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

Monday, October 31, 2011

Credit-Default Swap Risk Bomb Is Wired to Explode: Mark Buchanan

Credit-Default Swap Risk Bomb Is Wired to Explode: Mark Buchanan
Bloomberg
This hidden network has been created by institutions that buy and sell unregulated credit-default swaps. These are essentially insurance contracts on bonds; in the event of a default on the bond, the seller of the swap promises to pay the buyer the ...
Notices of default could hit record low due to new Nevada law
Reno Gazette-Journal
National Default Servicing and Pasillas v. HSBC Bank "” the Nevada Supreme Court mandates "strict compliance" by banks in mediation to bring required documents and have deal-making authority present in mediations. » Oct. 1: AB284 mandates stricter ...
Crude Oil Rallying by Default
Inside Futures
by Chuck Kowalski of CommoditiesStreet.com Crude oil futures caught fire in the last week as the Eurozone crisis looks to have found some type of viable solution - at least for now. I think deep down, most investors who are knowledgeable in economics ...
Despite Market Reactions, Global Financial Crisis Still Looms Large
Zimbabwe Guardian
Contagion hаѕ bееn thе concern — thе dreaded ripple effect frοm Greece, whісh іѕ brοkе аnԁ broker. Fοr thе moment, thаt's bееn averted, bυt іf conditions іn Greece don't improve — аnԁ here's modest hope οn thаt horizon аt thе moment — thеn thіѕ ...
A Default By Any Other Name...
Seeking Alpha
Aha, one thinks, they've found a solution that doesn't involve Greece going into default. They reached a "deal." But wait a minute. The second line reads: "Private Investors to Take 50% Haircut." What is a 50% haircut if not a default? Let's see here. ...
Financial crisis forces people to rethink spending and debt
Evansville Courier & Press
By Mizell Stewart III EVANSVILLE — The financial crisis and resulting recession has wreaked havoc on household balance sheets, forcing families to think much differently about spending and debt. Unemployment and falling home prices have threatened the ...
A little help from the east
The Guardian
Given the economic and political weight of the eurozone, the crisis has the potential to match the damage wrought by the 2008 US financial crisis on the global economy. So China should welcome last week's agreement in Brussels and, in advance of the ...
Default is officially a financial management technique
Examiner.com
President Obama has effectivly created a loan relief scheme that is predicated on default. This will enable and perhaps even encourage, more borrowers to borrow beyond their means because at a measured pace of minimal re-payment ( 10% + 20 years) ...
Large E&O claims stem from financial crisis
Business Insurance
The financial crisis' effect on real estate-related business is being felt in errors and omissions liability coverage. Banking and diversified financial firms that told their clients to invest in risky creditdefault swaps or subprime mortgages now ...
EU Crisis Contagion Risk Exists, Hatzius Tells Der Tagesspiegel
Bloomberg
European economic data remain weak and “contagion is still always a risk” for the US economy, Hatzius said in the interview. Goldman forecasts a slight recession in the euro area for the fourth quarter of 2011 and first quarter of 2012, the newspaper ...
FHA Finds Some Borrowers More Likely to Default on HECM Tax and Insurance
Reverse Mortgage Daily
Borrowers in HECM default share some common characteristics, the Department of Housing and Urban Development reported to attendees of the National Reverse Mortgage Lenders Association conference in Boston last week. Reporting on data compiled in recent ...
The Euro Crisis: Doubting the 'Domino' Effect
Wall Street Journal
One does not have to deny the role of contagion to believe that Lehman was not the domino that toppled the others. But our financial crisis was caused by factors that affected the entire system, just as all corn kernels pop when they are warmed by the ...
A student loan default can trigger dire consequences
Daily Herald
Two weeks ago, the Federal Reserve Bank of New York reported the newest stats on student loan debt. Last year, for the first time ever, the amount of loans taken out by students hit the $100 billion mark. What's more, USA Today recently reported that ...
How government is to blame for global financial crisis
Credit Writedowns
Countrywide was not a Glass-Steagall issue, nor was Bear or Lehman or any of the other major problems from the credit crisis. In fact, the 'fix' for the investment banking business model was universal banking as all of the existing investment banks ...
The Dance of the Weak Sisters – Part 2
Global Economic Intersection
You must default on all or part of your international debt. This is a complex and tricky business. I offer guidelines below, but technical details will remain to be worked out. The President should announce that the country will be leaving the Eurozone ...
Eurozone Rescue Plan: Lessons From Argentina's Currency Crisis
Seeking Alpha
In both cases macroeconomic adjustment is impossible through the exchange rate, which leaves internal devaluation (ie austerity) and/or debt default as the only remaining options. 2. Both policies worked well for about a decade. ...
Sanjaya Baru Merkels moment
Business Standard
Every major financial crisis has geopolitical consequences. The financial crises of the 1980s and 1990s in Latin America resulted in the emergence of Brazil as the dominant regional power, overtaking decisively other competitors like Mexico, ...
Securities Law Prof Blog: Lo on Financial Crisis Literature
By Securites Lawprof
The recent financial crisis has generated many distinct perspectives from various quarters. In this article, I review a diverse set of 21 books on the crisis, 11 written by academics, and 10 written by journalists and one former Treasury Secretary. ...
Securities Law Prof Blog
Lo on Financial Crisis Literature - Legal News Directory
By admin
Reading About the Financial Crisis: A 21-Book Review, by Andrew W. Lo, MIT Sloan School of Management; MIT CSAIL; National Bureau of Economic Research (NBER),
Legal News Directory
Fitch: Greek debt deal consitutes a default | ForexLive
A 50% haircut constitutes a default. The only one's who don't seem to know it are the ISDA, the one's who declare what is or is not, a credit event, and the ECB, which can't accept bonds deemed to be in default as collateral. Share and Enjoy: ...
ForexLive

Greece: Why Not Just Call It A Default Now?
Seeking Alpha
If it's voluntary, the thinking goes, then it won't count as a “default.” Not having it count as a default, in turn, means it won't trigger billions of dollars worth of credit default swaps, which are the credit derivatives (ie insurance policies) that ...

Greek deal may imperil sovereign CDS market
Reuters
By Sarah White and Douwe Miedema LONDON (Reuters) - The future of the Credit Default Swap (CDS) market -- used to hedge against the risk of a country defaulting -- may be at risk if these derivative instruments do not pay out after this week's rescue ...
Euro falls as Fitch calls Greek deal a default
BusinessWeek
The euro is falling against the dollar after Fitch ratings agency said the deal reached by European leaders to cut Greece's debt load would constitute a default for the country. In midday trading Friday, the euro fell to $1.4170 from $1.4216. ...
Preventing financial crisis "true test" for G20: Zoellick
Xinhua
WASHINGTON, Oct. 28 (Xinhua) -- The true test for the G20 will be whether it can prevent a future financial crisis, World Bank Group President Robert Zoellick said Friday ahead of the upcoming G20 summit in Cannes. "The world economy is hobbled not ...
Greece's continuing cycle of debt and default
Business Standard
The ongoing financial crisis in Greece is a familiar situation for Athens. Greece has been in debt since its war for independence from the Ottoman Empire in the 1820s, which means international creditors and foreign sponsors have played a role in Greek ...
Queen asks Commonwealth leaders to rise up to global insecurity, hunger ...
The Nation Newspaper
By Yusuf Alli and Vincent Ikuomola, Australia 4 minutes ago •High-powered women ... Bangladesh Prime Minister Sheikh Hasina, the Queen, Julia Gillard, and Trinidad & Tobago PM Kamala Persad-Bissessar. Source: The Daily Telegraph Queen Elizabeth II ...
What to do in case of default
Hindu Business Line
Despite all your homework, you may find that the company in which you invested develops afinancial crisis and is unable to repay its dues. Or it may simply be a case of 'loot and scoot'. The defaults by Lloyds Finance in the late 1990s or Morepen ...
Legal challenge over 50 per cent write-off agreement could delay eurozone's ...
This is Money
The default question is likely to be one of several details that need to be ironed out before the eurozone rescue is deemed a complete success. It and other potential stumbling blocks will be at the top of the agenda at the meeting. ...
Who will pay for the euro bailout?
Scotland on Sunday
At least some of the PIIGS will be jettisoned (Sarkozy pointedly admitted on Friday that Greece should never have been allowed to join the euro). In such a scenario, the Germany-led countries – including France and the Benelux nations – would finally ...
Europe Deal Doesn't Take Care Of The Europe Crisis
World Of WallStreet
"people have begun to closely examine the details of the European debt deal, they have started to realize that this "debt deal" is really just a "managed" Greek debt default." "But investors are not stupid. Greece was allowed to default. ...
Oil prices drop following day that saw big gains
NewsOK.com
Oil prices dropped Friday as investors acknowledged that Europe needs to tighten its belt for years to work through a credit crisis and factory production stalled in Japan. By CHRIS KAHN Leave a comment NEW YORK — Oil prices dropped Friday as ...
If Things Are So Bad, Why Is The Market Going Up?
Seeking Alpha
I am bearish on in a medium term time frame due to my concerns regarding the viability of the plan recently announced in Europe to prevent systemic economic and financial contagion. In this particular case, my timeframe for the current European plan to ...
Clearinghouse over-confidence
Sunday's Zaman
Worse, as we saw in the financial crisis, if many financial institutions have many such contracts, a rumor of insolvency can induce all of one institution's derivative counterparties to demand collateral or payment simultaneously, triggering a run that ...
A Knee-Jerk Stock Rally And Lindsay Lohan In Playboy
Forbes
So EU bureaucrats, in their haste to 'stick it to speculators and short sellers,' may actually bring about a collapse in demand for the debt of other PIIGS countries, as CDS is no longer a reliable hedge. If so, the need to refinance Italian debt would ...
Fitch Solutions: ConAgra CDS Widen, General Mills Comes In Ahead of Earnings
Benzinga (press release)
Though credit default swap (CDS) spreads on ConAgra (reporting today) have widened 15% over the past three months, the company has kept pace with the broader North America food and beverage sector. CDS liquidity for ConAgra has remained largely ...
Occupy by the books
London Community News
David Caloren, supervisor at the London Public Library central branch, put up a display with books from globalization, the financial crisis and the growing gap between the rich and the poor, to raise awareness of the Occupy movement. ...
German Chancellor Angela Merkel urges crisis contagion “firewall ...
By XinhuaNET.COM
Merkel urges crisis contagion firewall, stricter EU rules German Chancellor Angela Merkel Wednesday said the eurozone debt crisis and fundamental weakness.
Siam Daily News Online
Cheat sheet: Big players in the financial crisis - what they did & how ...
Hat tip to SDRman, on another board Excerpt: Widespread demonstrations in support of Occupy Wall Street have put the financial crisis back into the... ... As we've reported, a hedge fund named Magnetar worked with banks to fill CDOs with the riskiest possible materials, then used credit default swaps to bet that they would fail. Magnetar says that the majority of its short positions were against CDOs it didn't own. Magnetar also says it didn't choose what went its own CDOs, though ...
The Wall Street Examiner
How Europe Handled the Financial Crisis » Politics Plus
By TomCat
Here is the US, our efforts at handling our financial crisis. We have made whole the people, whose criminal greed imposed the crisis upon us, given the political party most responsible for enabling it tremendous gains in the last election, and ...
Politics Plus
Will Greece be in Default under New Plan?
Greece bondholders agreed to take a 50% haircut under the new EU plans... but does that constitute a default?
About.com International Investing

Saturday, October 29, 2011

MF Global Draws Down on its Credit Lines

Corzine's MF Global Draws Down on Credit Lines - Bloomberg:
Bonds of MF Global Holdings Ltd. (MF) declined to as low as 35 cents on the dollar after the futures broker run by Jon Corzine drew on its credit lines and Moody’s Investors Service and Fitch Ratings cut the firm’s ratings to junk.

Fitch: 50% Greek Bond Haircut May Equal Default - Bloomberg:
European leaders’ agreement on a 50 percent haircut on Greek bonds may create an event of default if investors accept it, Fitch Ratings said in a statement today.

1. The problem is not solved . . . .2. The markets know it --(watch the Italy/Germany spread). . . .

Credit-Default Swaps as Hedge Threatened by Greek Debt Plan
San Francisco Chronicle
The talks were regarded by many investors as a last-ditch attempt to stem the sovereign crisis, while preventing the contagion to Spain, Italy and Portugal that they worried a trigger for swaps would cause. The involvement of the IIF, which represents ...
Fitch: Greek Debt Deal a Default
Wall Street Journal
"The agreement to materially increase the size of the EFSF's lending capacity to around €1 trillion is a critical first step to enhance market confidence in the ability of policy makers to limit the risk ofcontagion spreading to the core euro-area ...
Erste cuts credit default swap exposure
Financial Times
The Austrian bank said its exposure to credit default swaps – a derivative that pays out if a debtor defaults – had dropped to just €300m, compared with €5.2bn when its position was revealed in a profit warning on October 10. Analysts said the size and ...
Sovereign, Bank Bond Risk Rises in Europe, Reversing Declines
BusinessWeek
By David Goodman Oct. 28 (Bloomberg) -- The cost of insuring against default on European sovereign and bank debt rose, reversing earlier declines, according to traders of credit-defaultswaps. The Markit iTraxx SovX Western Europe Index of swaps on 15 ...
Greek debt haircut constitutes default: Fitch
Globe and Mail
New York, Paris— AP The euro fell against the dollar EUR/USD-I Friday after Fitch ratings agency said the deal reached by European leaders Thursday to cut Greece's debt load would constitute a default for the country. The plan asks Greece's private ...
As student debt grows, so does the number of students who default on loans
Muskegon Chronicle - MLive.com
Growing default rates show the extent of which former students are struggling to pay off student debt, which has grown to monumental proportions in recent years. And because student loans can't be written-off in bankruptcy court, the debt weighs on ...
Commonwealth can grapple with financial crisis: UK
IBNLive.com
Perth: The Commonwealth, which spans 54 countries with a trade network worth $3 billion, can tackle global challenges ranging from the financial crises to a changing climate, said British Foreign Secretary William Hague. Hague made the remark at the...
Greek Creditor Treatment Raises Contagion Risk, BNP Paribas Says
BusinessWeek
“The tough treatment of Greece's creditors increases contagion risks.” European officials ended all-night talks in Brussels yesterday with an agreement to recapitalize banks, boost the euro-area rescue fund and deliver additional financial support to ...
Dousing A Thermonuclear Explosion With A Fire Hose
Seeking Alpha
It also redistributes wealth from non-PIIGS citizens to PIIGS citizens by having the former essentially assume the liabilities of the latter. Since EFSF does very little to actually reduce the probability of an eventual default, then we must ask what ...
Fitch Regards Haircuts on Greek Debt as Default
Firedoglake
If the haircuts are seen as a default event, it would trigger certain credit default swaps, which since we actually don't even know who holds what in that regard (!), would be wildly unpredictable and dangerous. So one of the rating agencies saying ...
Iceland provides lessons for dealing with slumps - Paul Krugman
Houston Chronicle
The doctrine in question amounts to the assertion that, in the aftermath of a financial crisis, banks must be bailed out but the general public must pay the price. So a crisis brought on by deregulation becomes a reason to move even further to the ...
PIIGS At The Trough
Seeking Alpha
The effect of the grand bargain will be to reduce the Greek debt burden all the way down to – drum roll, please – 120% of GDP by 2020, a level typically associated with unsustainable debt dynamics and eventual default. So you can see, ...
Dodd Frank Victory as MF Global Avoids Contagion
TheStreet.com
That is because although MF operates as a broker in the derivatives markets -- where financial contagion can spread like wildfire -- the firm mostly trades exchange traded derivatives moved through a securities "clearinghouse. ...
War of the Words: Haircut Means Default
NewsMax.com
Sounds like a nice term, at least compared to what it really is: A default. Language is precise, and substituting different words makes a vast difference to change perception. Greece's “haircut” is a staggering 50 percent. Imagine putting a substantial ...
The Recent Global Financial Crisis: Impacts On Selected Developing Regions ...
Insurance News Net (press release)
The global financial crisis hit portfolio flows very hard in late 2008 and early 2009, confirming that mere was global financial contagion with a universal flight to safety. Banking stresses were also seen in low-income countries that were expected to ...
Polish Government May Surprise on Fiscal Cuts, Barclays Says
BusinessWeek
Credit-default swaps insure against non-payment. Barclays also recommends buying the zloty and selling the forint as Poland is more resilient to contagion from the euro region's debt crisis, Hewitt wrote. “The external contagion risks for the region ...
Being Pessimistic To Build Optimism
istockAnalyst.com (press release)
The new European plan to deal with the potential of sovereign default and the increasing doubts about solvency of financial institutions was announced two days ago. Financial markets so far seem to like the plan. The plan did not provide many surprises ...
DBRS RMBS ratings now includes loan-level default data
Housing Wire
by KERRI PANCHUK Ratings agency DBRS enhanced its loss model and rating methodology for residential mortgage-backed securities this week to include RMBS Insight, which measures defaultprobability statistics at the loan level. ...
Citi: Muni Bonds Still Facing Default Dangers
NewsMax.com
By Forrest Jones Municipal bonds, once a safe-haven investment only to be branded risky by many experts in wake of the Great Recession, have held up despite famously bearish calls, but they're not out of the woods yet, says George Friedlander, ...
EU Bishops calls for long term political vision to deal with financial crisis
Independent Catholic News
COMECE Bishops have called on the European Union and its citizens to refrain from blaming one another, and instead assume co-responsibility for finding solutions to the current financial crisis. They also call on European leaders to adopt a long-term ...
Government had a role in financial crisis
WatertownDailyTimes.com
Mark MacWilliams, in a recent letter, refers to Congress deregulating the financial industries but offers no specifics. In fact, since 1980, Congress has passed four new sets of regulations for every one deregulatory act, and between 2001 and 2008 ...
Short sales put many homebuyers in same boat
Lodi News-Sentinel
The San Diego Associated Press reported that Banks sent nearly 26 percent more default notices to California homeowners in the third quarter compared with the previous three months, stepping up actions against those with delinquent loans in what may ...
Financial market gains ground
The Korea Herald
The fall in CDS premium came as European leaders agreed on a write-down of 50 percent of banks' Greek bond holdings and other measures aimed at tackling the protracted crisis that raised the specter of another financial crisis...
Asia-Pacific Bond Risk Falls, Credit-Default Swap Prices Show
Bloomberg
By Yusuke Miyazawa - Fri Oct 28 01:10:20 GMT 2011 The cost of insuring Asia-Pacific corporate and sovereign bonds against non-payment declined, according to credit-default swap traders. The Markit iTraxx Japan index dropped 18 basis points to 157 basis ...
CMBS defaults fall and spreads tighten
Housing Wire
by KERRI PANCHUK Commercial mortgage-backed securities are benefiting from tightening spreads and a slowing loan default rate, analysts said this week. Trepp, an analytics firm that measures CMBS, reported that the CMBS market on Thursday "had one of ...
An Austrian Perspective on the Financial Crisis - Coordination ...
By Peter Boettke
Peter Boettke| Here is Larry White providing some perspective on the ongoing financial crisis. Austrian Economics and the Financial Crisis from FEE on Vimeo. I will be speaking myself on the topic later today at Delaware State University ...
Coordination Problem
Fitch says 50% Haircuts would Constitute Default; No Official Ruling ...
By noreply@blogger.com (Michael Shedlock)
Under the broad deal reached this week to stem the euro-zone's financial crisis, holders of credit-default swaps on Greek government bonds aren't expected to receive any payout, even though a preliminary agreement between financial ...
Mish's Global Economic Trend Analysis
Greek Default Watch: Greece After the Haircut: Numbers and Politics
By Nikos Tsafos
Greece was able to default without defaulting – it got strong multilateral support and was able to engineer a “voluntary” haircut without going into official default. It was also able to retain the 21 July agreement and it was able to resolve all ...
Greek Default Watch
Truisms of a Financial Crisis | Bear Market Investments
By admin
“It is a central irony of financial crisis that while it is caused by too much confidence, too much borrowing and lending, and too much spending, it can only be resolved with more confidence, more borrowing and lending, and more spending. ... Two out of five Americans with federal student debt can't make monthly payments and either defer, default or are delinquent, according to Mark Kantrowitz, publisher of Fastweb.com, a free scholarship-matching service, and FinAid.org, a source of ...
Bear Market Investments
default but not really a default | ForexLive
So Fitch is saying the Greek haircut is a default event, bond holders will “voluntarily” lose 50% but the ISDA says credit default swaps will not be. ... Not to mention the fear contagion that would come with it. @asier,. I agree it is a default...
ForexLive
The Weak Sisters Should Leave the Eurozone and Default – Here's ...
By Elliott Morss
In this second article in the two-part series on why Greece, Ireland, Portugal and Spain should leave the Eurozone, I offer specifics on how it should be done.
Morss Global Finance
Default, Credit Event, And Too Big to Fail | TF Market Advisors
By admin
It looks like Fitch would declare a 50% write-down a default. And yes, it is a default. No matter how anyone wants to spin it – restructuring, PSI, etc., it is definitely a default. It is NOT a Credit Event. Maybe the name should be changed from ...
TF Market Advisors
Debt Plan Could Deny Those Who Bet on Default — Clearing and ...
By RSS Feed
And many investors have bet against Greece, using billions of dollars in complex financial instruments, called derivatives, that turn a profit when there is a debt default. Worried about the ripple effects of any such default, European leaders announced on Thursday a plan for a voluntary ... I'm all for people betting, but when betting leads to worldwide contagion, I think it needs to be stopped.” Whether investors will really lose interest in derivatives on sovereign debt in Europe is unclear. ...
Clearing and Settlement — Clearing...
Eurozone crisis: contagion must not be allowed to spread, says ...
PM challenged on coalition divisions over Europe at prime minister's questions before heading to Brussels for summit.
www.guardian.co.uk/.../eu-debt-crisis-contagion-cameron-pm...
How European Contagion Could Bring Down The US Treasury ...
Accordingly, it is my belief that if the contagion spreads from Greece to .... is a delicate and politically painful process, by default it almost certainly will not happen ...
www.minyanville.com/businessmarkets/.../us.../37559?...

Friday, October 28, 2011

The eurozone financial crisis explained

The eurozone financial crisis explained
USA Today
A crisis that began with the discovery that Greece couldn't pay its debts has threatened to engulf not just the 17 nations that use the euro currency, but the entire 27-nation European Union. Rich nations such as Germany and France have been the ...


Euro-Zone Cheer Casts Cloud Over Treasurys
Wall Street Journal
By Cynthia Lin Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Despite doubts about how long the current euro-inspired euphoria will last, Thursday's cheery atmosphere drove a major dent in the US Treasury market, propelling long-dated yields to their ...
Dallara Says Greek Technical Default to Last Weeks, Maybe Days
BusinessWeek
By Rebecca Christie and Maryam Nemazee Oct. 27 (Bloomberg) -- Greece will pass through a short period of “technical default” in the final stages of a newly agreed bond exchange, said Charles Dallara, managing director of the Institute of International ...
Papandreou Says EU Deal Gives Greeks Time to Defeat Default
San Francisco Chronicle
(Updates with President Sarkozy saying 'mistake' to let Greece into the euro area in ninth paragraph. For more on the European debt crisis, see EXT4.) Oct. 27 (Bloomberg) -- Prime Minister George Papandreou urged Greeks to back him in overhauling the ...
Obama Calls For Firewall To Prevent Europe Crisis Contagion -FT
Wall Street Journal
Obama wrote that the US would support Europe in resolving the financial crisis, which "must be resolved as quickly as possible," and he was "confident" that Europe would be able to meet the challenges ahead. To ensure global growth is balanced and ...
A Greek default in all but name
Washington Post
What constitutes a default? Here is Standard & Poor's definition: “We generally define a sovereigndefault as the failure to meet [the] interest or principal payments . . . contained in the original terms of the rated obligation. ...
Global Financial Crisis: Now in Game Form
Wall Street Journal (blog)
The exercise, supposedly occurring on a Friday in April 2013, is recreating visions of the credit crisisof 2008. The market has lost confidence in the fictitious bank, informs one panelist while another takes a call from the CEO of the bank about how ...
Investors set to pay for Greek default
Money Management
The country stands on the brink of default to the detriment of investor confidence worldwide. The greatness of Ancient Greece is considered by historians to have begun with the date of the first Olympic Games in 776 BC and ended with the death of ...
Dallara Says Greece Will Have Brief `Technical Default'
Washington Post
Oct. 27 (Bloomberg) -- Charles Dallara, managing director of the Institute of International Finance, discusses the Greek debt agreement reached by European leaders, who persuaded bondholders to take 50 percent losses. He speaks from Brussels with ...
Fear of Contagion
The Majalla Magazine
With a near insolvent and debt-ridden Greece presenting the very real risk of an unmanaged default, the threat of 'contagion' spreading to other debt-laden euro-zone states looms large. These events threaten not only a Europe-wide banking crisis, ...
Truisms of a Financial Crisis
Business Insider
Two out of five Americans with federal student debt can't make monthly payments and either defer,default or are delinquent, according to Mark Kantrowitz, publisher of Fastweb.com, a free scholarship-matching service, and FinAid.org, ...
EU's 'Grand Plan' Leads to More “Irrational Exuberance” and Prevents Contagion
Gold Seek
Contagion remains a real risk especially from Spain and Italy, which unlike Ireland, really are “too big to save”. Italy's debt alone is €1.8 trillion (bigger than the $1.4 trillion bailout fund)‎ and their 10 year bond has again risen to close to 6% ...
European Crisis Postponed; Investors Face Momentous Decision
Seeking Alpha
This is the real crux of the PIIGS problems. Unfortunately, this problem is not even being addressed. 3. A 20%-25% guarantee is insufficient. No sovereign would choose to assume the massive costs associated with default in order to obtain a mere a mere ...
Silvio Berlusconi hit by fresh revelations as Italy faces financial crisis
Mirror.co.uk
The documents are part of a 65000-page corruption case related to a political ally of Berlusconi and details emerged just hours after Berlusconi reassured European Union officials that he was tackling the financial crisis, which threatens to topple ...
EU's Greece Deal Has Dose of Irony
Wall Street Journal
After spending the aftermath of the financial crisis hogging the moral high ground and criticizing "Anglo-Saxon capitalism" for its penchant for financial engineering and excessive leverage, European Union leaders employed some of the same devices for ...
Seamus Coffey: A default for Ireland? It's not as simple as that, I'm afraid...
Irish Independent
From an Irish perspective the question that immediately arises is whether we should be looking to default on some of our sovereign debt in the same way that is now been allowed for Greece. Agreement was struck with the banks holding Greek bonds that ...
An ominous 2012
China Daily
The financial gloom even has us thinking about a doomsday, such as a financial crisis or economic collapse. But throughout history, the global economy has never stopped breathing because of sovereign debt. Next year will still be a year undermined by ...
Did China Try to Warn the US About the Coming Financial Crisis in 1999?
The Atlantic
Note that this is about a decade before the latest financial crisis, and I think some of what was said between the two men is fascinating in light of developments over that decade. (Please excuse potential mistranslations or deviations from precise ...
Financial Crisis Continues To Impact Energy Markets
AOL Energy
But as the impacts of the financial crisis continue to proliferate in political and regulatory spheres as well as across the broader economy, the energy sector may begin to face many of the same challenges as firms in other sectors adjusting to the ...
Daniel Maguire Named Head of SwapClear U.S.
PR Newswire (press release)
Clearnet is the only clearinghouse to have managed a significant OTC default, that being Lehman Brothers in 2008. During the default, Mr. Maguire was also responsible for the fixed income (RepoClear) default management close out, actively trading, ...
Insight into the financial crisis
The Canberra Times
It's that Europe and China will be far worse off as contagion whips around the globe. ''When you look at the problems facing the world, the bubbles and imbalances, America's are easier to fix than most,'' Choyleva told me in Hong Kong. ...
EURO Deal: markets rally on "Unfair default" — RT
By RT
With the Eurozone leadership needing to unveil a 'grand plan' to deal with the European financial crisis, the news that they need to delay until at least mid-next week is raising fears that they are simply trying to bridge the unbridgeable. ...
News RSS : Today
Truisms of a Financial Crisis
By Bill Bonner
Bill Bonner discusses the problems with the mainstream line of thinking with regards to the currentfinancial crisis, with reference to Larry Summers truism. ... Two out of five Americans with federal student debt can't make monthly payments and either defer, default or are delinquent, according to Mark Kantrowitz, publisher of Fastweb.com, a free scholarship-matching service, and FinAid.org, a source of student financial aid information… We'll save Larry Summers some thinking. ...
The Daily Reckoning
Mish's Global Economic Trend Analysis: Credit Default Swaps ...
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
ekathimerini.com | Greece's communists warn of 'disorderly default'
European leaders have effectively made Greece's bankruptcy official, Communist Party leader Aleka Papariga said on Thursday, adding that the situation could develop into disorderly default. She did not elaborate. Eurozone leaders struck a ...
ekathimerini.com : Latest News
Global Financial Crisis: Now in Game Form - Wall Street ...
Global Financial Crisis: Now in Game Form. Share. From: MarketBeat. 4:54pm - October 27, 2011. A global bank failure is being simulated at the Economist's Buttonwood Gathering in New York. Continue reading this article » ...
eWallstreeter
'Economic Democracy' Key to Solving Global Financial Crisis Says ...
By nyct
Brooklyn, NY — Discussing citizen movements that arose in response to the global financial crisis, Costas Panayotakis, author of the new book Remaking Scarcity: From Capitalist Inefficiency to Economic Democracy (Pluto Press, UK, ...
CUNY Newswire
Greek Accord on Bonds Won't Trigger Credit-Default Swaps, ISDA ...
By RSS Feed
attempt to stem the sovereign crisis and prevent contagion to. Spain and Portugal, as well as Italy. German Finance Minister Wolfgang Schaeuble is ... Credit-default swaps backing $10 million of the nation's bonds for five years cost $5.6 million in advance and $100000 annually, according to CMA, which is owned by CME Group Inc. and compiles prices quoted by dealers in the privately negotiated market. That implies an 85 percent chance of default assuming investors recover 32 ...
Clearing and Settlement — Clearing...
Levmore on Why Economists Didn't Predict the 2008 Financial Crisis ...
By lsafranek
Levmore on Why Economists Didn't Predict the 2008 Financial Crisis. Lectures from The Floating University. Staff. Wall Street Journal Ideas Market. October 27, 2011. Last month, we hosted a few videos from The Floating University, which ...
News
Argentina's debt default: Gauchos and gadflies | The Economist
Argentina's default, after a severe economic crisis, sparked social unrest and runs on banks. It subsequently presented creditors with a take-it-or-leave-it offer of ...
www.economist.com/node/21533453?fsrc=rss%7Cfec
S&P/Experian: Default Rates Rise for First and Second Mortgages
Default rates for both first and second mortgages increased during the month of September, according to the S&P/Experian Consumer Credit Default Indices.
www.dsnews.com/.../sp-experian-default-rates-rise-for-first-an...

Default Insurance Market Takes Hit
Wall Street Journal
Under the broad deal reached this week to stem the euro-zone's financial crisis, holders of credit-default swaps on Greek government bonds aren't expected to receive any payout, even though a preliminary agreement between financial institutions and ...
Company Credit Risk Drops as Europe Agrees to Rescue Fund Boost
BusinessWeek
The Markit CDX North America Investment Grade Index, a credit-default swaps index that investors use to hedge against losses on corporate debt or to speculate on creditworthiness, dropped 12.2 basis points to a mid-price of 113.6 at 4:59 pm in New York ...

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