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

Tuesday, October 11, 2011

ECB: Contagion and the European debt crisis

ECB: Contagion and the European debt crisis
In the heat of a financial crisis this will undoubtedly be impossible. ... Moody's believed that contagion from a default of Greece made it more likely that Portugal ... there seems to be significant evidence of actual contagion effects during the European sovereign debt crisis, despite the policies aimed at containing the spreading of instability. Note, however, that there may be latent contagion risks that have not yet materialised. It is quite likely that if the various crisis management measures had not been taken, contagion would be much more severe than presently observed.
www.ecb.int/press/key/date/2011/html/sp111010.en.html
German push for Greek default risks EMU-wide 'snowball'
Telegraph.co.uk
Germany is pushing behind the scenes for a "hard" default in Greece with losses of up to 60pc for banks and pension funds, risking a chain-reaction across southern Europe unless credible defences are established first. German Chancellor Angela Merkel ...
FICO Helps Top Mortgage Servicers Combat Strategic Defaults
MarketWatch (press release)
Strategic default, the phenomenon whereby borrowers with the capacity to make their mortgage payments choose instead to default, has become an urgent and costly problem for lenders. University of Chicago Booth School of Business studies indicate that ...
Contagion and the European debt crisis
IEWY News
[3] In the heat of a financial crisis this will undoubtedly be impossible. Contagion as I have just defined it is, in principle, distinct from other forms of systemic instability, notably the unravelling of widespread imbalances and aggregate shocks ...
Obama calls for 'decisive action' on European financial crisis in calls with ...
Washington Post
By AP, WASHINGTON — The White House says President Barack Obama urged decisive action to resolve Europe's financial crisis during calls Monday with the leaders of Britain and France. Obama spoke separately with British Prime Minister David Cameron and ...
Sovereign, Corporate Credit-Default Swap Indexes Fall in Europe
BusinessWeek
By Abigail Moses Oct. 10 (Bloomberg) -- The cost of insuring against default on European sovereign and corporate debt fell, according to traders of credit-default swaps. The Markit iTraxx SovX Western Europe Index of swaps on 15 governments dropped ...
Fitch Issues REIT Report Quarterly for 3Q'11
MarketWatch (press release)
During this past quarter, Fitch assigned six security-specific ratings, upgraded three issuers and affirmed 12 Issuer Default Ratings among its rated equity real estate investment trusts (REITs). Fitch released its 'Global Economic Outlook' on Oct. 3, ...
This (Liam) Fox hunt is a parlour game compared to the financial crisis
Telegraph.co.uk
Then they must halt the contagion to other countries, and third, they must avoid a banking collapse by recapitalising the weakest. All of the above depend on the alchemy of producing voter support for policies that seem alien and risky. ...
Obama, Geithner, and the Next Financial Crisis
Huffington Post
But the Dodd-Frank Act now gives the treasury secretary explicit authority to find that a large, systemically significant financial company is "in danger of default"; to designate the FDIC as receiver; and to seize, break up, and reorganize failing ...
Is Dexia Bank The Bear Stearns Of The Current Credit Crisis?
Seeking Alpha
A Greek default is likely to be the Lehman moment for the current credit crisis and Dexia's sudden collapse is similar to Bear Stearns. More bank failures in the EU will be a warning that the current crisis is escalating out of control.
Economy in focus: Greece 'may not last six months'
Euromoney Magazine
by Nathan Collins Peter Vanden Houte, chief eurozone economist at ING, believes there will be a restructuring in the next six months – and that an expanded EFSF and significant recapitalisation will be essential to prevent contagion. ...
HH Amir calls for Asian cooperation against financial crisis, terrorism
Kuwait News Agency
Economy is one of the fundamental pillars of any country, a financial crisis in any country will naturally affect other countries. The current international financial crisis still casts its shadows on our countries, and "this necessitates us to work ...
Peak Oil and the Financial Crisis: Where do Oil Prices Fit In?
OilPrice.com
There seems to be general agreement that a Greek debt default is inevitable. This is to be followed by insolvency of many European banks, which in turn will lead to the possibility of debt defaults by Italy and Spain. These countries, of course, ...
Bakrie & Brothers Races to Quiet Fears of a Default
Jakarta Globe
(Reuters Photo/Yusuf Ahmad) Bakrie & Brothers, the holding company of the Bakrie Group, has denied speculation that the company is unable to pay its debts and is on the verge of default. Eddy Soeparno, Bakrie & Brothers' finance director, ...
Braced for Contagion, Poised for Surprises
Zacks.com
Did we get specific plans and agreements about Eurozone financial crisis remedies? Nope. We got verbal commitments about recapitalizing banks before the end of the month and the next G-20 summit. That bodes for a 3% rally in US equities? ...
Africa: The Continent, Currency Contagion and a 400 Basis Rate Hike
AllAfrica.com
There is now a case of currency contagion in Africa. A Chicken and an Egg analysis would show that it was the Uganda, Kenya shillings and the Egyptian pound which turned lower first. The weak currency has imported an unprecedented burst of inflation ...
Dubai premium to Malaysia soars on default risk: Islamic finance
eTaiwan News
The spread rose to 353 basis points on Oct. 4, the widest since March 16, as investors see double the risk of Dubai failing to make repayments than Malaysia, credit-default swaps show. The sheikhdom racked up $113 billion of debt to transform itself ...
Insurers most insulated against eurozone default
Insurance Age
E&Y also predicted that a seven-fold increase in the €440bn of resources available to the Eurozone Financial Stability Facility was needed to create a clear and credible firebreak to prevent financial market contagion. The company added that if ...
Saving the euro: Three steps towards an orderly default
Investment Week
Step two would be to boost the European Financial Stability Facility (EFSF) to limit the contagioneffects from Greece to the rest of the periphery. The fund would need to boosted from its current size of €440bn to €1trn or even €3trn. ...
Banque de France turns a blind eye to European financial crisis
Telegraph.co.uk
Is it just in preparation for the bad debts stemming from a standalone act of Greek default, in which case it would be a relatively minor affair? Or would it be to backstop the system against wider sovereign stresses, which would require new capital of ...
On the clairvoyance of sovereign CDS
FT Alphaville (blog)
In which FT Alphaville asks, should you really take CDS default probabilities at face value? It will come as no surprise to readers that the clairvoyance of CDS is open to question. CDS spreads are more likely to be steered by frightened bond portfolio ...
Michael Lewis returns from financial-crisis tourism
89.3 KPCC
He even has a thing or two to say about former Governor Schwarzenegger's handling of California's perpetual default, the sub-prime mortgage crisis, Ireland and Greece. Lewis reveals the inner-workings of a global meltdown, but can he provide an answer ...
Ruble Rises Fourth Day on Bets Europe Debt Contagion Checked
BusinessWeek
By Jack Jordan Oct. 10 (Bloomberg) -- The ruble climbed for a fourth day against Bank Rossii's target dollar-euro basket as investors bet Europe's debt crisis will be contained, boosting demand for Russia's exports to the euro area. ...
The rising cost of insuring banks against default
The Guardian (blog)
During the 2007 credit crunch, bankers started to watch the credit default swaps (CDSs) quoted for their own banks and those of rival institutions. These CDSs are an indication of the price of buying insurance against default on the bonds issued by the ...
Default Myth Busting: Sorry Simon and James, the U.S. is not a Default Virgin
Business Insider
The consolidation/conversion of US revolutionary state debt into federal debt, which took place in the early 1790s, and which the authors refer to in the paragraph prior to the above quote, represented a US sovereign default. (For more on this event ...
Aust equities drive default growth
Financial Standard
By Elise Burgess | In Superannuation Australian shares influence 91% of overall default fund returns despite only holding one-third of super fund assets, according to research from Selecting Super and its research partner Rainmaker Information. ...
Britain gripped by dire financial crisis said to be 'worst ever'
Calculator
By Matt Fielding · October 9, 2011 · No comments According to the Governor of the BoE, the UK is in the grips of what is being called the worst financial crisis to ever hit Britain. As he announced an additional £75 billion QE, he also states that this ...
Greece Financial Crisis Creates Health Issues For Greeks
By The Huffington Post News Editors
"The way this is linked to the financial crisis is that injecting drug users do not have access to occasional employment or handouts or pocket money from parents," Kentikelenis said. Many, he noted, "resort to prostitution to cover the costs of the ...
The Full Feed from HuffingtonPost.com
The World Prepares for Greek Default | Andrew Busch
By admin
Over the last 48 hours, financial authorities are speeding proposals to shore up shaky global banks ahead of what appears to be a looming Greek default. Over. ... Citing two unnamed sources, the newspaper said the committee had become active as concerns mount that the problems in the euro zone could trigger a new financial crisis that would spread through the banking sector again.” Finally in China, the domestic arm of China's sovereign wealth fund (Central Huijin) is going to ...
Andrew Busch
Forget Dexia: Here Are Other European Banks Praying For The ...
By Simone Foxman
CONTAGION AHEAD: Dexia's just the beginning. ... Back in July, we took a list of the largest European banks by assets and compared their market cap, common equity, and total exposure toPIIGS debt (thank you for the bank statistics, EBA!). ...
Clusterstock
Sovereign Debt: Credit Default Swaps Are a 'Scapegoat' Says ...
Credit default swaps (CDSs) have emerged blinking from computers in ... part of the cause of thefinancial crisis, particularly in the collapse of Lehman Brothers. ...
www.cnbc.com/.../Credit_Default_Swaps_Are_Scapegoat_Ind...
Default & Recovery Database - expected risk | Moody's Analytics
Default & Recovery Database (DRD) provides comprehensive data on defaults, recovery from default, and rating changes (at both the security and issuer level) ...
mkmv.com/...and.../Default-and-Recovery-Database.aspx

Financial Crisis Breeds Health Crisis in Greece
Medscape
October 10, 2011 — The Greek financial crisis has led to worsened health outcomes, according to a study published as a letter online October 10 in The Lancet. Since 2007, Greece has experienced more financial turmoil than other European countries, ...

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