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

Saturday, July 7, 2012

Debt crisis: Spain back in the dangerzone

Debt crisis: Spain back in the dangerzone as politicians wrangle - Telegraph: "Spanish and Italian borrowing costs soared back into the danger zone as traders bet that the policy action by central banks was inadequate defence against the continued political and financial chaos in the eurozone."

Key Euro Zone Lending Rate Hits Record Low
Wall Street Journal
London--The key euro-zone interbank lending rate--the three-month Euribor--sank to a record low level Friday after the European Central Bank unexpectedly slashed its deposit rate by 25 basis points to 0% at its monthly meeting on Thursday. Three-month ...

Euro Zone Nations Wrestle With a 'Trilemma'
New York Times
The trilemma theory says that in addressing a crisis, member states can have only two of three things: deep economic integration, democratic politics and autonomy as nation-states.

ECB Urges Euro Zone to Move Quickly With Banking Union
Wall Street Journal
AIX-EN-PROVENCE, France--European Central Bank policy makers Christian Noyer and Benoit Coeure Friday pressed euro-zone countries to move ahead quickly with their plans to set up a banking union, adding that central banks can't intervene in ...

Euro-Zone Banking Supervisor Not Operational Before 2H 2013-EU Official
Wall Street Journal
BRUSSELS--The euro-zone banking supervisor, touted as a major breakthrough last week at a European Union summit, won't be up and running before the second half of 2013 at best, a senior EU official with direct knowledge of the situation said Friday.

Running Out of Options, Euro Zone Faces a Stark Choice
CNBC.com
The European Central Bank is almost out of conventional policy options and will have to turn to measures it finds deeply unpalatable if the euro zone crisis intensifies, or watch the bloc slide towards the abyss.

CNBC.com

Finland Would Rather Exit Euro Than Pay for Others
Wall Street Journal
Finland would consider leaving the euro zone rather than paying the debts of other countries in the currency bloc, Finnish Finance Minister Jutta Urpilainen says in a newspaper interview.

Could Finland be the first country to leave the euro?
Washington Post (blog)
Most discussions of friction within the euro zone revolve around Germany. Either mighty Germany lends a hand to stragglers like Spain and Italy, the logic goes, or the euro disintegrates. Somewhat understandably, most Germans aren't thrilled with this ...

German industry output climbs, points to Q2 expansion
Reuters
Economists see slightly positive Q2 GDP* Economy ministry: output remains solid despite euro crisis (Adds detail, quotes, background)By Michelle MartinBERLIN, July 6 (Reuters) - German industrial.

Italian Bonds Fall From Grace on Contagion Concern
Businessweek
Italian bonds turned a first-quarter rally into the third-worst performance in Europe as concern mounted that government leaders won't prevent the debt crisis from spreading to the region's biggest fixed-income market.

Euro zone price pressures at 26-month low in May: ECRI
Reuters
BANGALORE (Reuters) - Inflationary pressures in the euro zone fell to a 26-month low in May, easing in each of its four biggest economies, according to an indicator designed to predict cyclical inflation.

German industry output climbs, points to second-quarter expansion
Reuters
BERLIN (Reuters) - German industrial production rose far more than expected in May due to stronger consumer goods output and construction activity, highlighting the resilience of Europe's largest economy even as much of the euro zone succumbs to a ...

Euro Zone Crisis: Banks Lower Rates But Confidence Stays Low
Care2.com (blog)
On Thursday, the European Central Bank (ECB) took two significant measures to shore up the flagging euro zone economy.

Euro zone won't decide on Spain banks Monday: Berlin
Reuters
BERLIN (Reuters) - Euro zone finance ministers will not make a decision at their meeting next Monday on aid for the Spanish banking sector, as there is no report yet available from the troika inspectors,

Direct ESM bank aid needs sovereign guarantee-official
Reuters
Official says if ESM helps bank, sovereign must giveguarantees* Direct ESM lending avoids pushing up national debts* However, guarantees may be dropped in the very distantfutureBRUSSELS, July 6.

Finance chiefs turn to EU's unfinished business
Reuters
BRUSSELS (Reuters) - Euro zone officials are cautioning against expecting any quick action from the currency bloc's finance ministers when they meet on Monday to sort out the tangle of loose ends and disagreements.

Eurozone crisis live: Markets falling as Spanish bond yields continue to rise
The Guardian
Spanish 10 year bonds break through the 7% yield barrier • US job growth 80000 against 90000 consensus • Lunchtime round-up • Today's agenda.

The Guardian

An Excellent Source on the Euro Crisis
Forbes
If you're interested in reading short summary papers on aspects of the Euro crisis by some of Europe's leading economists then I have a recommendation for you. The European Parliament's Economic and Monetary Affairs committee holds regular meetings ...

Cyprus blames Greek deal for turmoil, seeks Russia aid
Reuters
NICOSIA (Reuters) - Cyprus blamed the decision to restructure Greece's debt for destroying its own economy on Friday, and defended its right to seek financial assistance from Russia, calling it a strategic.

Sovereigns Will Have to Guarantee ESM-Rescued Banks
Wall Street Journal
BRUSSELS--Euro-zone countries would still have to guarantee the loans the permanent bailout fund, the European Stability Mechanism, gives their banks even if it directly recapitalizes them, a senior European Union official with direct knowledge of the ...

Eurozone crisis to keep markets under pressure
Economic Times
Growing disillusion over the latest steps to resolve Europe's debt crisis and policy easing by major central banks will dominate market sentiment.

Will Europe Really Break the Spanish Sovereign-Banking Loop?
Wall Street Journal (blog)
A senior European Union official says countries will need to indemnify the euro zone's bailout fund against losses it might suffer after it recapitalizes their banks. That would leave the dreaded sovereign-bank loop intact.

Euro crisis fall-out is global, IMF chief warns as situation deteriorates even ...
Daily Mail
The International Monetary Fund, led by Christine Lagarde, said the situation has deteriorated in Europe and America as well as in emerging markets such as China, India and Brazil.

Daily Mail

Low on policy options, ECB may face stark choice
Reuters
FRANKFURT (Reuters) - The European Central Bank is almost out of conventional policy options and will have to turn to measures it finds deeply unpalatable if the euro zone crisis intensifies, or watch.

Spanish, Italian borrowing rates rising again
Huffington Post
The bond rates for Spain and Italy began inching up on Thursday, when the European Central Bank gave no indication that it would take more emergency action to ease eurozone government borrowing rates. The ECB has in the past bought the governments ...

As US economy steadies, bank closings become rarer
Indianapolis Star (blog)
WASHINGTON -- Fewer U.S. banks are failing than at any time since the financial crisis erupted in 2008. The healthier banking industry is helping sustain an economy slowed by lackluster hiring, weak manufacturing and Europe's debt crisis.

Eurozone crisis: Low on policy options, ECB may face stark choice
Economic Times
ECB is almost out of conventional policy options and will have to turn to measures it finds deeply unpalatable if the eurozone crisis intensifies.

Euro zone killed our economy - Cyprus
Independent Online
Cyprus delivered a tough critique of the euro zone's decision to restructure Greece's private-sector debt on Friday, saying it had effectively thrown the Cypriot economy into turmoil and forced it into bailout of its own. Euro zone leaders agreed in ...

Independent Online

German "wise men" reiterate call for redemption fund
Reuters
BERLIN (Reuters) - Germany's panel of government economic advisors said on Friday the decisions made at last week's EU summit could stabilize the euro zone in the short term but do not solve the crisis.

Finland Threatens to Leave Euro-Zone | Forex Crunch
By Yohay Elam
Finland stood out for asking for collateral from Greece and later Spain. Now, Finland's finance minister Jutta Urpilainen heightened the tone regarding the.
Forex Crunch

Eurozone Bailout Agreement Not All It Seems - 24/7 Wall St.
By Paul Ausick
Markets widely interpreted Germany's recent agreement permitting the European Financial Stability Fund (EFSF) and the European Stability Mechanism (ESM) to purchase Eurozone sovereign debt as a major step on the road to Eurozone ...
24/7 Wall St.

Early Warning: PIIGS and European Unemployment
By Stuart Staniford
The above shows the latest available data for the unemployment rate in the PIIGS countries; these run through May except for Greece where they only go through March. In general, it appears that Spain and Greece continue to worsen at a ...
Early Warning

Ask Veronique Anything: How Will The Euro Crisis Affect The US ...
By Andrew Sullivan
Veronique de Rugy seems so wrapped up in her political project of reducing the size of government that she seems to have completely missed the point of the Keynesian argument that Paul Krugman is making. She seems to be talking about ...
The Daily Dish | By Andrew Sullivan

An Excellent Source on the Euro Crisis – Forbes | The Wall Street ...
By Newswires
The Guardian An Excellent Source on the Euro Crisis Forbes If you're interested in reading short summary papers on aspects of the Euro crisis by some of ...
The Wall Street Examiner

mainly macro: The balance of power in the Eurozone, and the ...
By Mainly Macro
This was not based on any forecast of the Greek elections, but rather a judgement about the balance of power within the Eurozone. (It is also based, as Paul Krugman points out, on the optimistic belief that the actors concerned recognise this ...
mainly macro

Crude Oil Trader: A Shocking Bankers Coup in the Euro Crisis
By Ray C. Parrish
On Friday, June 29th, German Chancellor Angela Merkel acquiesced to changes to a permanentEurozone bailout fund—“before the ink was dry,” as critics complained. Besides easing the conditions under which bailouts would be given, the ...
Crude Oil Trader

Euro Zone Nations Wrestle With a 'Trilemma' World News Tomorrow ...
By The Editor World News Tomorrow
WORLD NEWS – LONDON — So, let's say you have mastered the euro zone concept of “financial contagion.” Maybe you even know a thing or two about the euro “doom loop,” in which sickly banks and indebted governments threaten to drag ...
World News Tomorrow | World News

Finland could leave the eurozone rather than pay other nations ...
By MRH
“Finland is committed to being a member of the eurozone, and we think that the euro is useful for Finland,” Ms Urpilainen told financial daily Kauppalehti, adding though that “Finland will not hang itself to the euro at any cost and we are ...
SGTreport - The Corporate Propaganda...

Greece looks to easier rescue terms, eurozone gloom returns ...
By hussain
The new Greek government presents a strategy to salvage its debt rescue programme on Friday, to win favour with EU-IMF auditors and gain room to renegotiate terms with its creditors.
Pakistan Today | Latest news...

Trust Your Instincts: Finland would prefer to leave Eurozone than ...
By Richard Field
The Telegraph reports that according to the Finnish Finance Minister, Finland would prefer to leave the Eurozone than pay other countries' debts. This seems perfectly reasonable when one considers that there is an alternative of using the ...
Trust Your Instincts

Weekly Eurozone Watch | Global Macro Monitor
By macromon
Finland is committed to being a member of the eurozone, and we think that the euro is useful for Finland. Finland will not hang itself to the euro at any cost and we are prepared for all scenarios. Collective responsibility for other countries' debt, ...
Global Macro Monitor

Forget the PIIGS, the EU as a Whole is Insolvent | ZeroHedge
Europe is heading into a full-scale disaster. You see, the debt problems in Europe are not simply related to Greece. They are SYSTEMIC. The below chart shows ...
www.zerohedge.com/.../2012.../forget-piigs-eu-whole-insolve...

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