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

Friday, August 19, 2011

Interbank Market Vulnerable to Collapse, Sweden's Frisell Says


Interbank Market Vulnerable to Collapse, Sweden's Frisell Says
Bloomberg
Swedish policy makers have been pressing for the nation's lenders to seek more permanent, longer-term funding after the financial crisis in 2008. Following the collapse of Lehman Brothers Holdings Inc., Sweden's central bank provided liquidity peaking ...
Hidden Money From Hong Kong Undermining Loan Curbs: China Credit
San Francisco Chronicle
... compared with 3.6 percent in the US and 2.5 percent in the euro region. While All-China Federation of Industry & Commerce said in June that smaller businesses are more short on cash than during the 2008 financial crisis, companies that have access ...
Gold hits record, macro worries batter risk assets
Reuters
LONDON Aug 18 (Reuters) - Gold hit its second record high this month on Thursday, as worry about the effect on global growth of a debt-laden US economy and the euro zone financial crisis battered stocks and higher-yielding currencies and lifted ...
Global Markets Taking It On The Chin, Gold Hits New High, Treasuries Below 2%
Forbes
The latest global sell-off follows some of the worst days for equities since the financial crisis in 2008. European stocks tumbled as market players digested a summit between France's Nicolas Sarkozy and Germany's Angela Merkel that did nothing more ...
4 Mass. banks get $18m from US
Boston Globe
As with the Troubled Asset Relief Program, or TARP, which bailed out banks during the financial crisis, the government is buying preferred stock in the banks in exchange for the capital infusion. The program is controversial because many of the banks ...
Finland to Lower Spending, Raise Taxes to Narrow Budget Deficit
Bloomberg
The government needs to ensure a potentially deepening global economic and fiscal crisis doesn't trigger an economic decline similar to Finland's 8.2 percent contraction in 2009. Finland expects to have 88 billion euros in debt by the end of next year, ...
Analysis: Brazil's economy goes from "great" to "good"
Reuters
That would be quite a letdown for a country that enjoyed average annual economic growth of 4.4 percent from 2004 to 2010, even when accounting for the global financial crisis that erupted during that period. Growth peaked at 7.5 percent last year, .
Sticking With Equities Through Downturn Brought Gains To 401(k) Investors
Financial Advisor Magazine
Investors who have stayed out of equities since the financial crisis have made far less money than those who returned to equities, according to a Fidelity Investments report released today. Fidelity's review of 2nd quarter 401(k) trends asserts that ...
Fear Factors: 5 Drivers of Today's Stock Market Decline
TIME
Traders are already pointing to some larger, macroeconomic issues, like contagion from the ailingeuro zone and fear of a “false” market rally — that is, concern that the recent mini-rallies have been mere pauses before even greater losses. ...
Bank of America Names Executive to Oversee Bad Loan Portfolio
New York Times
Bank of America picked up much of the portfolio in 2008 when it acquired Countrywide Financial, the subprime lender whose excesses have come to epitomize the housing boom that collapsed and helped trigger the financial crisis of 2008. ...
Cash-strapped UC hands out millions in raises
San Francisco Chronicle
UC is experiencing what officials have called the worst financial crisis in its history, losing million of dollars in state funding over the last few years while steadily raising tuition and laying off employees to compensate. ...
Fed scrutiny of European banks fuel US dollar funding fears ...
By Google Inc.
NEW YORK (Reuters) - Some European banks are being forced to pay more for access to short-term US dollar loans as fresh fears surfaced over the euro zone fiscal crisis spreading through the financial sector. The latest wave of anxiety . ...
Wall Street Financial News
The coming depression in pictures – Telegraph Blogs
By Jeremy Warner
But with the advent of the financial crisis, the relationship has started to show severe signs of strain. use-this---2yr. Some time in mid 2011, the relationship unambiguously reversed (see second graphic above). When shares are cheap relative to bonds, ... Bonds, by contrast, become the default savings security of choice. Money that would normally be spent or invested in productive assets gets instead squirrelled away in cash and its nearest equivalent, government bonds . ...
Finance
Business - WSJ.com: Dollar Rallies as Growth, Contagion Concern…
Dollar Rallies as Growth, Contagion Concern Spur Treasury Demand. (Posted on BusinessWeek.com -- Top News at Thu, Aug 18, 2011 at 02:47PM) ...
onespot.wsj.com/business/.../dollar-rallies-as-growth-contagion

Dollar Climbs as Growth, Contagion Concern Fuel US Debt Demand
BusinessWeek
18 (Bloomberg) -- The dollar gained the most in two weeks versus a basket of currencies of six major US trade partners as stocks plunged on concern the global economy is slowing and speculation European banks lack sufficient capital. ...
Krugman Says Italy, Spain Can 'Probably' Survive Euro Zone's Fiscal Crisis
Bloomberg
By Johan Carlstrom - Thu Aug 18 15:48:29 GMT 2011 Italy and Spain are at an increased risk of exiting the euro as European leaders grapple with how to contain the region's sovereign debt crisis, Nobel economics laureate Paul Krugman said. ...
FTSE makes worst one-day fall since March 2009
Reuters
By Joanne Frearson LONDON, Aug 18 (Reuters) - Britain's top shares dropped on Thursday in their worst one-day fall since March 2009, led by banks on concern the growth outlook for global economies was slowing and worries about contagion in the euro ...
In Past Financial Crisis, Fewer Pursued In Courts
NPR
Audio for this story from All Things Considered will be available at approx. 7:00 pm ET News of the investigation of Standard and Poor's is remarkable because the financial mess of 2008 has resulted in so few prosecutions or civil suits compared to ...
A Third Solution for Europe Will Stabilize Markets
Seeking Alpha
As it is believed that restructuring is tantamount to default, stock markets plunged out of concern for potential losses in the banking sector. PIIGS sovereign debt yields have increased substantially in recent months, as the risk of default has ...
Hamas denies financial crisis as it fails to pay employees' salaries
gulfnews.com
Although the Islamic government's financial situation isn't much different from the one in the West Bank in not paying their employees their salaries, they are still in denial of any financial crisis. Dr Ismail Mahfooz, the deputy minister at the ...
Is This Lehman All Over Again? No, But It Sure Feels Like It
CNBC.com
... a European bank borrowed $500 million from the European Central Bank, a disturbing signal that some institution somewhere was struggling to maintain adequate capital and fueling fears ofcontagion from the Euro zone's debt crisis [cnbc explains] . ...
Nasdaq Plunges 5%, HP Bids $10 Billion for Autonomy
123Jump.com
3:30 PM New York – The US indexes dropped sharply on the growing economic uncertainties, rising inflation and the euro-zone leaders' inability to stem the widening debt contagion. The tech heavy Nasdaq declined more than 5%. ...
Contempt or Cooperation--Prospects for US-China Economic Relations
American Enterprise Institute
By Philip I. Levy | China-US Focus Since the onset of global financial crisis in 2008, there have been civil, plodding, and ineffectual efforts to rebalance the global economy. These talks have involved many of the world's major economies, ...
Americans Facing More Inequality, More Debt and Now More Trouble?
PBS NewsHour
Did America's record-high level of economic inequality in 2007 help cause the financial crisis of 2008? With Americans' borrowing back on the rise and signs that economic inequality is growing, could there be another financial crisis in the near future ...
Does the US economy need more Big Digs?
CNN (blog)
Ken Rogoff: Well, recessions we have periodically since World War II, but we haven't really had afinancial crisis as we're having now. And Carmen Reinhart and I think of this as a great contraction, the second one, the first being the Great Depression ...
Czech Koruna May Be Next Franc Before Euro QE, Record Plc Says
Bloomberg
The Swiss franc soared more than 23 percent from its April low this year against the euro to a record 1.00749 per euro on Aug. 9 as debt-crisis contagion spread to Italy and Spain. It also set a dollarrecord as Standard & Poor's downgraded the US The ...
TREASURIES-Bonds rally as economy, eurozone fears spur bid
Reuters
Fear that the euro zone fiscal crisis was having an impact on its financial sector also fed the safe-haven bid a day after an unidentified euro zone bank borrowed $500 million in one-week dollars from the European Central Bank. ...
Euro crisis plan gets cool reaction
Irish Times
Photograph: Fabrice Dimier/Bloomberg The latest Franco-German proposals to address the EU's financial crisis generated a cool response yesterday, amid doubts the package would find favour with member states. Minister for Finance Michael Noonan said the ...
Greek PM convenes ministers ahead of international debt inspectors visit
Washington Post
Greece has been gripped by a severe financial crisis since late 2009, and has relied on funds from a €110 billion bailout from EU countries and the IMF since last May. Last month, European leaders agreed on a second bailout worth €109 billion. ...
Euro-Banks Worry Fed and Investors
Wyatt Investment Research
This is reminiscent of the financial crisis because there are liquidity problems at banks, and we don't know how deep they run. Plus, given that European leaders have been consistently behind the curve in dealing with debt problems, ...
Sell-off highlights Asia's misplaced optimism
Financial Times
There are not the massive mismatches of say big foreign currency borrowing against far smaller local currency revenues that were a feature of the Asian financial crisis. And, most importantly, in contrast to the rest of the world where wages and income ...
EMERGING MARKETS-Latam stocks dive on global bank, growth fears
Reuters
... credit crunch similar to the financial crisis of 2008. Further hitting sentiment, Morgan Stanley slashed its global growth forecasts for this year and next and warned that the United States and theeuro zone were "dangerously close to a recession. ...
Is Gold the Only 'Safe-Haven' Investment Left?
CNBC.com
And this second financial crisis is more global in nature, with fears of rising costs to bail out faltering Euro members playing an equal, if not bigger, role than US troubles in the fear. A global currency crisis plays right into hands of the only ...
Wall Street Drenched in Red Ink: Nasdaq Crumbles 5.2% Amid Euro, Economic Tension
Fox Business
Companies are firing at the slowest pace since the financial crisis in 2008, but hiring still remains too slow to "put a real dent in the unemployment rate," according to Peter Boockvar, managing director at Miller Tabak + Co. Prices at at the consumer ...
S&P on the hot seat after US credit downgrade
CBS News
In fact, the New York Times reported on Wednesday night that the Justice Department is investigating whether S&P improperly rated mortgage securities in the years leading up to the financial crisis. Perversely, some charge that S&P's decision to lower ...
Standard and Poor's: Downgrade Backlash?
ABC News
(Stan Honda/AFP/Getty Images) The Justice Department is reportedly investigating whether S&P improperly rated dozens of mortgage securities before the financial crisis, and the city of Los Angeles has withdrawn its S&P contract to rate its $7 billion...
Chart of the Week
Gold Seek
It is more likely that the financial crisis will have to reach an even more critical stage to see the monetary authorities contemplate a return to a gold standard even a partial gold standard. Fiat currencies have all eventually collapsed. ...
LG Elec cuts TV sales target by 20 percent: report
Reuters
"TV sales are seen sharply below our original target and may come in at around 32 million units this year, as the euro zone fiscal crisis is likely to continue and a US consumption recovery also remains uncertain," online news outlet eDaily quoted an ...
A clearer approach will solve the continuing US financial crisis
The State Press
A United States default would have been unprecedented, as Treasury Secretary Timothy Geithner warned. Though each party drew a hard line on negotiations, members of Congress must be responsible and realistic: the country was going to default on its ...

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