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

Monday, August 15, 2011

Financial crisis? It's the politics, stupid!


Financial crisis? It's the politics, stupid!
Economic Times
But a Spanish default would be crippling, and an Italian one would be fatal. This fear sparked last week's panic selling in stock markets. If the panic spreads, a double-dip recession will follow. This is not a mere economic or financial crisis...
Coming Week Market Movers: Willcommen, Bienvenue, Contagion!
Business Insider
While it was understood that Greece would default at some point, the understanding was that the EU would protect private bondholders (mostly the EU banking system itself) from losses rather than risk a crisis from destabilizing EU banking. ...
Domestic concerns drive Franco-German talks
Financial Times
There is little doubt that the presence of Ms Merkel in Paris is intended to help Mr Sarkozy in his efforts to calm the markets and voters as he attempts to tackle the financial crisis. An opinion poll last week in Le Parisien, the French newspaper, ...
Contagion Watch: Assessing European Banks Under Fire
Seeking Alpha
All are now either trading at less than a dollar per share or are precariously close. The following is price performance since July 29, 2011: As mentioned above, these four countries imposed their own versions of a short sale ban on financial stocks. ...
Is There a Financial Crisis?
Seeking Alpha
Therefore, we believe we are not in the midst of another financial crisis. We believe the US stock market will continue to follow its 2004 trajectory. If so, the S&P 500 will rebound during the month of August and September, fall in October, ...
Europe dragged into closer union
The National
The issuance of eurobonds - backed by all the euro governments - would mark a historic step towards integration and could also stop the contagion on European markets, say supporters of the idea. But the plans for eurobonds face stiff opposition from ...
Financial Crisis Or Delusional Circus?
Elite Inside Trader
Hello there! If you are new here, you might want to subscribe to the RSS feed for updates on this topic. Let's begin this commentary by asking exactly what specific “Lehman Bros” type crisis recently occurred or will occur which justifies this nasty ...
What does austerity mean & is it virtue or vice?
Chicago Tribune (blog)
You've heard it over and over again -- the word "austerity," or the spending cuts the US and Europe are supposed to make to get rid of the trillions in debt that governments took on before and during the financial crisis. But what does austerity mean? ...
NYU's Nouriel 'Dr. Doom' Roubini: 'Karl Marx Was Right'
International Business Times
Economist Nouriel "Dr. Doom" Roubini, the New York University professor who four years ago accurately predicted the global financial crisis, said one of economist Karl Marx's critiques of capitalism is playing itself out in the current global financial ...
Deflation Mutes Yen Effect
Wall Street Journal
In a paper entitled "About the Real Effective Exchange Rate," they found that while the yen has risen steadily in nominal terms against the dollar since the onset of the global financial crisis in 2008, its "real" value—in price-adjusted terms—has ...
Bangkok Post : Southeast asia: The world's best kept secret
Bangkok Post
Southeast Asia's nimble economic performance through the global financial crisis years of 2008-09, and again in 2010, has got everyone guessing. Not only did its 10 or so economies not shrink, but the broad revival _ economic growth of 9.3% in 2010, ..
Death Star Washington Mulls The US Dollar's End
The Market Oracle
The US sub prime crisis, Japan's Fukushima disaster, and Europe's PIIGS rout are the final nails in the coffin of the dollar reserve system, which in "gold money" terms already died a long time ago - in 1971 - when Nixon pulled the plug on official and ...
Surplus promise becomes objective in tough times
Sydney Morning Herald
Photo: Andrew Meares VOTERS would prefer either Malcolm Turnbull or Kevin Rudd to lead the nation should there be another global financial crisis, despite the two having had diametrically opposing views on how to best tackle the first crisis, ...
Europe: Lacking a Long-Term Solution
Huffington Post
The Contagion Continues to Spread The markets are already betting for the ratings agencies to downgrade France's debt with credit default swap spreads widening to double their level at the beginning of July. A rising expense to insure against default ..
Gold Coast bids for mining dollar
ABC Online
But the global financial crisis and rising Aussie dollar have taken a toll and unemployment is now at around seven per cent. The Gold Coast City Council is determined to turn the tide and has decided if the jobs aren't there for workers it will export ...
<B>N Chandra Mohan:<B> Watch out for Europe
Business Standard
Prices of five-year Credit Default Swaps – that offer protection against default across the euro area sovereigns – in Greece, Ireland, Italy, Portugal and Spain are at all-time highs. Market prices imply an 88 per cent chance of default in Greece in ...
BUSINESS IN BRIEF
TheChronicleHerald.ca
It is one of the biggest claims so far to originate from the practices that led to the financial crisis. Germany's Commerzbank booked a 760-million euro ($1.1 billion) write-down on holdings of Greek sovereign debt; as a result, quarterly profit fell ...
ECONOMY: Small business lending demand may be shrinking
North County Times
Small-business lending started off the first half of 2011 in the two-county San Diego and Riverside region on a flattish note, but with a financial crisis erupting across the world in recent weeks, local bankers are quivering as they begin to see ...
Forex - EUR/USD weekly outlook: August 15 - 19
Forex Pros
Forexpros – The euro edged modestly higher against the US dollar on Friday, capping a tumultuous and volatile week for currency markets, highlighted by an historic downgrade to the US credit rating and heightened concerns over sovereign debt contagion ...
Where is the safe haven now?
The Standard
The downgrade of the United States by Standard & Poor's has taken many investors by surprise, and makes it clear that the financial crisis is not over just yet. One could see it coming a long way though, since high deficits and government debt have ...
French press review 14 August 2011
RFI
The French weeklies are focused firmly on the ongoing financial crisis. Le Point publishes a 24-page dossier on the crazy week that rocked the markets, the euro and the dollar. The journal has a minute by minute account of 8th August in the White House ...
What to Look For in This Week's Global Markets
International Business Times
First and foremost, Central bankers have been quick to take action in order not to experience another 2008 financial crisis meltdown. The European Central Bank (ECB) was quick to announce that they would be purchasing Spanish and Italian debt at the...
The Saudis can't afford an oil price slump
Telegraph.co.uk
Oswald Clint, an analyst at Sanford C. Bernstein thinks Saudi Arabia may reduce its oil output sooner than it did after the financial crisis in 2008. Photo: AP By Garry White, and Rowena Mason After all, during the fallout from the credit crisis the ...
The Purpose of the Supercommittee
Town Hall
... in the debt ceiling negotiations, and she got her revenge, spiking her slate of nominees to the "supercommittee" with liberals who either fail to understand or else fail to care about the fiscal crisisrapidly engulfing the United States. ...
Terms of Spectrum Auction in Greece Rankle Operators
New York Times
Proceeds from the sale would help Greece weather its financial crisis. But Greece, despite its grave fiscal problems, is by no means acting like a distressed seller. The country is planning to sell 14 units of prime 900-megahertz spectrum. ...
These riots were political. They were looting, not shoplifting
The Guardian (blog)
On one half the contagion of the street, as the rioting spread, on the other the contagion of the markets as stocks plunged. Long before it became clear that we were heading for a double-dip recession, the notion that a single dip on this scale would...
More Response to Westen's "Story" Theory for Obama
Huffington Post (blog)
Obama's crises hadn't yet spilled over to the real economy; most people thought the financial crisis was still largely confined to financial sectors/housing/mortgages. The elite were not coming forward with plans to solve the problems. ...
EUR/USD Daily Fundamental Analysis for August 15, 2011
ForexTV.com
Choppy trading will prevail with the start of the week for sure as investors assess the outlook for theeuro area under the new ban and whether the taken measures from central banks worldwide where sufficient to stem the contagion and ease the pressure ...
The Yuan Is Not the Answer
Wall Street Journal
For the last two years the government has ordered the banks to expand lending to the state-owned enterprises to keep growth going after the global financial crisis. Now the bankers are being told to rein in credit, and they naturally choose the safe ...
Will France's Short-Selling Ban Only Delay the Inevitable?
Seeking Alpha
Until recently, speculation over troubled eurozone member states was confined to the PIIGS—the periphery nations. Yet, within the last week, chatter has begun to circulate that France could be the next nation to come under fire. ...
Rating agencies themselves deserve poor grade
Calgary Herald
Ratings above subsequent regulatory cutoffs provided little guarantee against default during thefinancial crisis. Rating agencies generally did not exhibit forecasting capacities superior to those embedded in available market prices. ...
The world's nations must cooperate or perish
Santa Rosa Press Democrat
Gordon Brown was Britain's chancellor of the exchequer from 1997 to 2007 and prime minister from July 2007 to May 2010. He chaired the April 2009 G-20 meeting that addressed the global financial crisis. From the Washington Post.
The fall of the last Superpower in the trillion dollar war
Vanguard
The author of the Global Economic Recession and the Human Condition: An African Perspective, Mrs. Uchenna C. Ekwueme, said: “As we all know, the origin of the current financial crisis can be best understood as a crisis of global political economy ...
Burning questions remain after a week of sweating it out with the stock market
Chicago Tribune
Lousy employment numbers, a crippled housing market and a rebirth of worries over a potential global financial crisis are clear reminders that forecasts for a strong recovery have fallen short. There is wishful thinking that Federal Reserve Chairman ..
Experts weigh in on recession
Atlanta Journal Constitution
The burst of the housing bubble, the unprecedented explosion of consumer debt and the disastrousfinancial crisis of 2008 left an economy strewn with “bad” assets — property worth less than what an owner owes on it. With so many bad assets, ...
Italy Seeks a Bail Out « Blogs For Victory
By Mark Edward Noonan
There is no way to make up for this deficit between debt and wealth…either by printing money (and thus devaluing the currency) or by straight default, those who hold the bonds of the PIIGS will have to take a loss. ...
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