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

Friday, August 5, 2011

IMF weighs risk of aid for Spain and Italy

IMF weighs risk of aid for Spain and Italy
Financial Times
If the fund were to maintain the one-third share of financing it provided in the joint EU-IMF bail-outs for Ireland and Portugal, Spain would be a stretch and Italy out of the question for its limited resources. But with the eurozone desperate for the ...
IMF's Lagarde to be probed over 407 million dollar payout
Monsters and Critics.com
The ruling, by a panel of seven judges, came a day before Lagarde's IMF leadership hits the one-month mark. It concerns a 285-million-euro (407-million-dollar) payout by the state to Tapie in 2008. Tapie, a former Socialist minister, ..
Greece Must Consolidate Budget to Calm Euro Area, Roesler Says
San Francisco Chronicle
At the same time, Roesler held out the prospect of greater "flexibility" for the European Financial Stability Facility and its successor from mid-2013, the European Stability Mechanism, to haltcontagion. "If there was to be a selective default in ...
Readers react: living through the Greek financial crisis
The Guardian
Even in the event of default, banks will not go bust as they'll be recapitalised by the European Central Bank and the Bank of Greece. No political party advocates going back to the drachma and at the moment there is no such movement. ...
BASE METALS: Copper At 4-Week Low On Growth, Contagion Worries
Wall Street Journal
While US lawmakers have avoided a government debt default there are lingering fears economic growth will slow even further if America loses its AAA credit rating. "Copper as a market is at the mercy of equities, it's losing sentiment on the global ...
Bank of Scotland at centre of financial crisis inquiry
The Guardian
Enforcement proceedings have been started against Bank of Scotland's corporate division which could result in fines or other penalties. Photograph: Murdo Macleod Lloyds Banking Group has revealed an investigation being conducted by the Financial...
Only the ECB can halt eurozone contagion
Financial Times
By Paul De Grauwe The forces of contagion in the eurozone appear unstoppable. On Thursday investors drove yields on both Italian and Spanish debt to new highs, as fears grew that last month's Greek rescue deal would prove insufficient to stop Europe's ...
Fannie, Freddie Role in the Financial Crisis: Phil Angelides
Bloomberg
By Phil Angelides Thu Aug 04 00:00:00 GMT 2011 Comments In the six months since the Financial Crisis Inquiry Commission's report was released, a small band of critics -- with many Congressional Republicans in tow -- has labored mightily to undermine ...
RPT-GLOBAL MARKETS-Stocks sink in global sell-off, bonds rally
Reuters
European stocks tumbled to a level not seen since after the financial crisis in mid-2009, with Italy's equity market firmly in bear market territory, down nearly 30 percent since February, as investors fretted the euro-zone debt crisis was spreading. ...
RBI's 2009 gold bet adds sheen to india's reserves
Business Standard
However, RBI saw a near 50 per cent appreciation on its investment of $6.7 billion to buy gold from the IMF just 21 months ago. The gains are calculated considering the currency fluctuation. The rupee was trading at around 47 against a dollar in ...
Chile Stocks Drop 2.1% On US Growth, Euro-Zone Debt Worries
Wall Street Journal
SANTIAGO (Dow Jones)--Chilean stocks steepened their losses Thursday morning, with the blue-chip Ipsa index down 2.1%, on the back of mounting fears surrounding weak US economic data andeuro-zone debt contagion. The Ipsa was recently down to 4223.66 ...
Credit Safest Since '08 as Clearinghouses Control Swaps
BusinessWeek
4 (Bloomberg) -- Credit markets, which inflicted more than $2 trillion of losses and writedowns on the world's biggest financial institutions from 2007 through 2009, are now seen as the safest since before the financial crisis...
The wobbly West
Times of Oman
The eurozone sovereign-debt crisis appears to have been the worst-managed financial crisis since Argentina's default in 2001. The European Union and eurozone leaders have seriously discredited themselves. Europe requires institutional changes that are ...
EU Intervention Is Warranted
TheStreet.com
By BBH FX Strategy 08/03/11 - 09:32 PM EDT NEW YORK (BBH FX Strategy) -- The growingcontagion in the euro area is threatening stability in core countries, such as Italy and Spain, France and Belgium (and Germany!). CDS spreads are reaching new highs ...
Shaw lashes PNP's 'win-at-all-cost lust for power'
Jamaica Observer
"The Opposition is trying to cause investors to lose confidence in Jamaica by whipping up a frenzy about failed IMF (International Monetary Fund) tests." Answering his rhetorical question, Shaw suggested the party was recently embarrassed by one of its ...
Jefferson County meeting to discuss bankruptcy, financial crisis begins
al.com (blog)
4, 2011, before commissioners convene to discuss the county's financial crisis. (Frank Couch/The Birmingham News) Jefferson County Commissioners have begun to arrive at a meeting where they will discuss what to do as the county teeters on the brink of ...
The IMF's Bizarre Love of Iran
The Atlantic Wire
On Thursday, though, the Wall Street Journal examines the IMF's "rosy" report on Wednesday that the Iranian economy grew by 3.2 percent this year on the strength of greater agriculture production and higher oil prices. The IMF praises Iran for cutting ...
Italy's debt pile under scrutiny
BBC News
In 2012, the IMF reckons that Italy will need to raise an amount equivalent to 20% of GDP simply to refinance the debt that is coming due. That's even more than Greece, and higher than 2011, even though next year's deficit will be lower. ...
Dexia Q2 loss widens to 4 bln eur after Greece hit
Reuters
Dexia, itself bailed out during the financial crisis, is stepping up efforts to shed toxic US assets and bonds. The bank had warned in May it would take a 3.6 billion euro hit from such restructuring moves in the quarter. ...
Dollar Index Pushes to Session Highs
Briefing.com
COM] The dollar index is at its best levels of the session near 75.10 as today's flight to safety has provided a bid in the greenback. The euro has been knocked down by more than 220 pips to its current 1.4140 as contagion fears spook investors. ...
UniCredit warns of eurozone contagion
Financial Times
This partly ringfences it from sovereign volatility that has seen spreads on Italian bonds reachingeuro-era highs against German treasuries. Intesa Sanpaolo, Italy's largest retail bank which is reporting quarterly figures on Friday, told the FT last ...
France and Germany: One More Bailout Away From Fiscal Crisis
Seeking Alpha
As if the tar-pit reality of dealing with Greece, Portugal and Ireland was not enough, these pseudo-stronger euro nations and their pseudo-solutions will next be challenged with assisting in buying overpriced Italian debt. Round one of the Troika's ...
German Factory Orders Unexpectedly Rise
Bloomberg
Photographer: Guenter Schiffmann/Bloomberg German exporters have relied on faster-growing markets as governments across the 17-member euro region cut spending to plug budget gaps to fight a worsening fiscal crisis. German exporters have relied on ...
The Fed can't (and shouldn't) save the day
CNNMoney
The European Central Bank kept rates unchanged Thursday -- at a still low 1.5% -- and also pledged to buy more euro zone debt. That's an attempt to stop the bleeding in Italy, Spain and the other PIIGS. Cucchiaro added that the Fed is still reinvesting ...
The reason the markets are diving
Washington Post (blog)
Meanwhile, Washington just spent two months arguing over whether it would pay its bills or spark an unnecessary financial crisis. Last week, Congress resolved that question. This week, the markets are tanking. Which suggests that Washington is asking ...
Axa First-Half Net Income Quadruples on Gains From Asset Sales
Bloomberg
... largest bank by assets and owner of a 5.2 percent stake in Axa, took a 534 million-euroimpairment in the fourth quarter of 2010 on its holding because the insurer's stock had often traded below book value since the start of the financial crisis...
Arrigato Gozaimasu
Resource Investor
The yields, on the other hand, appear “indecent” but, hey, what a (certain PIIGS) country to do if it wants to sell that paper? Pay up, that's what. Finally, let's look over to the US Fed and to the US economy. Of late, this requires a dose of averted ...
Wall Street's Thursday Lunch Options
Optionetics
Separately, spreading credit contagion fears out of Europe centered on Debt PIIGS constituent Italy has forced ECB Prez' Trichet to try and calm investors by announcing an increase in liquidity in its regional credit markets. ...
Even after default scare, US Treasuries remain safest
Reuters
The long bond's rally over the past four sessions produced a total return of 6.3 percent, its best such streak since the trailing days of the financial crisis in December 2008. For the benchmark 10-year note, the total return for the four days through ...
Tax Reform and Consumption-Based Tax Systems
EconoMonitor
Ireland, the third euro area country that currently has an IMF program, is a different kind of fiscal disaster. In this case, the on–balance sheet government debt was low (25 percent of GDP in 2006–07 for gross debt), but there was a big buildup in ...
Stocks plunge as economic, Europe worries continue
Houston Chronicle
That means that investors who buy now are paying less for each dollar in profits. General Motors Co. fell 4 percent despite beating analyst estimates. CVS Caremark fell nearly 4 percent after its revenue slipped last quarter. ...

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