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

Thursday, November 10, 2011

Market Selloff: Contagion Spreading

Market Selloff: 'Contagion Spreading; They've Got to Stop This'
CNBC.com
The contagion is spreading. They've got to stop this," said Marc Chandler, Brown Brothers Harriman chief currency strategist. "The French bond spread to the German bund is at a new high. Three month Libor is at its highest level in more than a year. ...

US Bank Default Swaps Increase on Italian Contagion Concern
BusinessWeek
9 (Bloomberg) -- Credit-default swaps on the biggest US banks climbed as yields for Italy, the world's third biggest sovereign borrower, rose to euro era records and stoked concern that Europe's fiscal crisis is accelerating. ...
Fears of Italian default cause stock drop
Washington Post
The Dow Jones industrial fell more than 3 percent Wednesday on fears that Italy's debt problems may be uncontrollable. (Nov. 9) (/The Associated Press) Correction: Clarification: SuperFan badge holders consistently post smart, timely comments about ...
65% Chance Banking Crisis by End November: Think Tank
CNBC.com
“The spreads applied to the debt of all PIIGS increase with yields on Italian bonds [cnbc explains] reaching 7.3 percent. In a second contagion effect, depositors in Spain and Italy fear a banking crisis in their own countries, which end up creating a ...
Cameron Says Italy Borrowing Costs Becoming Unsustainable
San Francisco Chronicle
Cameron is concerned that that the sovereign credit crisis sweeping Europe's southern fringe may hurt Britain's growth prospects, tipping a fragile economy back into recession for the second time in three years. Without a direct say in euro-area policy ...
Italian Struggles Send US Banks Down On Fears Of Contagion
Wall Street Journal
The firm has said its positions contain no credit-default swaps. JP Morgan Chase & Co. (JPM), the largest US bank by assets, said its exposure to Italy at the end of September included $6.1 billion of sovereign trading risk, which includes ...
Fears of Italian Default Tank Stocks
Norwich Bulletin
The Dow Jones industrials fell more than 3 percent Wednesday on fears that Italy's debt problems may be uncontrollable. (Nov. 9) For the first time ever, the federal government launched a nationwide test of the emergency alert broadcast system. ...
Greek Half-Default Leaves Trillion Dollar Market in Limbo
Gold Seek
The Asian Financial Crisis had ties to derivatives, as did the housing market. Bailouts in each case were the temporary solution to stem complete failure of the largest insurance market on earth. Going forward, the market for credit default swaps could ...
European financial crisis could break up euro, says Alistair Darling
The Guardian
Alistair Darling says the European financial crisis could spell the break-up of the euro. Photograph: Murdo Macleod for the Guardian The economic crisis facing Europe has become far worse than the banking crisis of 2008 and will see the break-up of the ...
Summary Box: Metals fall after European financial crisis is stoked by interest ...
Washington Post
EUROPEAN WORRIES: Metal fell on growing concerns about the European financial crisis. Borrowing costs in Italy rose and talks collapsed in Greece on forming a new government. CROPS DOWN: Corn for December delivery fell 4.5 cents Tuesday, or less than 1 ...
Markets Fearing Contagion
RTT News
(RTTNews) - The major US index futures are pointing to a sharply lower opening on Wednesday, with sentiment deteriorating following a surge in Italian bond yields above the 7 percent level, a high for the euro area. The brief rally sparked by the news ...
Brazil willing to help IMF to tackle European financial crisis
Washington Post
Since the global financial crisis began in 2008, Mantega and other leaders from developing nations have fought for reforms in the IMF, World Bank and other multilateral institutions that would take into account the growth of emerging nations such as ...
Gold Over EUR 1300 - On Way to 'Infinity' on Eurozone Contagion?
Business Insider
Gold remains near a seven week high and has risen to above EUR 1305/oz due to the deepening Eurozone crisis and contagion risk. Deepening geopolitical tensions regarding Iran, Israel and the western world has led to oil rising for six days in a row now ...
Treasurer Wayne Swan urges leaders to address financial crisis
The Daily Telegraph
Source: The Courier-Mail WAYNE Swan has called on world leaders to unite and urge Europe to "quickly" address the financial crisis, which is threatening to drag the world into a recession. In Honolulu to attend the Asia-Pacific Economic Cooperation ...
Lesson from Iceland's 2008 Financial Crisis: Let Banks Fail
The New American
Portugal, Ireland, and Spain — the other three of the so-called PIIGS EU member-states — are enduring their own woes, such as downgrades of sovereign debt and corresponding jumps in the interest rates on government bonds. ...
Why Not Default
Citizen Economists (blog)
In fact, the government guarantee of repayment is why default was taken off the table as an option: the government didn't want taxpayers to take it in the shorts. Neo-con bomb-lobbing aside, Obama's plan is pretty terrible. ...
CME Group Sets Monthly Record for Cleared OTC Interest Rate Swaps and Credit ...
MarketWatch (press release)
9, 2011 /PRNewswire via COMTEX/ -- CME Group, the world's leading and most diverse derivatives marketplace, today announced that it set new monthly records for clearing interest rate swaps (IRS) and credit default swaps (CDS). For the month of October, ...
TEXT-Fitch:Significant performance variations in structured credit
Reuters
"The sub-sectors with high obligor or asset type concentration have suffered substantially more in the past four years since the onset of the credit crisis". SF CDOs are concentrated in a few underperforming sectors and have consequently suffered. ...
Risk of UK default set to soar if Italy defaults
Telegraph.co.uk
The risk of a British default has soared alongside the fears that Italy may not be able to service its debt, analysts have warned. At the moment the price of insuring Britain's debt - through credit default swaps - implies a 9pc chance of default. ...
Fed's Tarullo:Capital Regulation Most Important Element of Prudential ...
Wall Street Journal
The credit crisis showed the dangers of an overleveraged financial system and changes are required to prevent another crisis. There is now increased emphasis on market discipline, liquidity regulation and more effective supervision, in addition to ...
Moody's warns of Lehman-like contagion
Sydney Morning Herald
The US economy could be hurt by Lehman-like financial contagion if the euro-zone debt crisis engulfs major European countries such as Italy, Moody's Investors Service said overnight. That is still not the assumption adopted by the ratings agency, ...
Asia-Pacific Bond Risk Falls, Credit-Default Swap Prices Show
BusinessWeek
9 (Bloomberg) -- The cost of protecting Asia-Pacific corporate and sovereign bonds from default decreased, according to traders of credit-default swaps. The Markit iTraxx Japan index fell 3 basis points to 175 basis points as of 9:23 am in Tokyo, ...
TEXT-Fitch afrms HSBC France at 'AA';outlook stable
Reuters
Nov 09- Fitch Ratings has affirmed HSBC France's (HSBC FR) Long-term Issuer Default Rating (IDR) at 'AA', Short-term IDR at 'F1+' and Viability Rating (VR) at 'a'. The Outlook for the Long-term IDR is Stable. A full list of rating actions is below. ...
Italian contagion pushes Spanish spreads to near-record 414 basis points
Credit Writedowns
But now, the degree of distrust is such that the financial crisis threatens to overwhelm euro zone leaders. If the comparison is Italy, the punishment for Spanish public debt is lower. However, if the comparison is with Spain itself, the conclusion is ...
Financial Crisis, Jobs Dominate Spanish Candidates' Debate
Latin American Herald Tribune
MADRID – Spain's financial crisis and the 5 million workers it has left unemployed was the focus of the only electoral debate between the two leading candidates for the Nov. 20 general elections, Socialist Alfredo Perez Rubalcaba and the conservative ...
Study: Financial Crisis Could be Hurting Senior Citizens
KSAX
The growing financial crisis could be having a negative impact on the health of American seniors. A study published in the Journal of Studies on Alcohol and Drugs looked at people over the age of 65. It showed seniors with money problems were 30 ...
Dancing with Contagion | Credit Writedowns
By Marc Chandler
Dancing with Contagion. News | Marc Chandler | 9 November 2011 07:30. BBH CurrencyView. Markets have shifted back to crisis mode amid uncertainty over Italian economic reforms; Three likely scenarios remain after Berlusconi's ...
Credit Writedowns
Italy's financial crisis deepens as Berlusconi exits – Business 360 ...
By susepalk
London (CNN) -- Italy's bond yields passed 7% Wednesday morning, breaching a psychological point at which markets consider countries at risk of being unable to fund themselves.
Business 360
The Brian Lehrer Show: Phil Angelides on the Financial Crisis ...
Chairman of the Financial Crisis Inquiry Commission and former two-term California State Treasurer Phil Angelides discusses the global financial crisis the ...
The latest stories from www.wnyc.org
Market Selloff: 'Contagion Spreading; They' - CNBC.com
Fears that Italy, the world's third largest debtor nation, cannot afford its obligations shook world markets, sending investors into the relative safety of the U.S. dollar and Treasurys.
CNBC Top News and Analysis
US Politics | AMERICAblog News: The Italian financial crisis, the ...
By Steve Kyle (NY)
And if they did go ahead and buy some Italian government bonds to show they meant business, then they would be able to make a profit on them once it became clear that nobody needs to be afraid of a default. Why should Americans care? ...
US Politics | AMERICAblog News
UBS: Here Are The 19 Countries Most Likely To Default
By Mamta Badkar
With the the turmoil in Italy, Ireland  is having a harder time convincing markets and investors that it could escape contagion. Meanwhile, Greece ... As the European debt crisis continues, we drew on UBS analyst Andrew Cates' aggregate balance sheet risk index to provide a snapshot of the financial fragility of countries that look most likely to default. The factors that ... The least effected country of the financial crisis in Canada.... still rated #15 in the work most likely to default. Where you ...
Clusterstock
European financial crisis could break up euro, says Alistair Darling ...
Former Labour chancellor says economic turmoil worse than 2008 crisis and says EU leaders are 'constantly behind events'
www.guardian.co.uk/.../european-crisis-euro-alistair-darling

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