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

Monday, February 13, 2012

Why Greece and Portugal ought to go bankrupt

Why Greece and Portugal ought to go bankrupt
Financial Times
He will then have four years to rebuild the country from the rubble of a eurozone exit. It would be politically much riskier for him to stick to a programme that he himself says does not work, and that will keep his country in a depression for the ... 

Greece set to defy protesters and accept eurozone bailout deal
The Guardian
With eurozone leaders declaring it was time for Greece to put up or shut up and that Athens' promises could no longer be believed, Greece's two main political parties and the caretaker prime minister invoked apocalyptic scenarios for the country if the ...

The Guardian

Euro Zone Warms to 'Co-cos' for Banks
Wall Street Journal
The instruments, known as "contingent convertibles," began to get attention following the financial crisis and have been issued by a few banks. "Co-cos," as they are called, are sold as interest-bearing debt that has to be paid back.

Economic Outlook: eurozone prospects worsen
Financial Times
By Stephen Smith The contrasting state of economic growth in the eurozone and the US will be under close scrutiny this week as data releases are set to underline a gloomy backdrop in Europe to the political wrangling over Greece's bail-out.

Eurozone crisis: Greek plea for political support of new bailout
Scotsman
Failure to do so will leave Greece with little choice but to accept a disorderly default and a departure from the Eurozone, analysts say. “The consequences of disorderly default would be incalculable for the country – not just for the economy.

Scotsman

crippled euro zone faces a 'lost decade'
Sydney Morning Herald
BILLIONAIRE investor George Soros has predicted a lost decade for indebted countries in the euro zone, warning that weak growth and lingering political tension could shatter Europe's economic union even if Greece agreed to austerity measures.

Sydney Morning Herald

Euro zone concerns, tight monetary policy take toll on GDP
Economic Times
The latest data points suggest that in general the Euro zone economy contracted in the fourth quarter of last year. The UK economy contracted 0.2 percent in the fourth quarter of last year. Analysts predict the Euro zone will go into a recession this ...

Eurozone: Nice Rally, But Risk Still Palpable On Greek Death Spiral (EWG, VGK ...
ETF Daily News (blog)
In short, this program created a classic self-reinforcing positive-feedback loop for asset prices across the euro zone. Here is a look at the benefits that resulted: Increased demand for ECB funds stemmed liquidity risk among euro-zone banks.

ETF Daily News (blog)

Swiss central banker a Euro crisis Nostradamus?
Malaya
ZURICH - Nearly two decades ago, the man now likely to become the head of Switzerland's central bank foresaw the neighbouring euro zone's troubles in a doctoral thesis, saying the likes of Ireland, Italy and Greece would not be able to control their ...

What's really at stake in this crisis isn't Greece's identity but Europe's ...
The Guardian
The fact that Poul Thomsen of the IMF, the eurozone's poster boy Mario Monti, the markets and countless economists agree that more austerity will deepen Greece's depression without making the debt sustainable adds weight to her argument.

The Guardian

German Econ Min: Whether Greece Stays In Euro Zone Is In Its Own Hands
Capital.gr (press release)
FRANKFURT -(Dow Jones)- Whether Greece remains in the euro zone is in the country's own hands, Germany's economy minister said Sunday. Asked on German TV if Greece will remain in theeuro zone in the long term, Philipp Roesler said: "Greeks now have ...

Deflation or inflation - the next leg of the euro-zone crisis
Hong Kong Standard
We have recently heard stark warnings from George Soros, the International Monetary Fund as well as the World Bank about the possibility of a severe economic downturn in the euro zone. The head of the IMF, Christine Lagarde has suggested the world may...

Hong Kong Standard

Merkel and Sarkozy 'allowed to hijack' eurozone policy-making, says Anglo chairman
thejournal.ie
THE CHAIRMAN OF THE bank formerly known as Anglo has accused EU leaders of allowing Angela Merkel and Nicolas Sarkozy to “hijack” eurozone policy-making and says governments need to do much more to tackle the eurozone crisis.

Rioting engulfs Athens, buildings burn before vote
Bismarck Tribune
"By Wednesday, finance ministers from eurozone countries must finally approve the financing and support program for Greece," Venizelos said. "If that does not happen, and it is not at all certain that it will happen unless we raise to the occasion, ...

Currency Advice Now Essential For Investors
Homesgofast.com
The Eurozone crisis has made it now essential for overseas investors to take advice before purchasing abroad. The Uk economy has seen a surprisingly strong week, which has marginally improved the value of sterling. The major news this week was the Bank ...

Eurozone fears resurface on Wall Street
Boston Globe
The three main indexes each ended the week with a loss amid a disheartening euro debt picture. A general strike, protests, and political turmoil boiled over in Greece a day after the government reached a provisional deal on the terms of a new loan ...

Europe's crisis to remain a source of market volatility
gulfnews.com
By Himendra Mohan Kumar, Staff Reporter Abu Dhabi: Tools to resolve the lingering Eurozone debt crisis are on the table and a workable treaty could be ready by the end of the year, according to Markus Schomer, chief economist at New York-headquartered ...

BusinessDesk: The fate of Greece within the euro zone to be decided within ...
Interest.co.nz
The fate of Greece within the euro zone appears set to be decided within days. Time has run out. The Greeks have no one to blame but themselves, seemingly unable to agree on the measures demanded by their partners to avoid a costly default for the ...

Low-Interest Loans to European Banks Prompt Concern
New York Times
Professor Wyplosz said the central bank might be making the banking system more fragile by encouraging institutions to load up on risky assets, especially government bonds from troubled euro zone countries like Spain or Italy.

Greece, creditors end talks without full deal; FinMin to make case to eurozone
Washington Post
“It will determine whether the country remains in the eurozone or whether its place in Europe will be endangered,” he said. “There is no room for any other expediency: we must look Greeks in the eye, look at the national interest and the interest of ...

Companies brace for eurozone split
Business Times (subscription)
By EMILYN YAP (SINGAPORE) Companies may have no hold over the eurozone, but they are trying to get a grip on their exposures to the troubled region. From investment houses to energy firms, many are seeking legal advice or tapping risk models to protect ...

Budgets: The last cut is the deepest
Reuters
Bank of Japan Governor Masaaki Shirakawa last month said that he sees many similarities with Japan's balance-sheet recession and the deleveraging problems now facing the United States, the United Kingdom and the euro zone. It is a sobering thought that ...

More Progressive Philippines Will Be Given 'Investment Grade' Rating
Manila Bulletin
By ANDREW JAMES MASIGAN MANILA, Philippines — Two weeks ago, Indonesia got a credit rating upgrade from Moody's Investors Services—putting it at Baa3, restoring its status back to investment grade since the Asian financial crisis of the '90s.

Swaminomics: Is Germany trying to win World War III?
Economic Times
Wags looking at the Eurozone crisis say Germany is now winning World War III, without any weapons, through sheer economic domination of Europe. Hitler launched World War II demanding a little more lebensraum (living space) in Czechoslovakia and Poland.

Europe's Tobin tax distraction
Livemint
At last, European leaders have revealed their top-secret plan for solving the euro's crisis. And it is—drum roll —a version of the “Tobin tax”, a levy on financial transactions first suggested in 1972 by the Nobel laureate James Tobin.

Merkel leading Europe in wrong direction: Soros
MarketWatch
By Tom Fairless FRANKFURT (MarketWatch) -- US billionaire George Soros has criticized German Chancellor Angela Merkel's handling of the euro-zone's debt crisis, warning that leaders should boost growth in troubled states via capital injections rather ...

EFSF will provide sizeable part of Greek bailout
MarketWatch
By Tom Fairless FRANKFURT (MarketWatch) -- The euro-zone's temporary rescue fund will supply a "significant" portion of the funds needed for Greece's second bailout, and expects strong demand for its bonds from Asian investors, according to a preview ...

China tells banks to roll over loans
Financial Times
China's stimulus response to the global financial crisis saddled its provinces and cities with Rmb10.7tn ($1.7tn) in debts – about a quarter of the country's output – and more than half those loans are scheduled to come due over the next three years.

“Eurozone Unemployment Hits New Record” | Laitman.com
By admin.bb
In the News (from BBC News): “Unemployment in the eurozone hit a record high at the end of last year, the Eurostat agency has said. “The jobless rate in.
Laitman.com » Crisis

Perhaps the Eurozone needs a 'Silence Pact'? | Tutwa Consulting
By Andreas Freytag
The core problems of the eurozone (EZ) then were, and still are, a) the level of public debt in almost all member countries, b) disincentives through bail-outs by other governments and monetization of public debt by the ECB, c) the even greater ...
Tutwa Consulting

Greek ruling party obliterated by financial crisis | PoliPundit.com
By PoliPundit
Party discipline is much weaker at PASOK, [the Greek ruling party,] whose support has dived to 8 percent in the latest opinion from the nearly 44 percent it commanded when Papandreou led it into power in 2009. In two years, they've gone ...
PoliPundit.com

Environmental, Health and Safety News: Global Financial Crisis: A ...
By EHS Director
WSJ reports that "President Barack Obama's budget request to Congress on Monday will forecast a deficit of $1.33 trillion in fiscal year 2012 and will include hundreds of billions of dollars of proposed infrastructure spending, according to draft ...
Environmental, Health and Safety News

CRUNCH-TIME IN GREECE AND THE EUROZONE...
By Reliapundit
2 - Eurozone ministers say MPs must approve it before Greece receives €130bn (£109bn) in bailout funds. They are also demanding further budget cuts of €325m before Wednesday's meeting of the Eurogroup, when Brussels is due to decide ...
THE ASTUTE BLOGGERS

How stronger labour law could reduce inequality and solve the ...
By Owen Tudor
We held a seminar with the Foreign Policy Centre and the European Commission, assisted by Thompsons Solicitors on Friday, to launch a pamphlet called Single.
ToUChstone blog: A public policy...

Eurozone QE to send gold through the roof | FE Trustnet
By Anthony Luzio
Recent good news from the US won't be enough to wean the West off its reliance on stimulus measures, meaning the price of the precious metal is only going in one direction.
Fund news & research from FE Trustnet

NewsDaily: Schaeuble warns Greek promises no longer suffice
By Erik Kirschbaum
In a hard-hitting interview with the Welt am Sonntag newspaper, Schaeuble also said it is up to Greece whether the country can stay in the euro zone as part of its efforts to restore its competitiveness. "The promises from Greece aren't enough ...
NewsDaily: Top Headlines

Why the US mood is like 2008 now rather than 2009 « ArabianMoney
By Peter Cooper
Americans only feel the ill wind from the eurozone now and again when credit markets get jittery and take the risk trade off the table for a while. Otherwise news of a few jobs coming back to the US as China becomes less competitive is a cause ...
ArabianMoney

Is Greece facing disorderly default? « Lim Kit Siang
By Kit
So Greece is being financially supported by its eurozone peers as Europe's leaders, led by Germany's chancellor Angela Merkel and France's president Nicolas Sarkozy, desperately attempt to figure out how to fix the problems. But the ...
Lim Kit Siang

From the beach in Goa | The Big Picture
By Kiron Sarkar
Portugal, well the Euro zone will need to provide additional funding. Furthermore, a conversation between the German Finance Minister and his Portuguese counterpart, caught on an open mike, confirmed that Germany ie the Euro Zone, will ...
The Big Picture

Climateer Investing: "George Soros' 8 Bold Predictions From the ...
By climateer
1) That one or more countries will leave the eurozone within the year. ... Soros rejected this idea, but noted that the country's housing bubble has been pricked, partly as a result of the effects of thefinancial crisis here spreading to China.... .
Climateer Investing

Climax nears in Greek drama - InterAksyon.com
By Richard Hubbard, Reuters
Tortuous negotiations over a second bailout for Greece are set to come to a head on Wednesday, putting fragile market confidence to the test on the same day data is tipped to show the euro zone is entering a mild recession.
Interaksyon.com

Guest Post: The Eurozone Is Almost Out Of Options | ZeroHedge
Submitted byu Raoul Ruparel - head of economic research for Open EuropeThe Eurozone Is Almost Out Of Options Over the last few weeks, negotiations over a ...
www.zerohedge.com/.../guest-post-eurozone-almost-out-optio...

Eurozone crisis has brought a reluctant Germany to the fore - latimes ...
A European Germany finds itself, unwillingly, at the center of a German Europe. The country needs a lot of help from its friends.
www.latimes.com/.../la-oe-gartonash-germany-20120209,0,13...

Factbox: Euro zone debt crisis: coming events - Yahoo! Finance
From Yahoo! Finance: Following are coming events linked to the debt crisis in the euro zone: EUROPEAN UNION: February 20 - Eurogroup meeting of euro ...
finance.yahoo.com/.../factbox-euro-zone-debt-crisis-0959199...

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