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

Wednesday, September 7, 2011

Fears of eurozone contagion spread

Fears of eurozone contagion spread
Financial Post (blog)
The eurozone's attempts to defend itself against the spread of contagion are showing signs of failure on almost every front, putting a global financial crisis originating in Europe back on the table. Political divisions between the core and the ...
Making Way for the Era of Sovereign Default
Business Insider
But overly indebted entities will default, just as inevitably as flying pigs will hit the pavement. The glide path of Greece's financial condition is obvious. This pig is heading for the pavement, as are all the other PIIGS nations, which is why the ...
Euro Ready to Run with its Reemerging Financial Crisis
FXstreet.com
The European financial crisis is growing more prominent and each day. Now thecontagion seems to have passed the sovereign space and enter the banking level, virtually guaranteeing a full crisis. And yet, EURCHF is holding back from declining. ...
Hard Times Loom as Financial Crisis Ebbs
Gold Seek
As an aside, last week, the latest round of policy response to the credit crisis in real estate by the mortgage bankers (Fannie and Freddie) entered the rumor mill. Would Obama execute an “October Surprise” by offering an $800 billion jubilee to upside ...
A short history of credit default swaps
Telegraph.co.uk
A change in the name of a reference entity can have the consequence of voiding the CDS written against them as many investors found out to their cost during the financial crisis as several major banks collapsed and were rescued.
Greek 'Hard Default' on Debt Obligations Isn't Anticipated, Dallara Says
Bloomberg
Photographer: Angelos Tzortzinis/Bloomberg Greece isn't expected to default on its debt obligations even though there are challenges facing Europe's rescue efforts, said Institute of International Finance managing director Charles Dallara. ...
CEO Of Europe's Most Troubled Bank Quits As Contagion Tsunami Sweeps Over Belgium
Business Insider
In other news, we are happy to announce the expansion of the PIIGS to BIG PIS following the arrival of the latest country to join the sovereign and bank funding crisis. "Stefaan Decraene, the chief executive of Dexia Bank Belgium, leave the company. ...
Greek Euro Exit: 60% Currency Devaluation, Default, Banking Sector Collapse
Forbes
The first major hurdle would be a sovereign default. Secession from the EU would practically require a redenomination of foreign debt in NNC, so as to guarantee some sort of control over the debt. “This would constitute default in the eyes of most ...
Greek T-Bill Auction Completed But Default Fears Stay
Wall Street Journal
By Emese Bartha Of DOW JONES NEWSWIRES The Greek Public Debt Management Agency sold EUR1.3 billion in 26-week T-bills Tuesday, garnering ample demand from domestic buyers despite the country's government bond market signaling near-termdefault fears. ...
Treasury yields plunge as stock markets swoon
The Associated Press
WASHINGTON (AP) — Fears about the weakness in the US economy and Europe's financial crisis caused Treasury prices to rally on Tuesday, sending long-term interest rates lower. Traders dumped stocks in search of lower-risk investments. ...
Emerging-Market Stocks Drop Amid Europe's Debt Contagion Concern
San Francisco Chronicle
Financials retreated, following a slump in Europe as the cost of bank default insurance surged to records. Seoul-based Shinhan Financial Group Co. sank 2.3 percent, while Chinatrust Financial Holding Co. sank 6 percent, the most since November 2009. ...
Mauritius Bank Ownership Concentration Gives Contagion Risk, Bheenick Says
Bloomberg
By Kamlesh Bhuckory - Tue Sep 06 17:20:23 GMT 2011 A concentration of ownership among Mauritius's banks may create a risk of contagion in the industry, said Rundheersing Bheenick, governor of the Bank of Mauritius. Some of the lenders have become “too ...
The Error at the Heart of the Dodd-Frank Act
American Enterprise Institute
By Peter J. Wallison | AEI Financial Services Outlook The underlying assumption of the Dodd-Frank Act (DFA) is that the 2008 financial crisis was caused by the disorderly bankruptcy of Lehman Brothers. This is evident in the statements of officials and ...
Canada wants European action to head off global market contagion: finance ...
Toronto Star
OTTAWA—With the economic picture in Europe darkening, Canada's main concern is that the turmoil on European financial markets be checked before it causes damage globally, a senior federal finance department official says. Despite fears of a double-dip...
Moody's downgrades Malta to A2, negative outlook
Times of Malta
"The key drivers for today's rating action are:1) Lower medium-term economic growth rates, driven by a decline in potential output growth as a result of the 2008-09 financial crisis, thereby leaving the economy more vulnerable to further economic ...
Bernanke Detailed US Bank Exposure to Europe
Wall Street Journal (blog)
By Luca Di Leo The net exposure of US banks to Greece, Ireland and Portugal is “manageable,” but a default of a small European country could hurt by affecting a broad range of markets and financial companies, Federal Reserve Chairman Ben Bernanke ...
Yields Drop as Growth Seen Slowest in 20 Years: Australia Credit
San Francisco Chronicle
5 that conditions in the stock and bond markets are reminiscent of the financial crisisof late 2008. "The 'new normal' is characterized by volatility and uncertainty -- not only in respect to market developments, but also in consideration of the ...
5 Things Roiling the Markets
U.S. News & World Report (blog)
Policymakers in the United States and Europe have spent much of the last three years intervening in the economy, to halt a financial crisis and prevent a bad recession from becoming worse. By now, you'd think all that firepower would have solved the ...
Why did the GOP turn against stimulus? Ask a psychologist.
Washington Post (blog)
Morgan Stanley says the question isn't whether governments will default. It's how they will default. The IMF says there's no reason any governments should default, and makes an interesting point on the difference between primary-deficit problems and ...
Kudos fitting but prudence needed
The Canberra Times
BY THE CANBERRA TIMES Monday's comment by visiting European Commission president Jose Manuel Barroso that Australia could be proud of being the only developed country to have escaped the recession that followed the global financial crisis was, ...
RBI governor D Subbarao favours SLR cut
Economic Times
MUMBAI: Statutory liquidity ratio, the proportion of bank deposits set aside in safe government bonds, 'must' be brought down for an efficient market despite the buffering role it played in the economy during the global financial crisis, ...
U.S. Postal Services on Verge of Default
U.S. Election News
Postmaster Patrick R. Donahoe said in an interview the US Postal Service is in a dire crisis and if they government does not act and help, the agency will default. The cause of USPS situation is a cited as a combination of increased internet use over ...
Dividend Showdown: Dividend Champions Vs. Mortgage REITs
Seeking Alpha
In the wake of the financial crisis, many income investors are flocking to a new class of companies that offer market-crushing yields: mortgage real estate investment trusts. This is one of the hottest, fastest growing sectors in the market, ...
RBS: Greek default this year
CITY A.M.
GREECE will default in December, according to analysts at RBS, as yields on the sovereign's short-term debt reached a record yesterday. As Eurozone finance ministers struggled to reach a deal on the collateral they will demand in return for Greece's ...
Pérez Esquivel sends letter to Obama with advice on how to 'avoid default'
Buenos Aires Herald
Nobel Peace Prize winner Adolfo Pérez Esquivel sent a letter to US president Barack Obama, in which he offers some suggestions on how to leave an economic crisis behind in case of a financial default. The letter written by the local human rights ...
Money Supply Growth Update: It's All About Europe
Seeking Alpha
Clearly, no one wants to lend Greece money, and everyone fears that the now-inevitable Greek default will not only wipe out lots of bank capital, but might also lead to otherPIIGS defaulting, and if that snowball started rolling downhill it could get ...
Global markets take major beating
Atlanta Journal Constitution
But a full-blown financial crisis in Europe could have a devastating impact on both sides of the Atlantic. The costs that banks pay to fund their businesses would rise, lending would slow and related institutions might also fail because of the complex ...
Post Newsletters & Alerts
Washington Post (blog)
Morgan Stanley says the question isn't whether governments will default. It's how they will default. The IMF says there's no reason any governments should default, and makes an interesting point on the difference between primary-deficit problems and ...
Don't bank on containing contagion
Business Spectator
If the contagion from the state of southern Europe is to be contained and prevented from undermining the stronger economies, led by Germany, that are eventually going to have to bail out and restructure the rest of the Eurozone, their banking systems ...
The Familiar Terrain of 'Uncharted Territory'
The Atlantic Wire
What they mean to say is that traditional thinking by economists may not be enough to answer our problems, or as Mark Thoma put it more bluntly in The Fiscal Times, "What caused the financial crisis? Don't ask an economist." Want to add to this story? ...
Briefly
Charlotte Observer
Fears of a new financial crisis and worries about the health of the US economy sent share prices tumbling in Europe on Monday, and Asian markets opened lower today. US markets were closed Monday for the Labor Day holiday, but Wall Street braced for a ...
Goodrich 5-year Credit Default Swap widens 1.64 basis points rising for a ...
Military & Aerospace Electronics
Goodrich 5-year Credit Default Swap (GR.US) widened 1.64 basis points (or 2.4%) to close at 70.31 basis points. The CDS rose for a second day on Monday bringing its two-day rise to 3.22 basis points or 4.8%. An increase in spread is a bearish signal. ...
Credit Default Swaps and the Financial Crisis - Academic Commons
Title: Credit Default Swaps and the Financial Crisis; Author(s): Mirochnik, ... creditdefault swaps (CDS) played in the run-up to and during the financial crisis that ...
academiccommons.columbia.edu/catalog/ac:138122

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