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

Wednesday, May 30, 2012

Euro Zone Bank Safety Net Leaves Holes Unplugged

Euro Zone Bank Safety Net Leaves Holes Unplugged
CNBC.com
As the euro zone ponders a possible Greek exit, policymakers have not yet built a shield robust enough to prevent a bank run in one country sending others in the bloc deeper into crisis. Last week, European leaders discussed pan-European means of ...

CNBC.com

Funds Cut Exposure to Euro Zone Banks
CNBC.com
Just another day in the eurozone. Spain's stock market tumbles to nine-year lows, its borrowing costs soar, and shares in one of the country's biggest banks fall nearly 30 per cent after Madrid announces a planned multibillion euro nationalisation.

Euro-Zone Bond Yields On Hold Ahead Of Supply, Polls And Data
Wall Street Journal
However, a variety of event risks on the horizon are expected to keep market participants on edge as the euro-zone crisis shows no signs of abating. "In the absence of much real news today so far, our risk takers today expect the tendency will be for ...

Hedge funds take bets against core euro zone bonds
Reuters
Fears rise that core euro zone could get dragged into crisis * Managers believe safe-haven bets have gone too far * Managers shorting France, Austria, Belgium, Germany * Wary of liquidity drying up in peripheral markets By Laurence Fletcher LONDON, ...

Dangers Of Contagion: EU Banks Sitting On A Lot Of European Bonds
Forbes
With countries and institutions already ramping up contingency planning for a possible Greek exit, it might be a good idea to look at banks' exposure to different peripherals and countries that could be in trouble to understand the risks of contagion.

Forbes

Eurozone crisis: Spanish fears send euro near to two-year low against dollar
The Guardian
The European commission is to deliver economic and fiscal policy prescriptions for theeurozone countries on Wednesday amid intense speculation that Spain will need to be given a longer and looser timeframe for budget deficit reduction.

The Guardian

Spanish Recession Seen Deepening Amid Crisis Contagion: Economy
BusinessWeek
By Angeline Benoit on May 29, 2012 Spain will sink deeper into a recession in the second quarter, the Bank of Spain said, as data showed retail sales fell by a record annual rate in April. Indicators suggest output will keep falling in the quarter ...

Greece and the Eurozone: Weakness Brings Power
Huffington Post
This is the paradox presently prevailing within the Eurozone. Until recently, the idea of issuing Eurobonds was dismissed as politically infeasible because it would in effect commit the EU's financially most prudent members to guaranteeing the loans of ...

Dim Prospects for Financial Crisis Prosecutions
New York Times
By PETER J. HENNING As has been noted many times, the lack of criminal prosecutions arising out of the financial crisis has been painfully obvious. And two items in the news last week underscores that the prospect for a signature case is growing even ...

Spain in focus as EU readies euro zone economic strategy
Reuters
Italy, the euro zone's third biggest economy and a country under close market scrutiny because of its large debt and slow growth, is likely to get praise for its fiscal consolidation efforts under technocrat premier Mario Monti, a draft document ...

Greek Contagion Could Drag Euro Below $1.19: Charts
CNBC.com
The US dollar Index Gold The speed and severity of the effect underlines the comparative weakness of many economies as they still struggle to climb out of the wreckage of the Global Financial Crisis. The GFC is not over, and it's too soon to say if the ...

Hungary Prepared For Negative Euro-Zone Scenarios -PM
Wall Street Journal
BUDAPEST (Dow Jones)--Hungary is ready to tackle all emerging unfavorable scenarios involving theeuro-zone crisis, Prime Minister Viktor Orban said Tuesday. "I sat down with the central bank governor and the economy minister last week to assess all ...

Eurozone crisis live: Fears grow over Spain as banking crisis deepens
The Guardian
That's a record fall (based on data going back to 2004), and indicates that thefinancial crisis is now hitting consumer spending hard, with Spain now officially in recession. 8.03am: Spain's problems are well-covered in today's UK newspapers.

The Guardian

Keeping Greece in the euro zone
Washington Post
THESE ARE TENSE times for the global economy. China seems headed for at least a mild downshifting in its previously hectic growth. Brazil's central bank says that country's economy contracted in the first quarter of 2012. Bond-rating agencies have just ...

The Eurozone Crisis for Dummies
Financial Post
When the market moves on every headline out of the eurozone, but it's hard to remember what's important. This guide will help. Worries about an economic catastrophe in Europe are heating up again, and dramatic forecasts about doom are popping up ...

Financial Post

World Markets Spin as Financial Contagion Reach to Spain
123Jump.com
3:40 PM New York – Stocks in New York traded higher and the growing financial contagion spread to Spain dragging the euro to a 2-year low as investors seek the safety in currencies and increase the US dollar exposure. Commodities traded volatile and ...

MAPI: Eurozone Heads for a Recession
PCBDesign007
The Eurozone is headed for a recession in 2012, much of it due to concern with the negative effects of the ongoing sovereign debt crisis weighing on both confidence and the outlook, according to the Manufacturers Alliance for Productivity and ...

Rubin: Leaders "behind the curve" on Euro crisis
CBS News
Rubin warned if Greece were to pull out, "the probability was very high that it would have very serious contagion effects across the Eurozone and that in turn could have very serious adverse impact to the United States and the entire world.

Wall Street to rise on China stimulus hopes, calm euro zone
CNBC.com
NEW YORK (Reuters) - US stocks were set for a higher open on Tuesday, indicating equities may continue to rally after their first weekly gain since April, on hopes China may unleash more spending measures and Greek election polls pointing to support ...

EU Barroso Calls For Deeper Euro-Zone Integration
Wall Street Journal
BRUSSELS (Dow Jones)--European Commission President Jose Manuel Barroso reiterated Tuesday that euro-zone members need to move ahead with deeper integration in order to become a full economic and monetary union. "We will support an ambitious and ...

EU's Barroso to Eurozone: Come Up With a Timetable
Fox Business
Euro zone countries should come up with a timetable to reach full economic union, to reassure investors about the future of the single currency bloc, European Commission President Jose Manuel Barroso said on Tuesday. Barroso said in a speech that ...

Copper up on China stimulus plan, euro zone woes limit gains
CNBC.com
SHANGHAI (Reuters) - London copper prices edged up on Tuesday after Chinese equities gained on signals that China will soon launch an economic stimulus scheme, but fears that Spain's debt problems will worsen the euro zone debt crisis limited gains.

Amid Euro Crisis, This Company Is Literally Printing Money
Minyanville.com
By Vincent Trivett May 29, 2012 12:50 pm If Greece finally exits the eurozone, this British currency printer might have a new client. MINYANVILLE ORIGINAL Global instability is usually anathema to stolid, centuries-old companies.

The eurozone could survive apocalypse in Athens but not a meltdown in Madrid
Daily Mail
Depositors are also covered up to £85000 by the UK protection scheme. Nonetheless, the Spanish banking crisis is bad news for everyone. The Eurozone might be able to survive Greece, but it could not withstand a meltdown in Madrid.

Daily Mail

US Summers: Not Totally Sure Can Rebuild Faith In Greece As Euro-Zone Member
Wall Street Journal
Speaking to reporters in Singapore, Summers said he believed a Greek exit from the currency bloc would be manageable if it wasn't accompanied by substantial contagion, but there was such a risk. "Despite what politicians hope, much of economics is not ...

Jay Bryan: A happy ending for eurozone?
Calgary Herald
MONTREAL - There's actually a simple solution to the unending agonies of the eurozone debt crisis. But if it's simple, it's not easy: the problem is persuading Germany, the zone's dominant economic power, to accept it. And if Germans have learned one ...

Eurozone Crisis Poll: Pew Research Center Finds Europeans Ambivalent ...
Huffington Post Canada
UPDATE: The Pew Research Center's survey on attitudes in the Eurozone found that residents of Greece -- now into its third year of a massive debt crisis -- consider themselves the hardest-working people in Europe. That's in stark contrast to the rest ...

US STOCKS-Wall St up on China stimulus hopes as euro zone steadies
Reuters
* Greek polls point to pro-bailout parties * Spanish bank worry continues * Vertex Pharma plunges after data correction * Indexes up: Dow 1.1 pct, S&P 1.2 pct, Nasdaq 1.4 pct By Chuck Mikolajczak NEW YORK, May 29 (Reuters) - US stocks rallied on ...

Greek Contagion Spreads to Ireland | Via Meadia
By Walter Russell Mead
For the past month, contagion from Greece's slow motion meltdown has been spreading west. Spain is now on the verge of collapse, and Italy and Portugal may not be far behind. Now the crisis may be spreading north as well. Despite recent ...
Via Meadia

Eurozone Banks Reasonably Sturdy | The Big Picture
By Barry Ritholtz
Eurozone Banks Reasonably Sturdy - By Barry Ritholtz - May 29th, 2012 . . .
The Big Picture

Hedge funds take bets against core euro zone bonds | Reuters | The ...
By Newswires
Hedge funds are piling into bets against the bonds of core euro zone countries like Germany and France, signaling a growing fear that nations once consider...
The Wall Street Examiner

Greece To Leave EuroZone June 18 — GraniteGrok
By Steve MacDonald
That's the headline. And some folks sound happy to see the freeloaders gone. “The basic question is that a German has to increase working from 65 to 67 and that is to pay for Greeks retiring at 50. The 17th.
GraniteGrok

Cameron demands proof UK is ready for eurozone collapse as he
By Lynsey
The Governor and FSA chief briefed Mr Cameron on the resilience of British banks and measures being taken to insulate the UK economy from the risk of contagion spreading from bankrupt Greece to other economies. Read More. Posted by ...
The Coming Crisis

What's Next for Europe? Look at the Eurozone Countries' Numbers
The borrowing costs for the weaker members of the eurozone tell the current story, and suggest what may come next at this critical time.
AdvisorOne

What happens to LatAm if Greece leaves the euro zone? | Brazilian ...
By Brazilian Bubble
Itau responds. According to them, Mexico and Argentina will be toast. Here is an excerpt of their analysis What happens to LatAm if Greece leaves the euro.
Brazilian Bubble

Greek eurozone exit will mean looser association between UK and ...
By Sidney Donald
If Angela Merkel or Wolfgang Schauble still possess a tin hat inherited from the war days (in their case the coal-scuttle model), I strongly advise them to don.
Speaker's Chair

Tsipras on Euro Crisis: ' Both sides have nuclear option « Greek Left ...
By SOZ
Do you think the eurozone will continue to insist on Greek austerity? We don't believe that they will instate the austerity measures because now they can understand that the problem is not a Greek problem. It's a European problem.
Greek Left Review

The Never Ending European Financial Crisis | The Economic Populist
By Robert Oak
Additionally it was proclaimed bank runs have started in Europe. A bank run is now happening within the eurozone. So far it has been relatively slow and prolonged, but it is a run nonetheless. And last week, it showed signs of accelerating ...
The Economic Populist

David Cameron urges eurozone to follow UK model for recovery ...
Cameron says eurozone is at a crossroads and urges it to adopt its own pro- business, pro ...
www.guardian.co.uk/business/2012/.../david-cameron-eurozo...

Eurozone looks at Greek exit as leaders meet - Yahoo! News
From Yahoo! News: BRUSSELS (Reuters) - European leaders, at odds over how to resolve the deepening crisis in the euro zone on Wednesday, have been ...
news.yahoo.com/euro-zone-officials-agree-prepare-greek-exit...

Germany's Eurozone Dilemma (Portfolio) - YouTube
Stratfor analyst Adriano Bosoni examines Germany's domestic political dilemma as it tries to ...
www.youtube.com/watch?v=_o9KV477qO8

A Greek Exit? Euro Zone May Be Ready — Greece Business News ...
It is increasingly conceivable that Greece may leave the euro zone, not just because of its own political dysfunction but also because the consequences of such ...
www.cnbc.com/id/.../A_Greek_Exit_Euro_Zone_May_Be_Re...

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