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

Wednesday, November 16, 2011

Euro Crisis Contagion of Epidemic Proportion

Euro Crisis Contagion Reaching Epidemic Proportion
Wall Street Journal (blog)
By Martin Essex The euro zone's financial crisis — and there's now no other word than crisis for the current trauma — is poised to deepen further. Contagion has already begun to spread from the “peripheral” euro-zone countries, such as Italy and ...

EURO GOVT-Contagion puts top-rated bonds under pressure
LONDON, Nov 15 (Reuters) - Contagion from the euro zone debt crisis spread on Tuesday with top-rated issuers' premiums over safe-haven Germany hitting new highs and Italian government bond yields again topping 7 percent, a financing level seen as ...

Financial Crisis Hits NATO Funding
Voice of America
November 15, 2011 Financial Crisis Hits NATO Funding Al Pessin | Brussels Europe's economic problems are making it even more difficult for the continent's governments to fund often unpopular defense programs. That is threatening to hurt the NATO ...
Greek leader says debt deal must pass soon to avoid default
USA Today
Greece has been gripped by a vicious financial crisis for the past two years. In return for an initial €110 billion bailout agreed on in May 2010, the country imposed harsh spending cuts, including slashing pensions and salaries and increasing taxes. ...
American Express posts higher default rate for October, but rate of late ...
Washington Post
DEFAULT: American Express wrote off $50.6 million, or 2.7 percent, of balances on an annualized basis, in October, up from 2.3 percent in September. The rate is sharply below the 4.7 percent charge-off rate a year ago. LATE PAYMENTS: Payments on just ...
Borrowing costs leap as contagion fears engulf Spain
Financial Times
The fear of contagion – that the eurozone debt crisis will spread to infect the region's bigger economies – has intensified. Worries about the Spanish general election this weekend and concerns about the economy have returned. ...
Fitch raises default rating for Hovnanian
Fitch Ratings on Monday raised its default rating for Hovnanian Enterprises Inc., but said it remains concerned that the homebuilder does not have a large enough cash cushion should the housing market weaken further. The ratings firm boosted ...
Iowa firms default on job-creation pledge after receiving tax credits
Fort Dodge and Charles City: VeraSun promised to create 83 jobs under separate contracts, but the company went bankrupt in 2008, triggering a default this year. The Charles City site received $4.89 million in credits; Fort Dodge received $9.4 million. ...
Newt Gingrich Called the Financial Crisis
By Dan Freed 11/15/11 - 12:20 PM EST NEW YORK (TheStreet)--What do Nouriel Roubini, John Paulson, Meredith Whitney, and...um...Newt Gingrich have in common? At least this is what Gingrich, the flavor of the month in the Republican presidential primary ...
Oil Up on Economic Data Despite EU Contagion Worry
Fox Business
Evidence of contagion came as Italian government bond yields again topped 7 percent, a financing level seen as unsustainable. US stocks were higher, but also in choppy trading, led by gains in technology shares after concern about Europe had seemed to ...
Asian Stocks Fall as Default Swaps Rise on European Debt Concern
San Francisco Chronicle
15 (Bloomberg) -- Asian stocks fell for the first time in three days and credit-default swaps rose after a surge in Italian borrowing costs intensified concern that Europe's debt crisis will worsen. The MSCI Asia Pacific Index slumped 0.9 percent as of ...
Credit card defaults, late payments stabilize
The Associated Press
The top six credit card-issuing banks posted mixed results for their customers' payment behavior in October, with three reporting small increases in default rates and three reporting slight declines. Similarly, four of the banks reported drops in the ...
Credit Crisis Defaults: Will Rating Services Warn You in Time?
Elliott Wave
In 2008, we all saw how rapidly a financial crisis can spread. And looking at the MF Global collapse we're reminded of how quickly a firm can go from seemingly good shape to "good-bye." As mentioned above, a big bet on European sovereign debt was the ...
Americans' Perception of Greece Plummets and Travel Plans Negatively Affected ...
MarketWatch (press release)
Post-financial crisis, this dramatically declined to only 17% with 49% stating they currently have a somewhat to extremely negative perception of Greece. Overall, 75% believe the financial crisis has had a somewhat to extremely negative impact on ...
Obama Should Name Unity Government to Tackle Financial Crisis
Daily Beast
Should the United States follow the dramatic examples of Italy and Greece and deal with a looming fiscal crisis by installing a national unity government? The response to such changes in two of Europe's most deeply troubled economies has been ...
TEXT-S&P report:US residential active default rate improved in 3Q
Loans originated in 2006 and 2007 are still the worst performers, but 2006-vintage mortgages have the highest cumulative default rates. Standard & Poor's cumulative default metric aggregates two types of defaults: active and closed. ...
S&P/Experian Credit Default Indices
PR Newswire (press release)
15, 2011 /PRNewswire/ -- Data through October 2011, released today by S&P Indices and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, showed that first mortgage default ...
The surprising history of Italy and sovereign default
Telegraph.co.uk (blog)
By Andrew Lilico Economics Last updated: November 15th, 2011 There is a great deal of wild talk in financial markets about how Italy is "bankrupt", about how default there is "inevitable", and how it would be an Italian default that brought down the ...
Eastern European CDS Spotlight Contagion Fears - Fitch
Wall Street Journal (India)
By Katy Burne Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--The cost of protecting the debt of European sovereigns and financial institutions against default has surged in recent trading sessions, with a notable increase in protection costs tied to ...
Bundesbank's Dombret Says SIFIs Must Be Able to Default Orderly
15 (Bloomberg) -- Bundesbank board member Andreas Dombret said policy makers must develop instruments that would allow systemically important financial institutions, so-called SIFIs, to default in an orderly fashion. “Failures are part and parcel of a ...
Italy nominates new PM to help solve financial crisis
14 (Xinhua) -- Former EU commissioner Mario Monti was appointed Italy's prime minister-designate Sunday to form an emergency government to lead the country out of its debt-driven financial crisis. Monti, a highly respected economist, accepted a formal ...
Ignorance and the Financial Crisis - Coordination Problem
By Peter Boettke
Peter Boettke| Jeffrey Friedman and Wladimir Kraus's Engineering the Financial Crisis combines careful historical scholarship with a sophisticated theoretical understanding of the structural ignorance that plagues human affairs. Politics ...
Coordination Problem
Post Office Near Default? Losses Mount To $5.1B « CBS Dallas ...
By ktvtdeborah
The U.S. Postal Service said Tuesday it has lost $5.1 billion in the past year, pushing it closer to imminent default on a multibillion-dollar payment and to future bankruptcy.
CBS Dallas / Fort Worth
Detroit Council Cancels Break Amid Financial Crisis « CBS Detroit
By mfusinski
The Detroit City council has cancelled its holiday recess amid reports that, without drastic cuts, the city will run out of cash in April.
CBS Detroit
Fuel Fix » Asia slips on Europe contagion fears
By FT.com - Energy
... Europe Markets: Europe stocks drop on Italy, Greece worries · UPDATE 1-Australia's Woodside Q3 output slips; talks on Sunrise. Equities edged lower after a surge in Italian borrowing costs fed concerns about Europe's debt crisis, despite ...
Fuel Fix
By Cullen Roche
THE EMU YIELD CONTAGION WORSENS… 15 November 2011 by Cullen Roche 13 Comments. This is getting more interesting with every day. As the ECB is increasingly pressured to stop the Eurozone crisis with massive bond buying, the ...
Eurozone Crisis contagion spreading to the core - Wall Street ...
Crisis contagion spreading to the core Reuters Nov 15, 2011 – 8:25 AM ET | Last Updated: Nov 15, 2011 8:27 AM ET LONDON — Contagion from the eurozo...
Bears Chat at The Wall Street Examiner
Technocrats can't cure the contagion | James Saft
By James Saft
The prospect of two new avowedly technocratic governments and fresh pledges and plans for austerity proved not enough to stem contagion in the euro zone, as the financing drought spread beyond Greece and Italy to Spain. Spanish 10-year bond yields climbed above 6 ... The risible bending over backward to make Greece appear not to default under the most recent deal is an example, and actually serves to make Weidmann's point as well. The moral hazard of an ECB printing ...
James Saft
Think Emerging Markets Are Safe From The Contagion?
By Joe Weisenthal
Two good charts from Morgan Stanley, designed to show that emerging markets are not immune to the developed-market deleveraging. The first shows the channels by which developed market problems could hit emerging market. ...
Business Insider

Post office near default? Losses mount to $5.1B
The Associated Press
WASHINGTON (AP) — The US Postal Service said Tuesday it has lost $5.1 billion in the past year, pushing it closer to imminent default on a multibillion-dollar payment and to future bankruptcy as the weak economy and increased Internet use drive down...

johnmpoole.com: Warren Buffett on the deficit: spending has to come down; we overpromised; you deal with finite resources: "spending is going to have to come down. we are a very, very, very rich family. we have $120,000 of gdp per household in this country. it's fabulous. . . . even a rich family can promise too much. in the end, you deal with finite resources. and it's easy to promise. and can you overpromise. and we overpromised."
Views from under the Palm

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