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

Thursday, August 25, 2011

Fanning The Financial Crisis: Has Regulation Gone Wrong?


Fanning The Financial Crisis: Has Regulation Gone Wrong?
Forbes
The logic is that most Greek and other government debt are held by banks, so if we let these countries default the banks will default, so we are back to November 2008. So we are really asked to bail out banks, but given that banks are hated so much we ...
Think the Government Handled the Financial Crisis Badly? Just Wait, Because ...
Fox News
The financial crisis and the debt ceiling compromise has produced yet another bad idea -- the Congressional super committee, charged with having to come up with an additional $1.5 Trillion in spending cuts. If they fail to reach an agreement, ...
European Endgame
Huffington Post
And that might be where the Euro-zone is headed. Instead of fixing the financial crisis, the EU postponed it with a get-poor-quick pyramid scheme, by sending the debts of households to banks, who sent it to governments, and governments passed it on to ...
CBO: Dollar's Value to Decline Moderately Over the Next Decade
Wall Street Journal (blog)
In the update of its economic and budget forecast, CBO noted that, by that measure, the dollar has been falling for most of the past decade, with the exception of the upturn during the global financial crisis. “So far this year,” CBO said, “the dollar ...
Sessions addresses US financial crisis
Shelby County Reporter
“The truth is our country is facing financial crisis. It's real,” Sessions said to the group of about 40 senior citizens and local leaders. “We're borrowing 40 cents of every dollarwe spend. It's not going to get better unless we do something about it ...
Fed Made State Street Profitable as Middleman
Bloomberg
By Christopher Condon - Tue Aug 23 23:01:00 GMT 2011 State Street Corp. and JPMorgan Chase & Co. profited during the financial crisis by borrowing $200 billion almost risk-free from the Federal Reserve under a program intended to rescue money-market ...
Moody's: don't see contagion from Europe spreading to Japan
Reuters
TOKYO (Reuters) - Europe's sovereign debt crisis is unlikely to spread to Japan's government debt market due to its current account surplus and large holdings of assets overseas, Moody's Investors Service said on Wednesday. Future ratings actions on ...
Spain debt cap to allow overspend in lean years
Reuters
Battling to shore up market confidence in its deficit reduction programme in the face of a fiscal crisisthreatening to engulf the euro zone, Spain said on Tuesday it would set in stone a binding cap on public debt before elections in November. ...
Cooper: Politicians have worsened financial crisis
Calgary Herald
Second, the fact that the euro is the only major currency in human history that is backed by regulations and not an army, means that when countries break the rules on a grand scale, no one can enforce them. So the EU now finds itself in the midst of a ...
S&P forecasts jump in CLO defaults
Financial Times
S&P's base-case scenario estimates that the current junk-rated default rate of 3.8 per cent could jump to as high as 7.5 per cent by the end of 2012 – compared with a longer term average of 4 per cent. At the end of December 2008, the financial crisis ...
The summer months are often the worst for stocks
Fox News
The S&P 500 fell 14.6 percent during a financial crisis in Asia. That was also one of its 10 worst months. "Historically, the market just doesn't do very well in the third quarter," Stovall says. "It's one of these dance routines the market tends to go ...
Could Goldman Sachs Group Inc. (NYSE: GS) CEO Lloyd Blankfein Do the First ...
Money Morning
That means, and I cannot stress this strongly enough, that he is innocent in the court of law - even if he is held slightly above pond scum in the court of public opinion for his and Goldman's role in causing the financial crisis...
Forex: The US dollar plumbed a record low against the yen
FXstreet.com
The benchmark S&P 500 index has shed 13.1 percent so far in August and is on track for its worst month since October 2008, when the financial crisis and deep recession mauled markets. Concerns about the euro zone's debt crisis have weighed on financial ...
Manufacturing firms need assistance
China Daily
This is the greatest challenge the industry has faced since the global financial crisisthat started in 2008. But, unlike during the financial crisis, the problems faced by the industry today are related to the domestic market. ...
IPO blues: tech's hot summer cools off
Reuters
By Brent Lang Until the European financial crisis and debt-ceiling fiasco, Silicon Valley companies were sizzling on Wall Street. Investors gobbled up public offerings from Pandora and LinkedIn and hungrily awaited the stock-market debut of coupon ...
What Italy tells us about Europe's debt crisis
TIME (blog)
So is it any surprise that Italy has been tarred as one of the PIIGS and fallen into a debt crisis? Actually, it is. Yes, Italy has its economic problems, but its government has not been fiscally irresponsible, with a much more conservative record than ...
Analysis: Slowdown could make Germany rethink euro crisis stance
Reuters
The main index fell to 108.7 in August from 112.9 in July, the steepest one-month drop since November 2008, shortly after the collapse of US investment bank Lehman Brothers triggered the global financial crisis. "The numbers have come down hard," said ...
Markets Remain Unkind to BofA
Wall Street Journal
... much sounder than it was before the 2008 financial crisis. The cost of insuring the Charlotte, NC, lender's bonds against default surged Tuesday to $435000 a year for five-year protection on $10 million in debt, according to data from Markit Group. ...
Light-rail disease
Financial Post (blog)
By Peter Shawn Taylor Forget AIDS or SARS, there's a new billion-dollar contagion popping up across the country. Symptoms include visions of grandeur, severe loss of reality and a propensity to enact massive tax hikes. It's called LRTS: Light-rail ...
Is It Eurobonds Or Bust For The Eurozone?
San Francisco Chronicle
So the EFSF rescue fund itself, may end up causing contagion and threatening Europe's largest economies. Closer fiscal union would eradicate the need for the EFSF since it would give bailed-out nations a route back to financial markets to raise money ...
IMF: Chile Government Should Cut Spending Further
Wall Street Journal
Chile increased spending in 2009 to combat a recession stemming from the global financial crisisand has since reined in spending to contain inflationary and exchange-rate pressures. "In the near term, greater fiscal restraint would help guard against ...
Forex News – Swiss franc strengthens against dollar and euro
Trading Point
Safe havens are still in high demand since the threat of a debt contagion within theeuro zone is still possible and also added to these concerns is the fact that the world's powerhouse, the US economy, is slowing down and may need further stimulus. ...
European Yields on the Rise
Briefing.com
Spanish yields are also on the rise as investors remain worried about holding PIIGS debt. Modest selling in the space has yields up as much as 5 bps with the Spanish 10-yr now at 4.999%. UK Gilts and German Bunds are seeing yields rise as investors cut ...
Can China Save The World? Towards A New Economic Model
The Market Oracle
As the West contemplates a new phase in the global financial crisis, China -- the second biggest economy on Earth -- appears to some executive decision makers to be well placed to sail through the doldrums of the global financial markets or even use ...
Bank Of China Plays Down Worries Over Local Government Debt
Wall Street Journal
... concerns that they pose a default risk. The bank, one of China's big four state-run lenders, was the largest credit issuer in a two-year lending binge to regional and city governments that took hold shortly before the global financial crisis hit. ...
Japan boosts FX monitoring, creates $100 billion credit line
Reuters
This is the third time that Japan tapped into its foreign reserves to stabilize markets amid global turmoil since the financial crisis of 2008. The credit facility, to be in place for a year, is aimed at facilitating companies' acquisitions of overseas ...
Correlation to end for bank stocks?
FierceFinance
Correlation was an unfortunate reality during the financial crisis. No matter how strong your balance sheet, you could not escape this powerful market force. Now we're seeing something of a return to the 2008-2009 mindset, when macro-fear is again ...
Wall Street looks set for second day of gains
BusinessWeek
The Justice Department is looking into Goldman's actions leading up to the 2008 financial crisis. HJ Heinz Co. fell 1 percent in premarket trading after the world's largest ketchup maker said profits fell 6 percent in the most recent quarter. ...
Where 30 Years of Real Class Warfare Has Left America
Huffington Post
Oh, and you'll likely be living from financial crisis to financial crisis. Before you die, you're probably going to get sick, which will cost so much that even if you have insurance you may well have to declare bankruptcy. And there's a good chance ...
Five Reasons HUD/FHA Loans Are Gaining Popularity
National Real Estate Investor
Private-sector lending remains constrained since the financial crisis, however. To meet their credit needs, a number of commercial borrowers are turning to the US Department of Housing and Urban Development (HUD) and its mortgage insurance arm,...

Germany May Want PIIGS Gold as Security for 'Bailouts' – Merkel's Officials in ...
Gold Seek
The German people and lawmakers realize that the euro is being debased and lawmakers realize that gold may offer protection from the debasement of the euro but also from sovereign default and systemic contagion. Some of the PIIGS (to use the ...
GLOBAL MARKETS-Gold falls, dollar inches up while stocks dip
Reuters
By Caroline Valetkevitch NEW YORK, AUG 24 (Reuters) - Gold prices dropped on Wednesday and were headed for their biggest two-day loss since the peak of the financial crisis, while the dollarrose as investors bet a speech by the Federal Reserve ...

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