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

Thursday, August 11, 2011

Market Distress Over European Contagion


Englander Sees Market `Distress' Over European Contagion: Video
Washington Post
Aug. 10 (Bloomberg) -- Steven Englander, head of Group of 10 currency strategy at Citigroup Inc., talks about the performance of European banks and the currency market's reaction to Standard & Poor's stable outlook for France's sovereign debt. ...
In US Stress Tests, a Tool to Gauge Contagion in Europe
New York Times (blog)
And banks wouldn't take 100 percent losses on their investments in the event of a default. Unfortunately, we simply don't know whether the analysts are right. Neither the Fed nor the Securities and Exchange Commission has forced United States banks to ...
US Economy: No Repeat of 2008 Financial Crisis, But Still Vulnerable To Shock
Huffington Post
Even as the stock market has gyrated wildly in recent days, bringing inevitable comparisons to thefinancial crisis of 2008, economists say a repeat of that episode is unlikely: Bank balance sheets are much stronger this time, the upside of a recent ..
European Stocks Enter Bear Market As August Losses Exceed Twenty Percent
TheStreet.com
Contagion risks in Italy and Spain, and now France, have only been heightend since the Greece bailout. Already battling a long list of 'domestic' and global issues, the Euro-zone was hit with another blow on Wednesday, as concerns arose that French ...
GLOBAL MARKETS-World shares retreat as investors shun risk
Reuters
The euro dropped more than 1 percent against the dollar. "Memories are fresh. I think people who during the last financial crisis did not sell right away, next time around are ready to sell quick and ask questions later," said Ed Crotty, ...
What lies behind the new international financial crisis?
China Daily
The mechanisms by which this occurred were the indirect consequences of the financial crisis, with recession increasing welfare payments and reducing tax receipts as well as transfer of funds to the private sector in bank bailouts and similar measures. ..
Speaking of Debt...
msnbc.com
... an equally high risk of default. Now that our economic outlook is clearly deteriorating, investors are finally fleeing junk. But their previous willingness to speculate on such dicey bets shows that many never learned from the financial crisis...
SCOREBOARD: French fright
Business Spectator
There was a big downdraft and flight to defensives in the morning as another round of contagion fear swept through Europe. This time the concern was over how France and Germany (remember the DAX has been lagging lately) may perform if they get stuck ...
Pound reverses fall vs euro but euro zone, UK concerns weigh
Reuters UK
By Nia Williams LONDON, Aug 10 (Reuters) - Sterling pulled back from a one-month low against theeuro on Wednesday as euro debt problems and contagion risks dogged the single currency, but it lost ground against the dollar after the Bank of England cut ...
Can Washington handle 'too big to fail'?
CNN
Experts on the frontline of the 2008 financial crisis say they don't believe regulators are truly prepared. "It's hard to imagine the agencies are ready for prime time in actually doing this," said Phil Swagel, a University of Maryland professor who ...
ECB Buys Bonds, Not Necessarily Time
Wall Street Journal
The differences, however, are clear: the Fed flooded $600 billion into the system to stimulate the economy; the ECB is buying bonds to ward off contagion in the 17-nation currency bloc's largest economies. All the more problematic is the fact that the ..
Q&A: Michael Lewis on the Future of Europe's Economy
Vanity Fair
When VF Daily caught up with Europe's least-welcome tourist to ask his opinion of Germany and the PIGS (Portugal, Italy, Greece, and Spain), the contagion in Europe had yet to spread—highlights from our chat: VF Daily: Where did the euro go wrong?...
Euro Tumbles As Europe Debt Fears, Risk-Off Dominate
Wall Street Journal
As fears about the global economy converged with concerns over Europe, the euro followed most risk-sensitive assets lower. It fell as low as $1.4171, down 1.4% on the session. A sell-off in French banks heightened speculation that contagion may yet ...
Britain's riots and the new financial crisis
Eureka Street
Throughout the rest of the world, stock markets are tumbling at a rate not seen since the 2008 globalfinancial crisis. Are these two phenomena related? If so, what might their relationship say about where we are and where we are headed? ...
Blue Dogs call for an end to August recess in order to address fiscal crisis
The Hill
S&P specifically went after Republicans for using the debt limit and the threat of default as "political bargaining chips in the debate over fiscal policy." Another factor, S&P analysts said, was their new assumption that Congress won't allow the ...
GLOBAL MARKETS: European Stocks Up In Volatile Relief Rally
Wall Street Journal
... trading higher in a volatile relief rally Wednesday, as investors weighed up the prospect of continued low interest rates in the US against a weak growth outlook for the world's largest economy and ongoing concerns about a euro-zone debt contagion...
Beijing Downgrades US-Treasury to A+ - Is Anybody Listening?
Gold Seek
... profitable outlet in production, so it's used for speculation in commodities and currencies, such as the Aussie dollar, which hit a high of $1.100 in July, up sharply from a low of around 60-cents at the depths of the 2008 global financial crisis...
Uruguay Insulated From Global Crisis
International Living News
... light: “I have no doubts we are before the most significant financial crisis capitalism has faced in contemporary history”, Mr. Astori remarked when asked about the ramifications for Uruguay of the stumbling trend in the US dollar and Euro..
MONEY MARKETS-Dlr funding strains remain; ECB injects euro cash
Reuters
"The ECB purchases of Italian and Spanish bonds in the secondary markets and the unlimited fixed price eat-all-you-want (ECB liquidity) buffets will continue until the year end at least seems to have, for the time being, assuaged fears of contagion," ...
The Crack in the Ice
Lew Rockwell
Spain has about a trillion. Italy and Spain are huge debtors. They are not pipsqueak debtors the way Greece is. There is serious money invested in the IOUs of these two PIIGS. The bankers of Europe thought, "No Western nation will ever default...
Dow Takes Another Drubbing From European Debt Crisis
TheStreet.com
The yield dropped to 2.161%, a level close to those reached during the 2008 financial crisis. Thedollar strengthened against a basket of currencies, with the dollar index up by 0.9%. Markets were on firmer footing after appearing unsure in how to ..
Fears of financial crisis redux unfounded
Financial Post
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 ...
Congress less popular than, well, so many things
Washington Post
Even George W. Bush, at his lowest of lows during the 2008 financial crisis, was more popular than the men and women who currently occupy Capitol Hill. Ragging on Congress, with its sluglike reaction times and inspiring displays of public bickering, ...
STXNEWS LATAM-Chile stocks end up on investor buys post-plunge
Reuters
Chile stocks closed sharply firmer as investors bought shares perceived as good value after prices plummeted with global markets in recent sessions on fears of contagion from the euro zone debt crisis and a world economic slowdown. ...
Dow Drops 500 Points, Fears Over Europe And Growth Slam Stocks
Forbes
Right around then a pair of Bear Stearns hedge funds imploded in the first tremors of the financial crisis, but I swear the recession isn't my fault. Armed with only a basic knowledge of Wall Street at the start, after more than a thousand stories I'm ...
Oil and Natural Gas: The Tango Continues
International Business Times
One reason for the continuing large oil/natural gas ratio is the recent social/political change in the Middle East -- the Arab world's reforms -- which have increased concerns about contagion to Saudi Arabia, and/or perhaps Iran, two major oil ...
Global Markets Roiled By Wall Street's Turmoil
Forbes
But just over a year later, Prince Charles was waving goodbye to the former colony, China's flag was hoisted over the city and the Thai baht lost its peg to the dollar sparking the Asian financial crisis. The business school theories I studied in the ..
Wilson: S&P correct in downgrading US debt
The Tand D.com
Borrowing almost half of every dollar it spends, the United States "is in a financial crisis," South Carolina 2nd District Congressman Joe Wilson said Tuesday morning in Orangeburg. "The message is clear," Wilson said. ...
Double-Dip or Great Contraction?
dagblog (blog)
Whereas you normally get out of a recession by lowering interest rates and persuading consumers to spend, the period after a financial crisis is marked by consumers trying to dig out from under a mountain of borrowed money. ...
Latest Updates on the Financial Markets
New York Times (blog)
In an ominous echo of the financial crisis of 2008, he noted that European banks were beginning to hoard cash, crimping the interbank loans that keep the global financial system operating smoothly. While borrowing costs for banks in the United States ...
Commissioner Sandra Little Brown plans forum on Jefferson County financial crisis
al.com (blog)
11, 2011, forum on the county financial crisis. (The Birmingham News/Mark Almond) BIRMINGHAM, Alabama -- Commissioner Sandra Little Brown will hold a public forum on Thursday at Hopewell Baptist Church in southwest Birmingham to discuss the Jefferson ...
Political dysfunction fuels Italy financial crisis
Newsday (subscription)
Click here Political dysfunction fuels Italy financial crisis Originally published: August 10, 2011 5:42 AM Updated: August 10, 2011 9:43 AM By The Associated Press COLLEEN BARRY (AP Business Writers) (AP) -- As international anxiety mounted this...
Reality Frame: Global Economic Downturn: A Crisis of Political Economy
By G. Randy Primm
As we all know, the origin of the current financial crisis was the subprime mortgage meltdown in the United States. To be more precise, it originated in a financial system generating paper assets whose value depended on the price of housing . ... But once a crisis hit, the inability of Greece to devalue its money — which, as the euro, was controlled by the European Central Bank — and the ability of Germany to continue exporting without any ability of Greece to control ...
Reality Frame
MercatorNet: A crisis of political economy
By George Friedman
The global financial crisis is an economic problem that has triggered a political problem, which in turn is making the economic problem worse. ... But once a crisis hit, the inability of Greece to devalue its money — which, as the euro, was controlled by the European Central Bank — and the ability of Germany to continue exporting without any ability of Greece to control those exports exacerbated Greece's recession, leading to a sovereign debt crisis. ...
MercatorNet
Will the PIIGS get slaughtered and the Euro fail?
Portugal, Italy, Ireland, Greece, and Spain (the PIIGS) continue to hemorrhage financially. Germany is playing banker to the Euro and I do not think.
www.warriorforum.com/.../428794-will-piigs-get-slaughtered-...
The specter of a new contagion maddens the euro area | Economics ...
by infomatique The specter of a new contagion maddens the euro zone Posted at 16 :26 Edited 04-08-11 at 18:50 by Le Nouvel Observateur with AFP 1.
economicsnewspaper.com/.../the-specter-of-a-new-contagion-...
The U.S. Fiscal Crisis: Just Like Greece With One Exception, Says ...
The only alternative right now would be the euro, and as we've seen, the Europeans have their ownfiscal crisis," he tells The Daily Ticker's Henry Blodget ...
finance.yahoo.com/.../u-fiscal-crisis-just-greece-one-exception...
Euro struggle Behind Contagion Fears and Rising Yield of Italian ...
The Euro struggles as contagion fears dominate investors. The US dollar falls against safe haven currencies as downgrade become more possible.
www.forexcommune.com/.../euro-struggle-behind-contagion-...
Dollar's Week Starts with a Potential Fiscal Crisis, Ends with NFPs
Dollar's Week Starts with a Potential Fiscal Crisis, Ends with NFPs Euro Docket Heavy with EU Crisis, ECB Decision, Italian GDP on Deck British Pound Will ...
www.alterforex.com/dollars-week-starts-with-a-potential-fiscal...
EU Morning Report- Euro slips on heightened eurozone debt contagion
EU Morning ReportEuro slips on heightened eurozone debt contagion fearsThe US dollar continues to weaken against a basket of currencies as there is still no ...
in.ibtimes.com/.../eu-morning-report-euro-slips-on-heightened...

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