The Underlying European Oil Contagion
Rather than appearing as a straight oil transaction, these deals are structured more as credit defaultswaps. I will save you the trouble of sitting through a course lecture at this point. It is enough to say that such swaps are designed to meet the ...
EU Morning Report- Euro falls on heightened eurozone debt contagion fears
IBTimes Hong Kong
The US dollar advanced against its major counterparts as risk appetite in the market plummeted and world equities turned negative. Disappointing US data spurred growing concerns about the global economic growth sending gold prices to a fresh record ...
Why Europe Debt Crisis Won't Be Over Until Greece Defaults
The extent of contagion from allowing a default, though, is an unknown, making employing a solution elusive. One estimate is that the ECB has a 444 billion-euro ($634 billion) total exposure to the peripheral PIIGS—Portugal, Italy, Ireland, ...
Are We Approaching the EndGame for the Euro?
Wall Street Pit
No, the problem is the Euro and it is a shared problem across the Euro zone. And this is what is beginning to dawn on the markets, as the contagion spreads from the periphery into the core. The red line refers to Germany's leading economic indicators ...
Euro-Style Anxiety Spreads
New York Times
Regulators, bank executives and others continued to play down the risks on Thursday, emphasizing that this would not be a repeat of the 2008 financial crisis. In Europe, political leaders have vowed to prevent a Lehman-like collapse of a major bank, ...
Some In France Want To Say Au Revoir To The Euro
How the French are reacting to concerns about the financial crisis and the future of the Euro? France is the latest country to get swept up in the European debt crisis. There are rumors the country could lose its triple A credit rating. ...
Obama's Policies Tie US to Euro Crisis
Our options are limited in preventing the European contagion.” But Europe's woes should not be an excuse. If anything, they present an opportunity for the US to capture the capital that is fleeing there, which would fuel job and business growth on our ...
Glass half-full or empty, we'll all need a drink
Sydney Morning Herald
Depending who you speak to, this is either a mere blip in the radar or we're going to lurch into a deeper and darker financial crisis than we saw about three years ago. This divergence in opinion was stark in the outlook commentary of chief executives ...
William Urban: Euro Zone part 2
The Euro crisis was somewhat different, in that the economic situation of the PIIGS was more like that of American states than of the federal government; states can't print money — they have to cover deficits by borrowing. The analogy is not perfect, ...
Euro Threat and Bernanke to Test Markets in the Coming Week
German and French leaders have been reluctant to pursue a comprehensive strategy to address a potential debt contagion in the eurozone, instead choosing incremental actions to try to stave off a doomsday scenario that would bring down an entire banking ...
Through the Looking Glass
By Edmund L. Andrews Almost exactly three years ago, American banks kicked off a worldwidefinancial crisis. Today, European banks are now threatening to do something similar. Credit markets are once again tightening up dramatically. ...
Financial crisis delays SC road paving
DOT officials revealed their plan to delay some projects during a commission meeting Thursday that also nearly derailed plans for a $2.4 billion freeway to Myrtle Beach because of the fiscal crisis. Robert St. Onge, the state's transportation secretary ...
Seoul shares fall 6.2 pct, worst loss since 2008 crisis
... Seoul shares fell for a second day on Friday, posting their worst daily percentage loss since the global financial crisis in late 2008, as fears grew over a possible US recession and the lack of a breakthrough in the euro zone fiscal crisis. ...
Fear misery on Indian PSU banks bizarre says PN Vijay
European lenders faced some short-term lending stress, forcing some European banks to pay higher rates for US dollar loans. This must have brought about memories of the 2008 global crisis, says portfolio manager PN Vijay. In an interview on CNBC-TV18, ..
Simon Johnson: Powerful rich more harmful to US than ratings downgrade
New Zealand Herald
By Simon Johnson Even after a one-level downgrade from Standard & Poor's the US dollar is still the world's first choice of reserve currency. Photo / AP The US has a fiscal crisis, but not the one that everyone is talking about. ...
BofA layoffs are the latest as an industry shrinks
The banks emphasize that they have bigger capital cushions and lower default rates than they did when they entered the financial crisis. What investors worry about is the banks' exposure to continued problems over soured mortgages and mortgage-backed ...
Treasury 30-Year Bond Yields Have Biggest Weekly Drop Since 2008
19 (Bloomberg) -- Treasury 30-year bond yields had their biggest weekly drop since the depths of thefinancial crisis in December 2008 on concern the US economic recovery is stalling and Europe's sovereign-debt crisis is getting worse. ...
Reported Standard & Poor's Investigation Lends Credence To Senate Financial ...
S&P and its competitor Moody's Investors Service provided "the most immediate trigger" to thefinancial crisis, said an April report from a Senate panel. News of this investigation is welcome, said Sen. Carl Levin, who chairs the Senate Permanent ...
GLOBAL MARKETS-Gold sets record high, global stocks slip further
... more-so than an economic crisis or financial crisis necessarily at this stage," said Natalie Trunow, chief investment officer of equities at Calvert Investment Management in Bethesda, Maryland, which manages about $14.8 billion. The dollar fell as ..
US Indexes in Weekly Loss of 5%; HP Plunges 20%
The US and European indexes extended losses with banks facing another round of sovereign bonds losses as the euro-zone debt contagion spreads to Italy and France. Hewlett-Packard plunged 20% on expensive acquisition and weak outlook. ...
Ground hog day
The actual report from the Wall Street Journal stated that the US Federal Reserve has been examining in closer detail the European banks over worries about their short-term funding due tocontagion fears from the euro zone debt crisis. ...
Euro Zone Needs More than Kaffeeklatsch, Poland Says
Wall Street Journal (blog)
Mr. Tusk didn't say Friday when his country would adopt the euro as its currency. In 2008, he set 2012 as the adoption target, but Poland abandoned it during the financial crisis without setting a new one. Poland is neutral on a new financial tax the ...
Banks saving with ECB rather than lending
And while the ECB is taking the situation seriously, it is not as dramatic as the financial crisis in 2008, according to economist Juergen Stark, who is also on the board of the bank. “Banks in certain regions of the euro zone prefer to deposit their ...
Come together: is the world turning centripetal?
Foreign Policy (blog)
The IMF received billions of dollars in the wake of the 2008 financial crisis and now occupies a place in international deliberations that its leaders could only have dreamed of in 2006. Leading voices are arguing that IMF instruments could serve as a ...
Fed needs to bring out its big guns at Jackson Hole
Mr Bernanke last month laid out three options: changing the Fed's language to be more explicit, as he has now done; buying more securities to add to the $2700bn already on the Fed balance sheet (from $790bn before the financial crisis); and exchanging ...
Does the West need a new growth model?
As shown by yet another global stock selloff, investors have finally woken to the reality that we have not yet recovered from the 2008 financial crisis. Many smart economists had been warning that this time was different, that we wouldn't enjoy that ...
BofA plans to cut 3500 jobs; 'Those days are gone' when jobs were easy to come by
Then, big banks were reaping outsized profits from large bets on risky trading and complicated investments that eventually backfired, fueling the financial crisis that scorched them and the global economy in 2008. The cuts confirmed Friday by Bank of ...
Central Bank Policy, Euro Bonds, And QE3
The ECB and the Hidden Cost of Saving the Euro,” http://www.openeurope.org.uk/research/ecbandtheeuro.pdf) estimates that the ECB's net loss exposure to Greece alone is between €44.5 billion and €65.8 billion, and its exposure to the PIIGS is about €444 ...
Troubled UK faces debt 'triple whammy'
... the largest monthly rise since May 2009 and new jobs were down by 22000 when compared with May this year, the lowest number since November 2009, when British recovery efforts were still in an early stage after the 2008 financial crisis. ...
Hedge Funds Most Bearish Since July 2009 After Global Equities Retreat 15%
The measure sank to 6.5 in September 2008 after Lehman Brothers Holdings Inc.'s bankruptcy spurred the worst financial crisis since the 1930s. “Hedge funds are bringing down their bullish investments,” Chris Baggini, who manages the long-short Turner ...
So What's the Smart Money Up To?
The value of their purchases is 15% higher than the aggressive volume of insider buying in March 2009, the month the stock market bottomed following the financial crisis. The number of buyers is 20% below that of March 2009. Another class of insiders ...
Does Three Crashes Mean a Second Credit Crisis?
Financial crisis behavior was also evident in the US Treasury markets (NYSEArca: EDV). The yield on the 10-year fell (NYSEArca: IEF) as low as 1.9872 on Thursday, taking out the low from 2008. The two-year Treasury (NYSEArca: SHY) has been hitting a ...
That recalls the financial crisis in 2008, when the short-term credit market froze because banks refused to lend to one another. Eventually companies and consumers weren't able to get loans. A number of European banks are already dependent on ...
Stocks are on sale — just not this one
Principal was one of the bigger dogs of the financial crisis of 2008, going from high flyer to the edge of bankruptcy seemingly overnight. For the year, the stock lost two-thirds of its value. That trauma is part of what makes the stock somewhat ...
Swedish Bank Liquidity Situation Is 'Very Good'
There's no “primary risk” in the Swedish financial system, such as the difficulties the industry had with loan losses in the Baltics during the financial crisis, he said. Borg and other policy makers such as central bank Governor Stefan Ingves have ...
Dollar, Yen Gain on Slowing Growth, European Contagion Concern
San Francisco Chronicle
19 (Bloomberg) -- The dollar, yen and Swiss franc advanced against most of their major counterparts as stocks extended a worldwide rout amid speculation European banks lack sufficient capital, boosting demand for safer assets. ...