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

Tuesday, May 22, 2012

Euro zone needs growth and austerity: ECB's Asmussen

Euro zone needs growth and austerity: ECB's Asmussen
Reuters
By Annika Breidthardt | BERLIN (Reuters) - A European growth pact and deeper political integration in the euro zone could bolster the currency union, but there must be no softening of the bloc's fiscal pact on budget discipline, ECB policymaker Joerg ...

New Pro-Eurozone Alliance Seeks Traction in Greece
New York Times
ATHENS — Less than a month before new general elections that could determine Greece's future in the eurozone, the conservative New Democracy Party secured cooperation with a small liberal grouping on Monday in an effort to beat to first place an ...

Greek Party Leaders Call For Euro-zone Bond, Growth Measures
Wall Street Journal
ATHENS (Dow Jones)--Greek political party leaders called Monday for adoption of a commoneuro-zone bond to help the country resolve its financial crisis and to boost Europe's slowing economy. Caretaker Prime Minister Panagiotis Pikrammenos met leaders ...

Leftist Greek Party Tries to Rally Support in Europe
Wall Street Journal
Greek anti-austerity leftist leader Alexis Tsipras, right, said today that it was not for German Chancellor Angela Merkel to call for a referendum on his debt-hit nation's membership of the eurozone. "I don't know if we have scared Europe, ...

Wall Street Journal

Greek euro zone exit unlikely, say money market traders
Reuters
BANGALORE (Reuters) - A slim majority of euro zone money market traders surveyed regularly by Reuters reckon Greece will still be in the euro zone at the end of 2013, a poll showed on Monday. Fourteen of 22 euro money market traders said Greece would ...

Germany insists no eurobonds to solve debt crisis
The Associated Press
By GEIR MOULSON, AP – 2 hours ago BERLIN (AP) — Germany has again made clear its opposition to French proposals for jointly-issued bonds from the 17-nation eurozone as a way to create economic growth and ease the region's financial crisis.

France presses for euro area bonds as crisis salve
Reuters
* France's Hollande set to press euro bonds at May 23 summit * Debate resurfaces as euro zone debt crisis worsens * German official says euro bonds "wrong idea at wrong time" * IG Metall pay deal suggests some bolstering of German demand By Luke Baker ...

Analysis: Investors lose faith in stock valuation compass
Reuters
That is because the price/earnings comparison is 8.5 for the fifty biggest euro zone blue chip stocks, lower than the average of 9.8 over the past five years. However, few are relying on such indicators these days. Speculation about Greece's future, ...

Greek Woes Could Hurt 5 Big US Bank Stocks
Barron's
We now believe a Greek exit of the Euro is probable (versus merely plausible in 2010 and 2011) and we fear material damage in the Eurozone will result, both directly and via contagion to other PIIGS [comprised of Portugal, Italy, Ireland, ...

Bailout terms will push Greece to exit, party says
MarketWatch
Mr. Melenchon's relatively strong showing tapped into disaffection in France with the pace ofeuro-zone integration. "The Greek debt crisis is not just about Greece, it's about all European people and we must find a common European solution to a common ...

Markets inch up after G-8 vague on Europe fix
The Associated Press
Without the rescue package, Greece will likely default and leave the eurozone. That would mean a financial disaster for Greece, but it will also send shockwaves throughout Europe. At stake is a bailout package that Greece urgently needs to stay solvent ...

Eurobond clash set for EU summit
MarketWatch
By William L. Watts, MarketWatch FRANKFURT (MarketWatch) — François Hollande and German Chancellor Angela Merkel appeared set for a clash later this week as the new French president signaled he would make a pitch for jointly-issued euro-zone ...

Stock Markets Calm on Lukewarm G-8 Support for Euro
New York Times
PARIS — European markets were mixed on Monday, after the leaders of the Group of 8 nations at a weekend meeting offered moral support, but no road map, for addressing the euro crisis. The leaders, meeting at Camp David in Maryland, urged Greece to ...

Eurozone should form political union, says Germany's ECB firefighter
The Guardian
The 17 countries of the beleaguered single currency should form a federalised political and financial union within the EU, according to the man Angela Merkel has charged with firefighting the euro crisis. Jörg Asmussen, the former deputy German finance ...

The Guardian

Greece's new prime minister meets party leaders
San Jose Mercury News
Greece is set to hold elections on June 17 to end a political deadlock after a previous vote on May 6 produced a hung Parliament, with the country's future in the 17-nation eurozone potentially at stake. ATHENS, Greece—Greece's newly installed ...

Is a Greek Exit from the Euro Inevitable?
TIME
By Michael Schuman | @MichaelSchuman | May 21, 2012 | + For two-and-a-half years, the world has been watching and waiting to see if debt-laden Greece could remain in the euro zone. Many have been doubtful since the beginning of the debt crisis.

TIME

UK's Cameron urges euro zone action | The Republic
The Republic
CHICAGO (Reuters) - British Prime Minister David Cameron said on Monday not enough had been done to end the euro zone debt crisis but reassured savers worried by a downgrading of Spanish banks that British banks were well regulated and well capitalized ...

The Republic

RPT-Euro area bonds to be discussed at informal EU summit-officials
Reuters
By Luke Baker BRUSSELS May 21 (Reuters) - French President Francois Hollande and like-minded euro zone leaders are expected to promote the idea of mutualised European debt at an informal summit in Brussels this week, increasing pressure on German ...

EURO GOVT-Bunds dip on profit taking but Greece still in focus
Reuters
Focus turns to an informal summit of European Union leaders on Wednesday, at which French President Francois Hollande and like-minded euro zone leaders are expected to promote the idea of mutualising debt, including common bonds.

The Greeks Are Sobering Up
Wall Street Journal (blog)
But the Greeks, cut off from the markets since 2010, also know that the belt-tightening is a must if they are to stay in the euro zone, avoid a messy default and a return to the inflationary drachma and a 1960s-style standard of living.

German, French Finance Chiefs Pledge Support for Greece Staying in Eurozone
Voice of America (blog)
Germany, with the eurozone's most robust economy and its lowest borrowing costs, has long resisted the sale of eurobonds. It says debtor governments like Greece, Italy and Spain and others must first control their spending. The German government says ...

An exit by Greece would test the eurozone
Boston Globe
By Steven Erlanger If Greece exits the eurozone, there is some question as to whether it could produce its own currency quickly. PARIS — The leaders of the Group of 8, emphasizing growth as well as fiscal discipline at their meeting on Saturday, ...

France, Germany Fail to Resolve Differences Over Euro Bonds
Wall Street Journal
By WILLIAM BOSTON BERLIN—France and Germany appeared no closer to a compromise on how to revive economic growth in the euro zone after a meeting in Berlin on Monday, paving the way for a potential showdown over the thorny issue at an informal summit ...

UN: Facing Eurozone Risks, Asia-Pacific Must Hasten Integration
Voice of America
BANGKOK -- A panel of the UN Economic Commission for Asia and Pacific says exports, which are historically the region's traditional growth driver, are slowing due to the Eurozone debt crisis and uncertainties in the United States.

Only 'Modest Contagion' for US Banks
TheStreet.com
By Philip van Doorn 05/21/12 - 08:43 AM EDT NEW YORK (TheStreet) -- A "modest contagion" for financial stocks "should allow domestically focused financial stocks to stabilize in the coming weeks," according to KBW analyst Fred Cannon.

Could the Eurozone Crisis Cause Another Lehman Moment ...
By Matt Stoller
Matt Stoller is a fellow at the Roosevelt Institute. You can follow him on twitter athttp://www.twitter.com/matthewstoller. The Lehman Brothers bankruptcy is perceived of as the 9/11 of the financial crisis, the moment where liquidity problems that ...
naked capitalism

Should Greece Exit the Euro Zone? Becker - The Becker-Posner Blog
By Gary Becker
Countries run balance of payments deficits when their tradable goods are expensive on world markets because their producers are not sufficiently cost effective. These deficits cannot continue unless other countries are willing to help finance ...
The Becker-Posner Blog

Capital flight in the Eurozone — Marginal Revolution
By Tyler Cowen
In a fascinating research note*, Matt King of Citigroup calculates the outflows of capital from various euro zone nations, in particular Italy and Spain. He concludes that Italy saw 160 billion euros exit in 2011, while Spain lost 100 billion.
Marginal Revolution

BRICS can not help a Eurozone intent on committing hara-kiri ...
By SGT
from Re-Define: Note: This is my Op-Ed response to Jeff Sach's suggestion that emerging markets should help the eurozone. It appeared in the FT's A-List. The eurozone's problems are entirely self-inflicted, and the solutions too must come ...
SGTreport - The Corporate Propaganda...

Hollande, Merkel Face Fight Over Eurozone Bonds | Atlantic Sentinel
By Nick Ottens
The debate between austerity and growth is expected to narrow to the question of whether countries in the eurozone should jointly issue sovereign bonds when leaders meet in Brussels on Wednesday. Hollande, a socialist who became ...
Atlantic Sentinel

Dollar turns broadly higher amid euro zone worries By Forexpros
By Forexpros
Forexpros - The U.S. dollar turned broadly higher against its major counterparts on Monday, as comments by G8 nation leaders over the weekend failed to reassure investors over the handling of the debt crisis in the euro zone.
Forex Pros RSS News Feed | Forex News

Eurozone woes to dominate Franco-German talks – Full story | The ...
By Lee Adler
(via AFP) The finance ministers of France and Germany were to hold crisis talks in Berlin Monday, aiming to resolve differences ahead of a key Europ...
The Wall Street Examiner

Obama, Cameron call for urgent action to save eurozone | European ...
obama, cameron call for urgent action to save eurozone leaders say failure to deal with crisis will infect economies across the globe.
European Voice - RSS

Eurozone Descends into a Farce as “Grexit” Looms Large | Forex ...
By MONEY MORNING
Those elections, and the failure of Greece to form a government, have actually moved theEurozone crisis one step further – from potential tragedy into a complete farce. As investors, we can only watch horrified, knowing that a really bad ...
Forex Trading Blog

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