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

Saturday, December 10, 2011

A Gruesome Global Recession - Chaos about to Descend upon Europe

Views from under the Palm - johnmpoole.com: Europe’s disastrous summit--I'm with Felix: "'It all adds up to one of the most disastrous summits imaginable. . . the dream of European unity is dissolving in real time, as the eyes of the world look on in disbelief. Europe’s leaders have set a course which leads directly to a gruesome global recession' . . . the chaos about to descend upon Europe."

Bill Jamieson: 'Renegotiation of our membership is the very least to which we ...
Scotsman (blog)
But when faced with toxic contagion, being isolated is surely best. In this momentous summit, two issues dominated: the eurozone sovereign debt crisis which could trigger a financial cataclysm; and changes to the constitutional architecture of the EU. ...
Australian And NZ Dollars Slide On Eurozone Debt Concerns
NASDAQ
Risk appetite waned after the European Central Bank President Mario Draghi downplayed expectations of massive bond buying program, insisting that the eurozone's existing bailout facility should remain the main tool to fight bond market contagion. ...
Eurozone crisis: live blog
Financial Times (blog)
Second, the decision to accelerate the entry into force of the European Stability Mechanism (ESM) treaty, which will help bolster the firewall against financialcontagion. Third, the commitment by EU member states to provide additional resources to the ...
Growth bonds a win-win for troubled eurozone
Financial Times
Sir, The eurozone is in serious trouble. Panic has grown as creditors search desperately for a safe haven, and corrosive contagion risks spreading unchecked. Rating agencies act pro-cyclically as usual, helping to deepen the crisis. ...
Euro crisis: we are rebuilding the ship that sank
Telegraph.co.uk (blog)
It is no coincidence that the PIIGS countries, as others have pointed out, have had very different public debt profiles in the last ten years – some spendthrift, some thrifty – but in all of them heavily leveraged economic growth has masked steadily ...
AG to consider need for referendum - Kenny
RTE.ie
Mr Kenny said the meeting had increased the firewall opportunities to prevent contagion from the Greek debt crisis from spreading to bigger economies like Italy and Spain. He welcomed the decision to bring forward the permanent EU bailout mechanism, ...
European Leaders Give Markets What They Wanted, For Now
Fox Business
As was widely predicted, European leaders meeting at a critical summit in Brussels forged an agreement early Friday to impose more centralized fiscal discipline across the eurozone in an effort to contain Europe's two-year-old debt crisis and, ...
Why the European Central Bank Has To Stop the Euro-Crisis—And Why It Won't
The Plank on TNR.com (blog)
After two years of kicking the can down the road, contagion from the continent's debt crisis has begun to infect Europe's core. Indeed, the credit rating agency S&P recently threatened to downgrade the credit ratings of the entire Eurozone due to the ...
The Global Depression/Recession of 2012: Where the US and the World Are Headed
Minyanville.com
Lenders are stuck with bad sovereign loans and there isn't enough money to bail them all out, much less the PIIGS. The thing to remember about the eurozone is that it's not just sovereign insolvencies that is their problem. ...
These Are The 10 Big Issues At The Heart Of The Euro Crisis
Business Insider
It used to be the Greece, then it was the PIGs (Portugal, Ireland, and Greece), then it was the PIIGS (Portugal, Italy, Ireland, Greece, and Spain), and now it seems that the entirety of the eurozone is at risk. Right now, EU leaders are trying to ...
6 ETFs for the European Union Summit
Minyanville.com
Eurozone members and other European members are looking to make another $266.73 billion available to the International Monetary Fund, so those funds can be loaned out to the PIIGS and other problem children in Europe. Already the proceedings are off to ...
The Fate Of Emerging Market ETFs In 2012
Seeking Alpha
Contagion containment has also damaged the prospects for emerging market companies to export their wares to the eurozone. That said, one cannot explain 2000-3000 basis point differences in performance between emerging market stocks and US stocks by ...
EU Crisis: ECB Cuts Rates, but Is It Enough?
Motley Fool
Instead, the ECB says the eurozone's EFSF rescue fund should remain the main tool to fight bond market contagion, despite the limits of its leverage. He added that it would be illegal for the ECB or other central banks to lend money to the IMF to buy ...
Merrill Lynch: Lebanon should cut interest rates to support budget
The Daily Star
Among the major issues threatening Europe is “continued policy paralysis, pressure on banks to restrict borrowing and raise its cost as well as a potential contagion to other regions from eurozone deleveraging,” O'Neill said. “A persistent failure to ...
3 Lessons You Must Learn From the Europe Mess
Investorplace.com
Some of the pain has already been felt by investors who had accounts with Jon Corzine's MF Global, now bankrupt from chasing higher-yielding bonds in the Eurozone. After a lifetime in high office and at Goldman Sachs, Corzine must have thought that if ...
UKLabour: Cameron has chosen isolation when he should have been building ...
Labour Party
"The result is we now face the worst of all worlds – no action to stop contagion spreading in the eurozone, countries simply piling austerity on austerity with no plan for the growth and jobs that are essential to get deficits down, and a sidelined ...
Full text: Letter from Angela Merkel and Nicloas Sarkozy on the European debt ...
Credit Writedowns
We will accelerate the setting of the permanent intergovernmental European Stability Mechanism which should be effective in 2012 to better address any future threats to the stability of the Eurozoneas a whole, including through the risk of contagion ...
EU Leaders Under Increased Pressure After ECB Draws Line
DailyFX
Aggressive action needs to be taken to address the Eurozone crisis and investors will be much less patient with any promises of budget stabilization, austerity measures or fiscal integration. Anything short of an immediate injection of ample liquidity ...
S&P 500's big week ends with a whimper
Financial Times
The financial sector of the S&P 500 rose 1.7 per cent, handily outperforming its peers, with those stocks most sensitive to eurozone contagion fears performing best. Morgan Stanley climbed 5.5 per cent to $16.38 for one of the best performances in the ...
European crisis puts Canadians at elevated risk
TheChronicleHerald.ca
OTTAWA — The Bank of Canada is warning of a global epidemic of contagion spreading from Europe, saying Canada's economy and financial systems are already being affected and risks of further damage are elevated. The central bank's semi-annual financial ...
Banks are preparing for a Euro collapse, are you?
Commodity Online
While market and media attention is on the Eurozone and euro crisis the real risk of a systemic crisis remains. The risk of a 'Lehman Brothers' banking failure and consequent global financialcontagion and failure of the banking system rises every day. ...
What happens in Europe doesn't stay in Europe
Aljazeera.com
The debt crisis in the eurozone is far from 'just a European affair', author says. New York, New York - Some years back, the Comedy Channel featured a map illustrating how most Americans see the world. The biggest part of it was pictured as "US"; ...
HK may need stimulus if crisis spreads
GFS News
Hong Kong may have to consider extraordinary measures such as reactivating the contingent backstopping of bank capital if financial contagion from the eurozone crisis spreads to its shores. In an article IV consultation with the jurisdiction, ...
Peter Switzer: SMSFs Are Doing 'Pretty Well'
Ninemsn
... strategy of brinkmanship aimed at remaking the eurozone in Germany's likeness." Merkel is seen as a new age 'iron maiden' ? a Mrs Bismarck, if you like ? who has been whipping her PIIGS(Portugal, Ireland, Italy, Greece and Spain) into shape. ...
Investors Disappointed by ECB Rate Cut, Draghi's Comments
International Business Times
Financial markets slumped as investors believed the measures announced by the ECB were not sufficient to stabilize the liquidity problems in the Eurozone. Wall Street declined with DJIA and S&P 500 losing -1.63% and -2.11% respectively. ...

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