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

Saturday, May 19, 2012

G8 summit: Euro crisis and possible 'Grexit' overshadow agenda

G8 summit: Euro crisis and possible 'Grexit' overshadow agenda
Christian Science Monitor
But the eurozone debt crisis is once again the dominant concern. By Mark Trumbull, Staff writer / May 18, 2012 Oxfam activist wearing masks depicting G8 world leaders participate in a demonstration outside the White House in Washington, Thursday.

Christian Science Monitor

EU, ECB Preparing For Possibility Of Greece Leaving Eurozone
Huffington Post
BRUSSELS, May 18 (Reuters) - The European Commission and the European Central Bank are working on an emergency scenario in case Greece has to leave the euro zone, EU trade commissioner Karel De Gucht said in an interview published on Friday.

Secondary Sources: Greek Exit, Mortgage Mess, Inflation Targeting
Wall Street Journal (blog)
By Phil Izzo –Euro Zone Crisis: Multiple columnists weigh in on whether or not Greece leaves theeuro zone. First Martin Wolf: “Greek exit then would create a choice between big moves to a stronger union and a future of endless crises.

EURO GOVT-Greek contagion fear pins German yields to new low
Reuters
Investor appetite for the least risky assets showed no sign of flagging, despite the ever lower returns on offer, as they fretted about contagion from Greece to Spain, whose banks have been hammered by a property bust. With markets ignoring a poll ...

Greek politics, Spain banks test eurozone survival
The Associated Press
On Friday, Spain's central bank announced that the level of bad loans on the books of Spanish banks — burdened by a rising tide of bad loans, recession and the highest unemployment rate in the 17-nation eurozone — is at an 18-year high, ...

The Associated Press

GLOBAL MARKETS-Greek contagion threat pushes shares into red for year
Reuters
Euro zone crisis fears intensify flight to safety * German 2-yr bond yield hits record low, close to zero * World shares erase all year-to-date gains * Brent crude at lowest level in 2012 By Mike Peacock LONDON, May 18 (Reuters) - World shares slid and ...

EU Officials: Greek Exit Plans Discussed
Wall Street Journal
By VANESSA MOCK And MATINA STEVIS BRUSSELS—Europe has begun to prepare for Greece's exit from euro zone ahead elections next month that are fast becoming a referendum on the country's membership in the common currency. A senior European Commission ...

Europe thinks the unthinkable on Greece
Reuters
* EU commissioner: Greek contingency plans under consideration * Poll suggests support growing for pro-bailout Greek parties * Stock markets drop further on Greek contagion fears * Spanish bank bad loans rise By Sebastian Moffett and Mike Peacock ...

Economists React: What if Greece Exits the Euro Zone?
Wall Street Journal (blog)
If Greece just dumps the austerity program and walks, the risk of contagion rises, and “the euro could begin to rally, but so much damage will have been done by then that it would begin its rally from a much lower level and probably not be anywhere ...

Europe working on secret plan in case Greece exits
Chicago Tribune
European officials are working on contingency plans in case Greece bombs out of the euro zone, the EU's trade commissioner said on Friday, while Berlin said it was prepared for all eventualities. German Finance Minister Wolfgang Schaeuble, ...

G8 Will Be Told: Five Reasons the Euro Crisis Needs More Austerity
Forbes
Paul Krugman followed it up today with a similar line of reasoning – the Euro crisis can be solved if everybody starts to act sensibly. What neither The Times nor Krugman acknowledge though is that these economies lack the innovative power to transform ...

Greece and the Eurozone: What to Expect When You're Expecting the Unknowable
Huffington Post
More out there today on the possibility of Greece leaving the Eurozone. The New York Times is a bit less pessimistic than the Washington Post, but if you're looking for something new to get nervous about, here you go. Better yet, I'll summarize: we ...

Euro Contagion Fears Spark Sell-off Across Asia
NASDAQ
(RTTNews.com) - Asian shares tumbled on Friday, as fears of contagion from Greece's political turmoil and deepening worries about the health of Spanish banking system following reports of customers withdrawing more than 1 billion euro from Bankia -the ...

If Greece Crumbles, How Can Europe Save Itself? With Growth And Cash
Forbes
The chances for a Greek exit from the eurozone have dramatically increased in the past few weeks, Barclays economist write in a new note. Hellenic politicians failed to cobble together a functional government, forcing another round of elections on June ...

US STOCKS-Wall St falls before G8 leaders meet on euro zone
Reuters
Leaders will try to confront the continuing crisis in the euro zone, including the increasing likelihood of a Greek departure from the bloc. Growing concerns that global growth will suffer from the euro zone's problems and signs of a slowing US ...

EU, ECB working on Greece exit contingency-trade commissioner
Reuters
... hands * Greek exit would not mean end of the euro BRUSSELS, May 18 (Reuters) - The European Commission and the European Central Bank are working on scenarios in case Greece has to leave the euro zone, EU trade commissioner Karel De Gucht has said.

Greek politics, Spain banks test eurozone survival
Seattle Post Intelligencer
Spain's stock market flirted with seven-year lows Friday as investors continued to worry about the stability of the eurozone's financial system in light of the downgrading by credit ratings agency Moody's of the country's banking industry.

European leaders add to rising fears of breakup
msnbc.com
A new election is scheduled for June 17, as debate continues over the country's place in the euro zone. NBC's Stephanie Gosk reports. By John W. Schoen, Senior Producer European officials are playing a dangerous game of chicken with Greece.

msnbc.com

Asian Currencies Hit As Investors Flee Risk
Wall Street Journal
By ALEXANDER MARTIN TOKYO—The dollar remained steady, albeit at a lower level, against the yen during Asian trading Friday, but riskier Asian currencies fell sharply as the euro-zone crisis and disappointing US data caused the region's stock markets ...

WORLD FOREX: Asian Currencies Fall As Investors Flee Risk
Wall Street Journal
By Alexander Martin Of DOW JONES NEWSWIRES TOKYO (Dow Jones)--The dollar remained steady, albeit at a lower level, against the yen during Asian trading Friday, but riskier Asian currencies fell sharply as the euro-zone crisis and disappointing US data ...

European factors to watch - shares seen lower on Friday
Reuters
Moody's Investors Service cut the long-term debt and deposit ratings of 16 Spanish banks, including the euro zone's largest Banco Santander, saying the government's ability to support some lenders had weakened. The downgrades rekindled fears that the ...

EBRD-Euro crisis is big threat to emerging Europe
Reuters
By Sujata Rao | LONDON May 18 (Reuters) - Lacklustre growth in emerging European economies could turn into recession if the euro zone crisis escalates, the European Bank for Reconstruction and Development said on Friday. The EBRD nudged up its 2012 ...

David Cameron criticised for delivering 'irritating' lectures to eurozone leaders
The Guardian
David Cameron and George Osborne have decided to lecture the eurozone on what it needs to do to put its house in order. In a video conference on Thursday with Fran├žois Hollande and Angela Merkel, the prime minister decided to repeat his public warning ...

The Guardian

A Greek Exit? Euro Zone May Be Ready
New York Times
WASHINGTON — 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 an exit for the rest of the Europe and the global economy no longer seem quite ...

FOREX-Greek, Spanish woes push euro towards 2012 low; yen off highs
Reuters
Worries that a possible Greek exit from the euro zone would put pressure on other ailing European economies weighed on the currency, which last fetched $1.2674, down 0.2 percent on the day. It has shed 4.1 percent in May, zeroing in on its 2012 low of ...

OLRTXT DBT GVD PLCY GR BE EZC EZ NEWS GFIN EU POL
Reuters
EU, ECB working on Greece exit contingency: trade commissioner BRUSSELS (Reuters) - The European Commission and the European Central Bank are working on scenarios in case Greece has to leave the euro zone, EU trade commissioner Karel De Gucht has said.

Greek banks strain for cash
CNNMoney
Consumers and businesses are making massive withdrawals from Greece's banks -- leading to concern the beleaguered nation could be forced out of the eurozone by a banking crisis even before its government runs out of cash. Deposits are the lifeblood of ...

Disorderly Euro Zone Break-up Could Weaken Brent Oil To $60 -BofA-ML
Wall Street Journal
LONDON (Dow Jones)--A disorderly break-up of the euro zone could push Brent crude prices to as low as $60 a barrel amid the resulting sharp European recession and negative global economic consequences, Bank of America Merrill Lynch (BAC) said Friday.

Merkel ally: 'Eurozone could handle Greek exit' - The Local
The eurozone could absorb a Greek exit from the bloc, although it would prove extremely costly, a top member of German Chancellor Angela Merkel's junior coalition partners said on Friday.
The Local - Germany's news in English

Pulling The Eurozone'S Strings | iStockAnalyst.com
As we wrote Wednesday, eurozone economic growth was surprisingly resilient—overall flat in Q1—buoyed by a strong German showing. Although the figures are still subject to revision, the data showed core eurozone countries are much ...
Home: iStockAnalyst.com Feed

David Cameron on the euro crisis « The Market Monetarist
By Lars Christensen
First, the high deficit, low competitiveness countries in the periphery of the Eurozone do need to confront their problems head on. They need to continue taking difficult steps to cut their spending, increase their revenues and undergo structural ...
The Market Monetarist

Greek “Bank Jog” Threatens Eurozone | FDL News Desk
By David Dayen
You can feel the heat being turned up on Europe. Greece is in the middle of what the Guardian has called a bank jog.
Firedoglake

The Turd in the Eurozone Pool - Blogging Blue
By Phil Scarr
This demonstration that the euro is, in fact, reversible would lead, in turn, to runs on Spanish and Italian banks. Once again the European Central Bank would have to choose whether to provide open-ended financing; if it were to say no, the ...
Blogging Blue

Eurozone nearing crunch: Voice of Russia
By Iskanderov Pyotr
Global stocks and commodity prices are in their worst tailspin since last September on fears of a domino effect after Moody's downgraded its ratings of 16 Spanish banks, and Fitch downgraded from B- to CCC its long-tern credit rating of ...
Voice of Russia, News

Eurozone Descends into a Farce as "Grexit" Looms Large - Money ...
By Martin Hutchinson
Self –delusion reigns in the Eurozone. Recent elections in Greece make a “Grexit” nearly inevitable. Here's what investors need to know. Money Morning - Only The News You Can Profit From.
Money Morning

Greek Contagion Fears Rising as Facebook IPO Set to Trade - US ...
As Facebook's giant IPO comes to market, record low yields in the bond market are warning of more trouble ahead for financial markets.
Market Insider Blog

Money Flees From Eurozone, Gary Johnson Polling at 7% in NH ...
By J.D. Tuccille
Capital flight isn't just a Greek phenomenon — billions of euros are pouring from Belgium, France, Italy and Spain, with much landing in the UK, as depositors go hunting for safe havens for their money. Saying, "I do not believe a republic can ...
Hit & Run

How the Euro Crisis Could Sink the Obama Campaign
By editor
The busy shop floor at Miller Weldmaster Corp could make a great location for an Obama campaign ad. As workers assemble the family-owned company's hot-air.
Wall Street Pit

Euro zone crisis hits markets – Washington Post | The Wall Street ...
By Newswires
Moneycontrol.comEuro zone crisis hits marketsWashington PostATHENS — Europe's economic woes escalated Friday as fears mounted over troubled Spanish ...
The Wall Street Examiner

Eurozone crisis: Greek left leader renounces bailout deal | World ...
Frontrunner to form a new government shocks financial markets with remarks over EU and IMF loan agreement.
www.guardian.co.uk/world/.../erozone-crisis-greek-bailout-de...

Calafia Beach Pundit: Eurozone update
First, however, let's check in on the status of fears in the U.S. As the above chart shows, bond yields have fallen back to the levels they hit in late September, ...
scottgrannis.blogspot.com/2012/05/eurozone-update.html

Paul Krugman on Eurozone: "The Whole Thing Could Fall Apart in a ...
The European economic crisis is expected to top the agenda at the G8 meeting tomorrow at Camp David. In Greece, voters will soon head to the polls for ...
www.democracynow.org/.../paul_krugman_on_eurozone_the...

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