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

Thursday, April 19, 2012

European Banks Risk New Global Financial Crisis, IMF Warns

European Banks Risk New Global Financial Crisis, IMF Warns
Wall Street Journal (blog)
By Ian Talley European banks risk creating a new global financial crisis as they shrink their balance sheets by more than $2 trillion through the end of next year, the International Monetary Fund said Wednesday. Without careful oversight by euro-zone ... 

Euro-Zone Swings to Deficit
Wall Street Journal
By CHRISTOPHER LAWTON And CHRISTOPHER BJORK FRANKFURT—The euro-zone'scurrent account swung from a surplus to a deficit in February, European Central Bank data published Wednesday showed. The current account shifted to a deficit of €1.3 billion ($1.71 ...

GLOBAL MARKETS-Euro zone tensions boost German debt, sterling jumps
Reuters
Euro zone worries send German borrowing costs to record low * Sterling jumps as BoE signals inflation concerns rise * Share markets weaken, earnings growth hopes limit falls By Richard Hubbard LONDON, April 18 (Reuters) - Fears of a resurgence in the ...

Euro Crisis Inspires Fresh Worries Of Threats To Global Economy
Huffington Post
If the members of the eurozone could simply agree to arm their impotent central bank with the authority to sell bonds backed by the full faith and credit of member countries, the crisis would ease. The central bank could backstop the weakest countries ...

Euro zone's Slovenia hit by big strike over cuts
Reuters
The strike, due to last one day, closed schools, kindergartens, libraries and other public institutions in the latest sign of public unease across the 17-member euro zone over drastic spending cuts to tackle the sovereign debt crisis.

Eurozone crisis deepens and tensions rise within European Union
The Guardian
The outlook for the eurozone took a turn for the worse on Wednesday after data showed the economy deteriorating in Italy and Spain and the Portugese prime minister refused to rule out the need for a second bailout. Stock markets tumbled across Europe ...

The Guardian

Eurozone 'Could Easily Flare Up Again' IMF Warns
HispanicBusiness.com
The International Monetary Fund (IMF) raised its global growth forecast for 2012 and 2013 on Tuesday but warned that the world economy remained "very fragile," largely because of the eurozone's lingering debt crisis. The global forecast for this year ...

HispanicBusiness.com

Why the Euro-Zone Will Survive the Crisis, Miserably
Wall Street Journal (blog)
What that means for the present crisis is that while there are forces pulling the euro zone apart, there are also forces holding it together, and the latter will (probably) outweigh the former. ”Adjustment will occur,” he writes.

Oncor Bonds Show Energy Future Contagion Risk: Corporate Finance
Bloomberg
Oncor's Baa1 rating was put on review for downgrade in February by Moody's Investors Service, which cited contagion risk from Energy Future Holdings and the parent's reliance on its units to repay its debt. Dallas-based TXU was taken private in 2007 ...

Bank Of Israel's Fischer: Euro-Zone Exit Would Be "Extremely Costly"
Fox Business
WASHINGTON – It would likely be "extremely costly" for a country to leave the euro zone, Bank of Israel Governor Stanley Fischer said Wednesday at the International Monetary Fund. The benefits of belonging to the euro zone are extensive, ...

Euro zone debt fears pressure euro, shares
MSN Money
The euro zone blue-chip Euro STOXX 50 index, which saw its biggest daily gain of the year on Tuesday, reversed early losses to be up 0.1 percent at 2429.26. The FTSE Eurofirst index of top European shares was largely unchanged around 1052.90.

COMMODITIES-Broad decline as euro zone worries resurface
Reuters
Corn, wheat drop to three-month lows * Oil markets drop, US dollar stronger * Natural gas rises By Jeanine Prezioso NEW YORK, April 18 (Reuters) - Commodity markets dropped broadly on W ednesday, reversing the previous day's gains as renewed euro zone ...

Brent stable at $118 as euro zone concerns ease
Reuters
Worries about the euro zone debt crisis flaring up again were eased after a Spanish bill auction was met with strong demand on Tuesday. But data on Wednesday showing bad loans at Spanish banks at their highest level since October 1994 underscored the ...

Euro zone debt fears ease, German bond sale eyed
MSN Money
Strong demand at a Spanish bill auction on Tuesday soothed fears of a flare up in the euro zonecrisis, but the rise in short-term borrowing costs underscored the challenges still facing the highly indebted country. Spain will also auction two- and ...

Euribor rates fall to fresh 21-month lows
Reuters
FRANKFURT, April 18 (Reuters) - Key euro zone bank-to-bank lending rates hit fresh 21-month lows on Wednesday, weighed down by the large volume of cash the European Central Bank has pumped into financial markets since late last year.

For Bond Investors, Euro-Zone Crisis Is Back In Driver's Seat
Wall Street Journal
By Cynthia Lin Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Spain's debt crisis hasn't spread to other euro-zone regions, but it has already taken over trading of US Treasury bonds. The relationship between yields on US Treasurys and the cost of ...

The EuroCrisis Continues, Deleveraging Next
International Business Times
By Shayne Heffernan Spanish bonds rose for a second day as the extra yield that investors demand to hold 10-year debt instead of German bunds narrowed to 404.5 basis points from 413.7 basis points yesterday. Rajoy's government announced plans in ...

Euro-Zone Current Account Swings To Deficit
NASDAQ
FRANKFURT -- The euro zone's current account swung from a surplus to a deficit in February, European Central Bank data published Wednesday showed. The current account shifted to a deficit of EUR1.3 billion in February from a downwardly revised surplus ...

IMF fears $3.8 trillion forced asset sale by eurozone banks
Telegraph.co.uk
An escalation of the eurozone debt crisis could force European banks to sell assets worth up to $3.8 trillion (£2.4 trillion) by the end of 2013 and trigger a fresh credit crunch, the International Monetary Fund has warned.

Telegraph.co.uk

Europe Central Banks May Be Forced to Print More Money
CNBC.com
Inflation Danger However, inflation figures in the euro zone have given rise to new concerns, making the ECB's task even harder as the sole mandate written in its statute is maintaining price stability. Data out on Tuesday showed euro zoneinflation ...

CNBC.com

Eurozone is starting to look Japanese
Financial Times
It is confirmation of what some have suspected for a while: the eurozone is turning Japanese. The fear of emulating Japan's experience over the past quarter of a century has been a constant worry ever since the financial crisis broke in 2007.

Financial crisis that began with 2008 housing bust can't be stopped from ...
TCPalm
Ardavan Mobasheri, who spoke to about 100 people gathered for a real estate discussion at the International Economic Forum of the Americas, said the financial crisis that began in 2008 can "easily trace its roots to the excesses of the housing market" ...

Euro zone tensions boost German debt, sterling
Reuters Africa
By Richard Hubbard LONDON (Reuters) - Fears of a resurgence in the euro zone debt crisis boosted demand for safe-haven German bonds on Wednesday, while the Bank of England and a European Central Bank official signalled more monetary policy easing ...

Eurozone crisis live: UK unemployment in surprise fall to 2.65 million
The Guardian
The country's fundamental problem is its very weak growth over the last decade (after a brief surge in the early days of the eurozone). It faces major competitiveness problems, which can't be easily fixed within a single currency.

The Guardian

Why the euro zone may yet survive
Globe and Mail
Similarly, over the 10 days that I have spent in the US, I have found that informed Americans believe the euro zone will not survive. That is because they view it as a marriage of economic convenience, as de Tocqueville viewed the US as a marriage of ...

Globe and Mail

The Euro Crisis: Collateral and Centralization
Fair Observer
Despite the global implications of the issue, the euro crisis is still to some extent a regional dilemma, one that reveals several structural paradoxes within the euro-zone as a region sharing one monetary policy. The euro-zone consists of the 17 of...

Fair Observer

Euro zone credit could shrink by 1.7 pct -IMF official
Reuters
| WASHINGTON, April 18 (Reuters) - The International Monetary Fund estimates that deleveraging by European Union banks could cut credit supply in the euro area by about 1.7 percent over two years, with credit in Italy shrinking by 1 percentage point ...

From Financial Crisis to Stagnation: An Interview with Thomas ...
By Yves Smith
Thomas Palley is has served as the chief economist for the US – China Economic and Security Review Commission. He is currently Schwartz Economic Growth Fellow at the New America Foundation. His latest book From Financial Crisis to ...
naked capitalism

The ABCs of the Euro Crisis | The National Interest Blog
By The Editors
Taking a fresh look at an old issue, Megan McArdle explores the role demographics play in the on-going Euro crisis for The Atlantic. But explaining demographics doesn't itself illuminate a solution. McCardle does a decent job of showing the ...
The National Interest

Contagion Returns: France CDS Over 200 For First Time Since ...
By Tyler Durden
Just because these "contagion" things are never contained, as of minutes ago, French CDS has just passed over 200 bps for the first time since January, as the fact that Spain can issue debt maturing in a few weeks or months is completely ...

21 Books That Don't Know What Caused The Financial Crisis ...
By Gary Lucido
By Gary Lucido, today at 8:55 am. 21 Books That Don't Know What Caused The Financial Crisis. If someone tells you they know what caused the financial crisis - especially if they are from Hollywood and/or wear a baseball cap - don't believe ...
Getting Real Recent Posts

Gold lower on euro zone fears By Forexpros
By Forexpros
Forexpros - Gold futures traded lower during U.S. trade Wednesday, as increasing fears over theeuro zone's sovereign debt crisis pushed the greenback higher reducing the appeal of the precious metal. On the Comex division of the New ...
Forex Pros RSS News Feed | Forex News

The Eurozone: A Moral-Hazard Morass of Open Bailouts, Subsidies ...
The Eurozone: A Moral-Hazard Morass of Open Bailouts, Subsidies and Transfers :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website.
The Market Oracle

21 books about the financial crisis that don't know what caused the ...
By Jimmy Greenfield
If someone tells you they know what caused the financial crisis - especially if they are from Hollywood and/or wear a baseball cap - don't believe them. Andrew Lo, a finance professor at the MIT Sloan business school, wrote a review of 21 ...
ChicagoNow Recent Posts

EU debt crisis: World stocks ease with eurozone hurdles ahead ...
With Italy set to delay by a year its plan to balance the budget in 2013, Spain due to sell fresh two- and 10-year bonds on Thursday and worries over France's presidential election rising, investors were reluctant to buy riskier assets.
FP Top Stories List

Profs debate viability of eurozone | Stanford Daily
By Aaron Sekhri
Economics Professor Michael Bordo argued in support of establishing a pan-European central tax authority Tuesday afternoon, stating that “the unique experiment” of the eurozone should be paired with a fiscal union if it wants to survive the ...
Stanford Daily

Callanan: The Euro zone sugar rush has worn off; time for euro ...
By admin_dzafer
Speaking in a European Parliament debate today with EU commission president Jose Manuel Barroso, European Conservatives and Reformists group chairman Martin Callanan MEP said that it was time for euro zone leaders to stop pointing ...
ECR_en

Euro-Zone News and Analysis - Article Viewer
Nicolas Sarkozy argued this morning on RMC Radio that the euro's exchange rate to the US dollar should be subject to discussion between the ECB and eurozone governments in order to help European exports. He said, “If the euro rises too ...
Open Europe
George Soros: eurozone crisis has entered a 'more lethal phase ...
George Soros says Europe's financial crisis has taken 'a turn for the worse' and outlines a series of measures to solve it.
www.guardian.co.uk/business/.../george-soros-eurozone-crisis

Whitney Reverses Citigroup Call: Is Financial Crisis Over? - CNBC
Meredith Whitney, who made the prescient call in 2007 that Citigroup would cut its dividend, has now upgraded the very stock that brought her celebrity status ...
www.cnbc.com/.../Whitney_Reverses_Citigroup_Call_Is_Fina...

Euro zone debt fears pressure euro, shares - Yahoo! News
From Yahoo! News: LONDON (Reuters) - European shares eased and the single currency softened on Wednesday as the region's sovereign debt worries and ...
news.yahoo.com/euro-zone-debt-fears-pressure-euro-shares-0...

Prison Planet.com » Soros warns euro crisis could destroy the EU
Billionaire George Soros warned on Monday that the euro crisis is growing deeper, tearing at the fabric of European Union cohesion, because policymakers are ...
www.prisonplanet.com/soros-warns-euro-crisis-could-destroy-...

Weak Euro Doubles Eurozone ETF Losses
Eurozone ETF losses last week were doubled, as the euro was weakened by debt-crisis skeptics.
www.indexuniverse.com/.../11530-weak-euro-doubles-eurozo...

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