says International ...
NEWS.com.au
By Christian Kerr An IMF report says Australia is well-placed to weather the financial maelstrom. Picture; File AUSTRALIA is well-placed to deal with a fall in global growth and a plunge on financial markets, with the International Monetary Fund saying ...
CFR.org Roundup: World leaders respond to US downgrade
CNN (blog)
... and an end to the primacy of the dollar, writes CFR's Francis Warnock. Asia: Asian stock markets tumbled Monday, as investors sold off risky assets (WSJ) following the US credit downgrade and rising fears of sovereign debt contagion in Europe. ...
Preferred Stocks Signaling Another Financial Crisis Ahead
Seeking Alpha
In my post entitled "Watching Markets for the Next Shoe to Drop," I discussed how preferred stocks provided an early confirmation signal that the stock market decline in 2007 was unfolding toward a full blown financial crisis. This is due to the fact ...
Ottawa isn't panicking over the financial crisis -- yet
Globe and Mail (blog)
In Canada, political leaders are picking their words carefully as they wait to see how this latest financial crisis will unfold. Still, there is concern among the opposition about the Harper government's approach to this potential global economic ...
3 Plays on Jobs and Another 3 on Europe's Woes
Seeking Alpha
The Swiss have avoided financial crisis while the rest of Europe is bogged down and struggling. Since the Swiss are not a part of the Euro, they are a strong play. Swiss have a strong government, not as much debt as Europe and US. ...
IMF Chief: G-7 Commitment To Ensure Stability, Liquidity Will Help Confidence ...
Wall Street Journal
Lagarde called for a swift implementation of a July 21 euro-zone leaders' agreement promising to strengthen the European Union's fiscal rules, give greater flexibility to Europe's EUR500 billion emergency bailout fund, and finance Greece. ...
NZ in world downturn danger zone
New Zealand Herald
The fiscal stimulus put in place during the global financial crisis was winding down and fiscal policy would turn quite contractionary, he said. "Despite the weaker dollar the US current account deficit is deteriorating and is expected to continue to ...
Why S.&P.'s Ratings Are Substandard and Porous
New York Times (blog)
... Standard & Poor's ratings wouldn't have done much to help you navigate the headwinds of the financial crisis. Investors now think that Ireland has more than a 40 percent chance of a default or debt restructuring at some point in the next five years ...
No Default As Long As The Fed Has A Printing Press
Forbes (blog)
The US's cost of borrowing is unlikely to increase, not yet, not while PIIGS (Portugal, Italy, Ireland, Greece, and Spain) are rampaging through Europe. The US still has the largest, most robust, most diversified economy, and despite our problems we ...
Bill Miller Blasts S&P Downgrade
Wall Street Journal (blog)
The disastrously flawed ratings of these agencies were at the heart of the financial crisis of 2008, and this unilateral action by S&P threatens to create mayhem yet again in the system by creating uncertainty about the ability of the United States to ...
Renewed crisis could drag Ireland under -finmin
Reuters
... too soon to say whether a gloomier outlook for the United States, a key Irish trading partner, would damage the country's growth prospects next year and necessitate additional austerity measures to meet its fiscal targets under an EU-IMF bailout. ...
Financial crisis 2011 – how you might be affected
Which?
The past week has seen stock markets around the world fall dramatically. The FTSE 100 fell by 9%, wiping over £50 billion off the UK's largest companies, while stock markets in the US and Asia have experienced a rapid decline. ...
Emerging-Market Assets Tumble On US Downgrade, Market Uncertainty
Wall Street Journal
Many mortgages in Hungary were denominated in francs before the 2008 financial crisis, and the country's high amount of foreign-currency-denominated debt has made investors wary of the forint, which fell more than 1% against the dollar Monday. ...
The Morning MarketBeat: US Stock Futures Dive
Wall Street Journal (blog)
In Europe, the US downgrade focused minds on the fiscal crisis there. The European Central Bank on Sunday said it would start purchasing euro-zone bonds, including Italian and Spanish bonds. Interest rates for Italian and Spanish bonds have risen to ...
AIG Suing Bank of America for Financial Crisis Losses
New York Magazine
AIG claims that about four out of ten mortgage securities were made to look better than they were by Bank of America, leading to $28 billion in losses during the financial crisis. In lieu of Justice Department prosecutions, investors have filed some 90 ...
Central Bankers Confront Decision on Which Economic Risk Scares Them Most
Bloomberg
By Rich Miller - Mon Aug 08 03:01:01 GMT 2011 Ben S. Bernanke, chairman of the US Federal Reserve, center left, arrives to the Group of 20 (G20) ministers and governors group photo the during the IMF-World Bank meeting. Ben S. Bernanke, chairman of the ...
S&P Seen Surrendering to Tea Party at Expense of U.S. Taxpayer
Bloomberg
... fueling the financial crisis, rattled investors around the world and provided fodder for President Barack Obama's rivals in the 2012 elections. Treasuries rose, the dollar gained, global stock markets tumbled, oil sank and gold rallied to a record. ...
Dow falls sharply; S&P downgrades credit ratings
Sarasota Herald-Tribune
Analysts say traders are shifting out of bonds and European banks are snapping up US debt to steel themselves for a regional financial crisis. S&P Managing Director John Chambers said that the credit rating agency believes the dollar won't be weakened ...
Sovereign debt fears, US financial crisis and consequent recessionary trends ...
Balkans.com Business News
Sovereign debt fears, US financial crisis and consequent recessionary trends have caused Crude Oil prices to crash in the past few weeks.WTI crude for September has fallen 9.2% on week to $86.88 while Brent Crude has fallen 6.2% to $109.37. ...
Why Congress and S&P Deserve Each Other
TIME (blog)
S&P, you may recall, is one of the ratings agencies (the others being Moody's and Fitch) that greased the skids of the financial crisis by awarding AAA ratings to tranche after tranche of mortgage bonds called collaterized debt obligations, or CDOs. ...
Greek Regulator Bans Short-Selling for 2 Months
Fox Business
Low stock market valuations could hurt the cash-strapped country's efforts to achieve its ambitious 50 billion euro privatisation plan to reduce its debt as part of its EU/IMF bailout. Greece is supposed to raise a large part of this sum by selling ...
Stocks Dive as Downgrade Adds to Fears
New York Times
Another analyst noted that the market performance in recent weeks was bringing back echoes of the last financial crisis. The S.& P. 500 was down about 14 percent over the last 11 sessions, and last week was the worst five-day trading period since ...
European Central Bank Intervenes to End Contagion in Euro Debt ...
By David Dayen
Stocks have fallen 2% in early trading, but recovered off session lows and are basically even with the lower opening.
Firedoglake
Osborne and Cameron's eurozone delusion – the contagion is ...
By Editor
Speak to any trader or analyst about what they think will happen if there is a crisis event in the eurozone, like a default, and they are all agreed: there will be a run on the banks similar to the crash of 2008. ...
Labour Uncut
European financial crisis « Bayesian Investor Blog
By Peter
European financial crisis. Arnold Kling has a concise summary of the current crisis: Apparently, the resolution of the debt ceiling restored the dollar's status as a safe haven in the eyes of the world's investors. ...
Bayesian Investor Blog

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