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

Wednesday, August 10, 2011

Global Debt Disaster: What the Financial Crisis Means for Germany


Global Debt Disaster: What the Financial Crisis Means for Germany
Spiegel Online
"The unresolved dollar and euro crisis is an economic risk and thus also a potential burden for our businesses." One concern is that interest rates could rise in response to the downgrading of the US credit rating. If that were to happen, ...
Russia braces for new global financial crisis
RIA Novosti
Yet the ruble started to slide as the US dollar rose 2.2% in Russia exceeding the 28 ruble level predicted for 2014. The ministry is striking a precarious balance between enjoying its position as a reliable forecaster and sounding too pessimistic. ...
Markets in turmoil as financial crisis deepens - live
The Guardian (blog)
Such losses are reminiscent of the depths of the financial crisis. 7.43am: Few of you will be surprised to hear that gold hit another record high overnight. The spot price leapt to $1771 per ounce, up $50 per ounce. Analysts used to speculate about ...
IFR-Fears of financial crisis redux unfounded as funds flow
Reuters
Banks have learned lessons from being overextended in the credit crisis and are now better capitalized and more risk averse than they were before. While their more cautious tack has eaten into earnings, it has also put them in better stead to weather ...
Financial Crisis 2.0: Could Bad Mortgages Derail the Economy Again?
The Atlantic
How about another financial crisis? At this point, seeing a financial crisis as severe as the one in 2008 isn't likely. Banks have stronger capital cushions now than they did then, and a fair amount of the risk has worked its way out of the financial ...
The Fiscal Crisis Could Endanger Both Parties in 2012
The Atlantic
By Charlie Cook After Monday's gut-wrenching 634 point, 5.6 percent drop in the Dow Jones industrial average, any sense of complacency, of business as usual, should be gone. Until the bottom fell out of the stock market, the partisanship and ...
FSA Publishes Plans For Banks To Prepare For Financial Crisis
NASDAQ
By Marietta Cauchi, Of DOW JONES NEWSWIRES LONDON -(Dow Jones)- The Financial Services Authority on Tuesday published its proposals for financial institutions to identify how they would cope in the event of a financial crisis, including the provision ...
China backs global efforts on financial crisis
Sacramento Bee
AP BEIJING -- China's Cabinet on Tuesday issued strong support for the latest global efforts to handle financial uncertainty and urged continued effort to reduce fiscal deficits. China affirms recent statements from finance ministers and central bank ...
Mexico's economy to grow 4.5 pct, IMF says
Fox News
Washington – Mexico's economy has rebounded from the global economic crisis and will grow about 4.5 percent this year, while "inflation has remained benign," the International Monetary Fund, or IMF, said Monday. "After a sharp contraction in 2009, ...
Financial Crisis, Economic Crisis, Debt Crisis: What's next
Seeking Alpha
Since the US dollar is the world's reserve currency, what the Fed does affects all countries that either carry significant foreign exchange reserves in dollars or carry dollar denominated debt. The value of these investments would reduce with each ...
Why an Italian bailout might not work in the financial crisis
Alaska Dispatch
Since Standard & Poor downgraded its credit rating outlook last May, Italy's public debt has been under constant attack from international markets, fostering speculation about the country's possibledefault. Wealthier eurozone nations such as Germany ...
Advisers react to expanding fiscal crisis
Buffalo News
By David Robinson For the better part of a year, Aleksandrowicz has been warning his clients about the risks of financial default in European nations, like Greece, Spain and Italy. He's worried about the growing US fiscal crisis...
Towers Watson Sees Bumpy Path to Global Economic Recovery
MarketWatch (press release)
... with the greater impact likely to be from a gradual pickup in the speed foreign investors diversify away from US dollar assets. However, the absence of credible alternatives makes this a decade-long trend. A partial "contagion" is evident as ...
Annunziata Says ECB Had to Buy Bonds to Stop Contagion
Washington Post
Aug. 8 (Bloomberg) -- Marco Annunziata, chief economist at General Electric Co., talks about the European Central Bank's decision to purchase Italian and Spanish debt. Annunziata, speaking with Tom Keene on Bloomberg Television's "Surveillance Midday," ..
Stock plunge adds to fund pressure, but Asia holds up
Reuters
So far the strains have been more pronounced in Europe rather than the dollar market, with EURIBOR interbank lending spreads over overnight index swaps having widened to post-financial crisis levels and more banks stashing funds with the European ...
Second financial crisis more likely than ever
Belfast Telegraph
We should fear a downgrade of the US credit rating even more than we fear a US default on its debts. Few doubt there will be significant macro-economic consequences from a downgrade: the US government will have to pay more for long-term debt in the ...
Wall Street has its worst day since the 2008 financial crisis
GlobalPost
All three major US stock indexes sank between 5 percent and 7 percent, making it Wall Street's worst day since the 2008 financial crisis, CNN reports. The Dow Jones industrial average fell 635 points, or 5.6 percent, to 10810. That's its sixth biggest .
JPMorgan, Goldman Sachs Credit Default Swaps Fall After Surge
Bloomberg
5, triggering investor concern that fallout could impair the health of banks that have been recovering from the worst financial crisis since the Great Depression. “While we appreciate the uncertainty regarding the economy, confidence, mortgage putbacks ...
Repeat of 1997, This Time It Is The West
Wall Street Journal
This recent stock market decline can now be compared to the 1997 Asian Financial Crisis also called the Asian Contagion. This time around it is the European Union collapse that is the leading catalyst for the declines in the stock market. ...
Western racism in the IMF and the World Bank
Pravda
By Peter Baofu, Ph.D. The extensive Western mainstream media coverage of the arrest of Dominique Strauss-Kahn, the head of the International Monetary Fund (IMF), in May of 2011 with charges of sexual assault, and his replacement by Christine Lagarde, ...
German Banks Steady Despite Euro Zone Crisis: Analyst
CNBC.com
The German banking sector should be able to withstand stresses resulting from exposure to peripheral Europe, with the possible exception of Commerzbank, which has a high level of PIIGSexposure, according to Michael Rohr, head of financials at Silvia ...
Watching for Contagion: The Preferred Stocks Most at Risk
Seeking Alpha
This could certainly change, so monitoring the price performance of financial preferred stocks such as those shown here is worthwhile to determine whether we see a shift in trend or if contagioneffects are spreading across the Atlantic. ...
Recession 2011: Double dip financial crisis all over again?
CoolAvenues
The impact on the US 4 trillion dollar repurchase ( repo) markets also been limited so far since the opening on Monday the 8th of August 2011. On relative terms US economy still looks like the better looking rubbish in a pile of rubbish. ...
Norway's Krone Weakens on Concern Turmoil Could Delay Rate Hike Tomorrow
Bloomberg
The krone declined versus 13 of 16 major peers tracked by Bloomberg as investors speculated that the euro area's fiscal crisis could prompt policy makers to delay a planned interest rate increase. Central bankers in the second-largest Nordic economy ...
National debt is tip of the iceberg
BurlingtonFreePress.com
In July 2010, the International Monetary Fund (IMF) released its annual review of US economic policy. Section 6 of the July 2010 Selected Issues Paper stated this: "The US fiscal gap associated with today's federal fiscal policy is huge for plausible ...
Asia to keep buying US debt despite downgrade
The Associated Press
Asian holdings, especially China's, soared over the past decade as trade boomed and central banks amassed reserves to cushion against shocks such as a repeat of the 1997 Asian financial crisis. Beijing became Washington's biggest foreign creditor with...
Burma Seeks IMF Help to Modernize Currency Exchange System
Voice of America (blog)
Burma maintains an official exchange rate of 6 kyats to the US dollar, compared to rates ranging around 800 to one on public markets. The country also has other rates for specific types of transactions. The proposed exchange rate reorganization would ...
Euro dollar exchange rate expected to be sold on rallies
Euro Exchange Rate News
Euro upside was limited despite the ECB's pledge to buy bonds in the secondary market in order to ease the risk of contagion. The euro dollar exchange rate is 0.134% higher with 1 EUR = 1.4207 USD at 9 AM in London. The euro pound exchange rate is ...
While the Markets Swoon ...
New York Times
... subprime junk was the foundation upon which the entire financial crisis was built. And now, to show that it's got some spine, S.& P. decided to downgrade the United States? From a purely economic standpoint, the likelihood of a US default is nil. ...
Pennsylvania's Muni Oversight Law Falls Short as Workers Doubt Paychecks
Bloomberg
The fiscal crisis underscores the shortcomings of Pennsylvania's municipal-oversight law, even as states including Rhode Island and Michigan have strengthened theirs. Pennsylvania's aid program was established in 1987 after local tax revenue collapsed ...

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