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

Tuesday, November 22, 2011

Is the ECB destroying not just the euro, but the world as we know it?

The Mark-To-Market Amplification Of Financial DistressA nice phrase from my colleague Hyun Song Shin (pdf), describing what’s happening in Europe right now. . . . the creation of the euro had large implications even in US capital markets; and of course it suggests that the financial fallout of the euromess could be very large here as well. In short, the ECB could be in the process of destroying not just the euro, but the world.” Paul Krugman in the New York Times

BusinessWeek
Five-year credit-default swaps, which climb as creditworthiness perceptions worsen, rose to 593 basis points from 581 yesterday, according to data provider CMA. Hungary, which received an IMF-led bailout in 2008, is seeking renewed talks with the fund, ...
Critics of credit default swaps have got it wrong
Financial Times
By Conrad Voldstad There has been so much criticism of credit default swaps (CDS) of late that you would think no one was using them any longer. Yet today we see net open positions of $2900bn, up from $2400bn at this time last year. ...
'Boring' Rajoy Picked To Save Spain From Default
NPR
Mr. Rajoy faces the daunting task of reassuring jittery bond markets, saving his country from default, and putting people back to work. Lauren Frayer in Madrid sent us this profile of the prime minister designate. LAUREN FRAYER, BYLINE: Holiday ...
The global financial crisis and the BRICs
BBC News
There's no getting around it, the BRICs have come out of the global financial crisis remarkably well, especially China, whose diplomatic skills at the recent G20 Summit in Cannes impressed all who were there and left the American delegation rather ...
Jefferies Cuts PIIGS Exposure Another 50%
Wall Street Journal (blog)
By Melodie Warner Jefferies Group Inc. reduced its gross exposure to Greece, Ireland, Italy, Portugal and Spain by almost another 50% as the investment bank ramps up its campaign to dispel concerns about its European exposure. The investment bank said ...
Europe's leftist govts dwindle as financial crisis bites: Socialists drubbed ...
CanadianBusiness.com
He cited the cases of troubled governments being re-elected in Latvia, Estonia — a member of the eurozone — and Poland, and said as long as the public concludes the government is capable and taking the right approach to a financial crisis, it might ...
Bond Default Arbitrage Opportunity: Navios Maritime
Seeking Alpha
The shipping industry is a particularly interesting one to follow. Commodity prices and the supply/demand of ships can lend significant insight into how the industry will perform in the future. Additionally, drybulk shipping rates (BDI) and forward ...
Detroit City Council Meets To Discuss Financial Crisis
Huffington Post
Council President Pugh said, "so you're saying in the fiscal crisis we're in it might not make sense to give these tax abatements." Councilman Ken Cockrel added that the Council should not be "bullied" to stay on American Axle's timetable.
Financial Crisis Takes Toll on Social Justice Giving: Foundation Center
AdvisorOne
By Michael S. Fischer The global financial crisis has disproportionately affected grant makers who work on issues ranging from human rights to environmental justice, and their recovery remains in jeopardy, according to a report released last week by ...
Can austerity cure contagion?
Reuters Blogs (blog)
Contagion-Ex works by releasing a powerful dose of austerity on troublesome workers, reducing your risk of financial infection so your wealth can be preserved. It's easy to believe that this is what Europe's leaders are up to — after all, Mario Draghi ...
US Bond Risk Rises as Lawmakers Fail to Agree on Budget Cuts
BusinessWeek
Credit-default swaps on US Treasuries increased 1.5 basis points to 52.5, the highest since Sept. 29, according to CMA prices at 3 pm in London. That compares with 38 basis points on Oct. 28 and 64 at the peak of the country's debt-ceiling crisis in ...
Demands for taxes, royalties seen topping financial crisis as risks to mining
Las Vegas Review - Journal
"It's almost like a contagion. The key risk is an inability to plan." Resource nationalism, as the push by states is known, jumped to being the number one concern among mining executives this year, replacing capital allocation, Ernst & Young said in ...
Deutsche Bank Could Transfer Financial Contagion: Simon Johnson
San Francisco Chronicle
Nov. 21 (Bloomberg) -- You've probably never heard of Taunus Corp., but according to the Federal Reserve, it's the US's eighth-largest bank holding company. Taunus, it turns out, is the North American subsidiary of Germany's Deutsche Bank AG, ...
Possible Greek Solution: Two Drachmas
Wall Street Journal (blog)
Since uncertainty has been a major factor behind the contagion selling with which banks have responded to the Greek default risk, this would go a long way to limiting the wider fallout. All dealings in the Convertible drachma euro would require strict ...
Ackermann Says Europe Needs 'Firewall' to Stop Crisis Contagion
BusinessWeek
The financial crisis has exposed a number of deficiencies in the international monetary system, he said yesterday in his speech in Seoul. “Lack of effective discipline to avoid imbalances, excess reserve accumulation, some exchange-rate misalignments” ...
ECB Credibility vs. Contagion
Zacks.com
By Panel of Zacks Experts #1 Strong Buys in every issue. Average gain: +28% per year. ...
ECB's Nowotny: Financial Crisis Challenges Growth Model Of Russia, CESEE
NASDAQ
VIENNA -(Dow Jones)- The financial crisis presents a challenge to the current growth models of Russia and Central, Eastern and South-Eastern Europe, said European Central Bank governing council member Ewald Nowotny Monday. China, Russia and the region ...
Eurobonds Could Be Europe's Way out of Financial Crisis
ThirdAge
(AP Photo/Virginia Mayo) The European Commission chief wants to introduce joint eurobonds of the 17 euro nations as an effective way to tackle the financial crisis, an idea which puts him on a collision course with German Chancellor Angela Merkel. ...
Fitch affirms long-term rating at AA for J&K Bank
Economic Times
NEW DELHI: Fitch Ratings has affirmed its national rating of very low default risk with a stable outlook for Jammu and Kashmir Bank on the back of the government of India's support for the lender. "Fitch Ratings has affirmed Jammu and Kashmir Bank's ...
Supercommittee #FAIL: Why Won't America Learn the Lessons of Italy?
The Atlantic
Every time debt grows faster than GDP, the risk of financial crisis inches up. Conservatives can make fun of Italy all they want, but they're not the ones running deficits that flirt with double digits--and loudly proclaiming that it's better to run ...
Liquidity in Corporate Bond Market Drying Up
Morningstar.com
Even after the purchases, however, credit default swaps of Italy and Spain remain near record levels. And the contagion is spreading: CDS of other countries such as France, Belgium, and Hungary are also near record levels. ...
Fitch affirmed at 'BBB+' its long-term issuer default ratings of two Romanian ...
Balkans.com Business News
Fitch Ratings affirmed at 'BBB+' its long-term issuer default ratings of Banca Comerciala Romana SA (BCR) and BRD-Groupe Societe Generale SA (BRD.RO) on November 18, saying it expects Romania's top two lenders will benefit from continued support from ...
Egypt 5-yr CDS at 2-1/2 yr high on political violence
Reuters
LONDON Nov 21 (Reuters) - The cost of insuring Egyptian sovereign debt against default for five years surged 60 basis points on Monday to its highest in 2-1/2 years as deadly clashes in Cairo between protestors and government authorities entered its ...
Inflation targeting and the financial crisis
rabble.ca
By Jim Stanford Many long-held tenets of neoclassical orthodoxy have fallen by the wayside in the past three years, but perhaps one of the biggest dominoes that is at least teetering precariously (if not fully tipped over) is the consensus that ...
European Commission: Financial Crisis Could Be Staved Off By ...
By The Huffington Post News Team
BRUSSELS -- The European Commission, the EU executive, believes that the joint issuing of eurobonds by the 17 euro nations would be the most effective way to tackle the financial crisis, according to a draft paper seen Monday. The study by the European Commission, the EU's executive... BERLIN (AP) -- Greece will receive its next batch of bailout loans in time to avoid a disastrous default, the finance minister said Tuesday, as... European Debt Crisis: Financial Troubles Pose ...
Europe on Huffington Post
Deciding the Energy Future by Default – The Great Energy Challenge
By Scott Bittle and Jean Johnson
Welcome to the world we're building by default. Or, to be more precise, welcome to the world that other countries are building while we stand by squabbling and splitting hairs. One of the first things students in business schools and public ...
The Great Energy Challenge
Detroit City Council To Reveal Financial Crisis Plan
By The Huffington Post News Editors
DETROIT, Mich. (WJBK) - The Detroit City Council is expected to release its financial crisis plan Monday morning.
The Full Feed from HuffingtonPost.com
As financial crisis for public schools worsens, OUSD cuts almost 90 ...
By Mariel Waloff
As parents, students and teachers at Oakland schools grapple with the school board's recent decision to close five elementary schools, the Adult and Career Education program in the district has already come to terms with cuts that closed two ...
Oakland North
Occupiers to Pledge to Default on Student Loan Debt | The Lonely ...
By Lonely Conservative
Many in the Occupy mob are ready to take a pledge to stop paying back their student loans. Note, the majority of student loans are backed by the federal ...
The Lonely Conservative
1 Through 30 – The Coming U.S. Financial Crisis By The Numbers
By wmw_admin
We know the U.S. economy is in trouble but these 30 facts illustrate just how it could be in terminal decline.
The Truthseeker
Matrix » [Ritholtz in WaPo] What caused the financial crisis? The Big ...
By Jonathan J. Miller
My friend Barry Ritholtz penned an especially terrific column published in WaPo back on November 5th “What caused the financial crisis? The Big Lie goes viral.” that is worth reading if you haven't. And apparently many have since there are ...
Matrix
STRATEGIC DEFAULT IS NO MORAL DILEMMA FOR THE RICH ...
By Neil Garfield
Fisher Island, the Miami Beach multimillionaire enclave and the 43rd most expensive ZIP code in the country, has a whopping 20.5% foreclosure rate, with 38 out of 184 active loans in default. Rosemary Beach, a posh planned ... They not only stole the silver platter the Thanksgiving turkey usually sits on, but the only silver I had managed to hang onto as a means to buy a loaf of bread if the financial crisis predicted for 2012 becomes a reality. That's the only real loss, 'cause there isn't ...
Livinglies's Weblog
Commentary: Greece's Default Dilemma | The National Interest
Some have pointed to Argentina's default on its loans in 2001 and the ... These differences suggest the outcome of a sovereign default for Greece could be ...
nationalinterest.org/.../greeces-default-dilemma-6150?page=sh...
Default Definition in Legal Definitions - Legal Terms Dictionary ...
Default definition: A failure to perform a legal duty. For example, a default on a mortgage or car loan happens when you fail to make the loan payments on time, ...
legaldefinitions.co/default.html

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