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

Monday, September 26, 2011

Goodbye Greece and Goodbye Euro

Europe, like the U.S., has a short-term problem and a long-term problem.  In the case of the U.S., the short-term problem is high unemployment and a stalled economy. The long-term problem is fiscal . . . .Europe's short-term problem, simply put, is Greece. http://www.johnmpoole.com/2011/09/goodbye-greece-and-goodbye-euro.html

Greece will do 'whatever it takes' to stave off default, stay in euro zone
Globe and Mail
He also suggested that European governments should make €1-trillion available to alleviate the debt crunch and prevent contagion. Meanwhile, the Institute of International Finance Inc., which rallied its European members to support a July agreement on ...
Greek default would destroy faith in Europe: Merkel
Reuters
BERLIN (Reuters) - Allowing Greece to default on its debt now would destroy investor confidence in the euro zone and might spark contagion like that experienced after the bankruptcy of Lehman Brothers in 2008, German Chancellor Angela Merkel said on ...
Euro Trading Above Average Since 1999 Debut Undermines Calls for Collapse
Bloomberg
23 (Bloomberg) -- Michael Hewson, a market analyst at CMC Markets, discusses the prospects of a Greek default, the outlook for European Central Bank interest rates and the euro-dollar exchange rate. Hewson speaks with Deirdre Bolton on Bloomberg ...
Kudrin Prefers Greek Rescue to Prevent Italy, Spain Contagion
Bloomberg
US Treasury Secretary Timothy F. Geithner told an International Monetary Fund meeting that the Greek-led turmoil may lead to “cascading default, bank runs and catastrophic risk.” Asked whether he thought Greece would default, Kudrin said, ...
Worsening financial crisis: Global financial firms like Bank of America ...
Economic Times
MUMBAI: Global financial companies have begun cutting jobs in India as the worsening financial crisis in the West dims business outlook, forcing companies to scrap fund-raising and M&A plans. Bank of America Merrill Lynch, Nomura, UBS and HSBC are ...
Global economy week ahead: From a soft patch to quicksand
Reuters
Financial markets priced in a growing risk that Greece may default, which could touch off a panic worse than what followed the Lehman Brothers bankruptcy. "The Lehman crisis was about rescuing a company. Now it involves a country's sovereign debt so in...
Greece prepares to default within the euro – the worst of all possible worlds
Telegraph.co.uk (blog)
By Daniel Hannan Politics Last updated: September 25th, 2011 Ever since the bailout was agreed, this blog has been predicting a Greek default. Despite perfunctory official denials, almost no one now seriously expects the Greek government to honour  its ...
Disorderly Greek default is global worst-case scenario
Irish Independent
AS panic about a possible Greek default gathered pace again on Friday against the backdrop of European political paralysis that is now infecting its banking system, there are increasing risks that we are sliding down the slope of a double-dip recession ...
Specter of 2008 financial crisis looms again
The Korea Herald
The spread on credit default swaps for Korea stood at 202 basis points on Friday in New York, higher than that of France, one of the troubled spots in the eurozone, with its major lenders swallowing a painful credit rating cut. ...
Today's financial crisis nothing to Renaissance Florence
The Independent
Banks failing and states overwhelmed by debt - not the panicked headlines of newspapers around the globe today but events dating back to Renaissance Florence, the financial capital of its day. "Money and Beauty", an exhibition in the Tuscan capital ...
What Predicts A Financial Crisis?
Business Insider
I think this warning should be kept in mind when three years after the largest financial crisis in history, we see attempts to gut effective regulation of the US financial system. From Moneyline.com: Republicans will are likely to up attacks on the ...
Financial Crisis Already Being Felt In Football – Arsene Wenger
Inside Futbol
Arsenal boss Arsene Wenger believes that football will not escape the effects of another financial crisis and that the economic situation is already beginning to make itself felt. The Gunners have seen their attendances dip slightly, although the main ...
Greece Will Default – Yet Another False Alarm Or What?
Business Insider
Via Sky news: G20 ministers are preparing for Greek default. According to Ed Conway of Sky News, efforts behind scenes by G20 members are preparing for defaults and recapitalisation of banks. Although immediate default of Greece is not likely, ...
Will Korea suffer a repeat of the 2008 financial crisis?
동아일보
The credit default swap spread, the barometer for risks to Korea`s sovereign bankruptcy, rose to 2.02 percent Friday, up 0.73 percentage points from early this month. The figure is 0.05 percentage points higher than 1.97 points of France, ...
Eurozone crisis impact: Tough times ahead for Indian markets as overseas ...
Economic Times
MUMBAI: Shares may plunge this week as nervy investors offload stocks after US Treasury Secretary Tim Geithner and RBI Governor Duvvuri Subbarao warned of a financial market meltdown in case of a Greek default. With India and China, the two growth ...
Korea's debt risks rise on global woes
The Korea Herald
Korea's sovereign default risks went up last week as the Korean won and the main stock index confronted a selling spree amid growing concerns over the country's wobbly financial market battered by the deepening fiscal crisis in Europe. ...
Credit card default tops Dubai economic crimes
Emirates 24/7
Number of economic crime cases in Dubai has risen in the first six months of this year compared to the same period in 2010, with credit cards fraud topping the list. About 306 cases were reported in the first half of this year as against 286 cases ...
Damage limitation is best scenario
Fundweb
Several countries have gone beyond the point of no return. It is likely that most of these will default in some way. The biggest risk remains contagion, as indicated by previous increases in Spanish and Italian bond yields. At the heart of the problem, ...
Greece needs decade to get competitive
Frontier Post
With anxiety about a possible Greek sovereign debt default rising in Europe, the chief economist of German insurer Allianz said a major haircut for Greek government bondholders would only increase the risk of contagion in the euro zone. ...
UK FACES NEW £1BN BILL TO BAIL OUT EURO
Express.co.uk
Gerard Lyons, chief economist at international bank, Standard Chartered, said: “If they can raise a fund big enough to fight contagion to other countries, then a Greek default could be the best of a bad job.” Yesterday, Tory MP Desmond Swayne, ...
Lessons From Last Week: From Faith And Hope To Fear And Dread
Seeking Alpha
Major money center banks in France and elsewhere are in trouble, facing lack of funding as the world shuns them as too risky, given that Greece and others are expected to default, hence credit rating downgrades too. US and Asian banks were already ...
G20 consider €3trn rescue package for eurozone
Irish Examiner
The G20 have started drawing up plans to expand the European bailout fund to prepare for a possible Greek default which experts say may be as soon as November. The International Monetary Fund has also been discussing what it is describing as a ...
A Look at Next Week in the Markets
MarketWatch
Next week the markets will be dominated by news coming out of Europe, especially any new information about a possible Greek default. Expect possible window dressing as the quarter comes to an end. Laura Mandaro Joins Bob O'Brien and John Shipman on The ...
Gambling on our financial future
The Guardian
If society is to have a real choice about how to deal with financial insecurity, the centre-left needs urgently to develop an alternative to the centre-right's approach which is fast becoming the defaultpolicy and will be incredibly difficult to ...
Miliband to slash uni fees; Greek default expected; Tony Blair and the divorcee
First Post
By Staff Reporter G20 'EXPECTS GREECE TO DEFAULT'G20 leaders now accept that Greece will default on up to half its €350bn national debt and are frantically making plans to deal with the repercussions, according to the Independent on Sunday. ...
Is Austerity Contractionary In The PIIGS?
Seeking Alpha
Its not clear to me, however, that for the PIIGS austerity would be contractionary. I've written and erased several posts on this already but let me just lay down my primary areas of confusion. In the case of the Eurozone, we see various government ...
What's the Plan After Default?
FrumForum
This summer, a better educated, more sober, more honest, and probably less adulterous Congress pushed the United States to the verge of national default. Back in 1953 Joe McCarthy was in Congress. But even he didn't suggest lowering the federal tax ...
Greek govt says Athens can't be forced out of eurozone
ABC Online
Now there are reports of moves to increase that fund to as much as $4 trillion but a part of this unofficial plan is what every government has said it won't allow - a partial default of Greek debt. PHILIP WILLIAMS: It seems not a day goes by that some ...
NHS privatisation fears as PFIs cause “financial crisis
Kent News
By Marijke Cox, Reporter Sunday, September 25, 2011 Fears have been raised that crippling “NHS mortgages” could push the health sector closer to privatisation. To send a link to this page to a friend, simply enter their email address below. ...
Markets likely to see further selling pressure
Hindu Business Line
The market last week corrected heavily on expectation that Greece might announce a default. But the Greek Finance Minister, Mr Evangelos Venizelos, is still confident of the country weathering the storm. He maintained that default is out of the ...
CDS Implied Probability of Default – Be Careful | ZeroHedge
By Tyler Durden
Submitted by Peter Tchir of TF Market AdvisorsCDS Implied Probability Of Default – Be CarefulUnless something changes in the next 24 hours, I expect we will hear more and more talk about default, not only of Greece but of other countries ...
ZeroHedge
CREDIT UPDATE – THE EMERGING MARKET CONTAGION ...
By Macronomics
If you don't have a functioning financial system the world economy won't be revived. All the major economies have their responsibility to assist at a pace which is required to clean up the balance sheet of the banking system and to ensure that ...
PRAGMATIC CAPITALISM
Germany Wants 50% Default for Greece « Blogs For Victory
By Mark Edward Noonan
And now that it is clear that contagion is threatening to sweep through the core, it is back to Germany to prevent the gangrene, no longer contagion, from advancing beyond the PIIGS. However, in order to prevent a full out revolution, Germany's ...
Blogs For Victory
Is Austerity Contractionary in the PIIGS? « Modeled Behavior
By Karl Smith
Mainly I have thought about ECB policy as a whole. However, there is this debate going on over what the individual countries as countries should do. Its not clear to me, however, that for the PIIGSausterity would be contractionary. I've written ...
Modeled Behavior
Dutch Central Bank President Discusses Possible Greek Default ...
By Fani Toli
A Greek default “is one of the scenarios,” Klaas Knot said in an interview published in a Dutch newspaper. He also added: I won't say that Greece cannot.
Greek Reporter Europe
Guest Post: Greece will Default But at What Conditions ...
By keeptalkinggreece
Default, and the knock on effects on the other PIIGS economies, could mean that some members, such as Greece or even Germany, leaving the Eurozone. The Greek government has to prepare for events that unfold. For instance,if Greece ...
Keep Talking Greece
Sovereign Debt Watch: Attempting to Avoid “Contagion
By Meep
So it seems that was evident to most a while back is now being admitted by those “in charge”: there's no way Greece is not going to default: No longer... ... Sovereign Debt Watch: Attempting to Avoid “Contagion”. By. Meep. – September 25 ...
Conservative Commune
German Banking Group Warns of Contagion, Requests Taxpayers to ...
By noreply@blogger.com (Michael Shedlock)
Mish's financial blog covers global news and macroeconomic events regarding the world economy. The blog's primary focus is inflation, deflation, and hyperinflation topics, especially currencies, gold, silver, crude, oil, energy and precious ...
Mish's Global Economic Trend Analysis
EU to protect itself against 'inevitable Greek default' - Business - Mail ...
G20 sources said up to 50% was likely to be wiped off the face value of Greece's €350-billion debt -- but not until Europe had put into place a war chest to prevent the contagion spreading. More money will be disbursed by the International ...
Mail & Guardian News Feed
The Financial Crisis and the Geography of Wealth Transfers
By repec
This paper studies the geography of wealth transfers during the 2008 global financial crisis. We construct valuation changes on bilateral external positions in equity, direct investment and portfolio debt at the height of the crisis to map who ...
PoliEcon

Euro Crisis - Google News

Fiscal Cliff - Google News

Economics, interest rates, house prices, inflation, Bank of England

Markets News - Global Financial Market News

Financial Crisis

Jeremy Warner - Finance and business comments

Ambrose Evans-Pritchard - Finance and business comments

Jeff Randall - Business and politics comments

New Normal News

Views under the Palm

johnyah