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

Monday, July 2, 2012

Euro debt crisis: is complete pessimism justified?

Euro debt crisis: is complete pessimism justified? - Telegraph: "Rarely have economists and policy-makers emitted such unmitigated gloom. . . . There is much in the present mixture of defeatism, complacency and misguided financial orthodoxy that conjures up the 1930s. The worst thing is the confusion of human and institutional failings with God-given inevitability. Across the democratic world, voters may yet coalesce around some sort of solution. I hope that it isn’t the sort of solution that so many of them found attractive in the 1930s."

Italy has won this euro battle, but not the war - Telegraph: "Italy has won this euro battle, but not the war Long-suffering investors, desperate for some good news, have seized on the headlines from the latest in a long series of “last-ditch” European summits."

Ireland "Aiming High" In Euro Zone Talks On Bank Debt - Irish Dep PM
Wall Street Journal
DUBLIN--Ireland will be "aiming high" in upcoming negotiations to lighten the country's huge bank debt burden following a euro-zone agreement to allow rescue funds to finance the bloc's broken banks, Ireland's deputy leader Eamon Gilmore said Sunday.

Money Funds Buck Euro-Zone Retreat
Wall Street Journal
At a time when many money-market mutual funds are piling out of Europe, some are looking for more of it in their quest for higher returns.

ECB official: Greece must deliver `100 pct'
Huffington Post
He noted that any extension would lead to a need for more external financial help – "that means that the other 16 eurozone states and the IMF would then have to provide more financing." The ECB is part of the so-called "troika" of debt inspectors ...

The Case for and Against a Euro-Zone Dissolution
Wall Street Journal
Jack Ablin, chief investment officer at Harris Private Bank, says the best-case scenario is theeuro zone stays together for another two years, while Jim McDonald, chief investment strategist for Northern Trust, doesn't expect a broad revamp of the ...

To Save the Euro, the Eurozone Governments Must Stand By Greece
Wall Street Pit
George Soros probably understands the nature of the immediate problem facing the Eurozone(namely, the accelerating bank run which, amongst other things,

William Hague: 'Powerful case' for EU referendum
BBC News
Foreign Secretary William Hague says there may be a "very powerful" case for an EU referendum if member states agree a closer union following the eurozonecrisis.

BBC News

Eurozone must break its 'negative string of events'
The Daily Yomiuri
The European leaders also agreed to create a joint, single supervisory body for eurozone banks by the end of this year, while ensuring all eurozone member states cooperate in propping up government bonds of such countries as Spain and Italy, where ...

Cameron EU referendum move 'jam tomorrow'
The Independent
The Prime Minister was accused of offering “jam tomorrow” with his offer to go to the people once Britain's future relationship with Brussels, in the aftermath of the eurozone crisis and further EU integration, becomes clear. He insisted that an ...

Eurozone leaders rise to meet challenge, but details missing
China Post
Economists and non-euro EU leaders cheered Friday's eurozone summit deal as a surprise “breakthrough” in efforts to preserve a stable currency, yet crucial details still need to be filled in.

UK's Cameron attempts to woo eurosceptics on referendum
Chicago Tribune
Fears over closer fiscal union in the single currency bloc in response to the euro zone debt crisis has heightened concerns among backbenchers, especially among the eurosceptics on the right of the Conservative Party and the electorate. Polls suggest ...

EU Rescues Markets Just In Time - Again
Seeking Alpha
At their 19th summit meeting since the eurozone crisis began two years ago European officials once again demonstrated their willingness to take markets to the very brink before taking action. And once again it worked, with markets rallying in hopes ...

Merkel seen as big loser in Euro zone showdown
Business Standard
Angela Merkel was portrayed across Europe as the big loser of a Euro zone showdown in Brussels after the German chancellor was forced to accept the crisis-fighting measures championed by countries struggling with their debts.

All eyes on ECB after eurozone summit deal
AFP
By Simon Morgan (AFP) – 40 minutes ago. FRANKFURT — Europe, with last week's EU summit, appears to have warded off disaster, at least for now, but the markets are now looking to the European Central Bank to ensure the deal is a success, analysts said ...

AFP

PM opens door to EU referendum – but does he mean business?
The Week UK
Cameron's article makes it clear that the Eurozone crisis needs to be resolved. He also acknowledges that "the coalition parties will have different views on this" - in other words, it won't wash with the pro-Europe Lib Dems. This is therefore an issue...

The Week UK

EU Summit: How all-night Brussels showdown pulled Euro back
NDTV
They were bleary-eyed in their crumpled suits early on Friday morning, but euro zone negotiators were smiling after a hard-fought night of talks that struck a surprisingly far-reaching deal to prop up the euro. An agreement to let the euro zone's ...

EU deal done, but details sketchy
Deccan Herald
Under pressure to prevent a catastrophic breakup of their single currency, euro zone leaders agreed to let their rescue fund inject aid directly into stricken banks from next year and intervene on bond markets to support troubled member states. They ...

PM accused of weak stance on Europe referendum
The Guardian
Cameron's article also highlighted tensions within the coalition over Europe, with Vince Cable, the Liberal Democrat business secretary, saying calls for a referendum were "horribly irrelevant" with the eurozone still in crisis. William Hague, the ...

The Guardian

Eurozone deal lifts hopes of end to debt crisis
The Australian
THE latest eurozone deal has bolstered world markets hoping for a long-term solution to the debt crisis, but analysts are split on whether it will be another false dawn for the struggling region.

'It's time to open the door and consider a referendum': Cameron to give ...
Daily Mail
The picture appeared confused on Friday when Mr Cameron emerged from a marathon Brussels summit on the euro crisis to say: 'I completely understand why some people want an in/out referendum – some people just want to say, “Stop the bus, I want to ...

Daily Mail

Germany's Merkel called big loser in eurozone bailout
Pittsburgh Tribune-Review
Reuters — Germany's Chancellor Angela Merkel was portrayed across Europe on Saturday as the big loser of the eurozone showdown last week because she was forced to accept the crisis-fighting measures championed by countries struggling with their ...

Merkel defends compromise deal on eurozone banks
AngolaPress
Germany - Germany's Chancellor Angela Merkel says she is satisfied with a deal to help finance debt-laden eurozone countries. "I think we found a good compromise," she said after all-night talks which saw her come under heavy pressure from Italy and ...

Eurozone needs a political union: central bank governor
Focus Taiwan News Channel
Taipei, July 1 (CNA) Taiwan's Central Bank Governor Perng Fai-nan said Sunday the proposedeurozone banking supervisory body is reassuring but that the real answer to the troubles in the zone is deep political integration among the participating countries.

Merkel seen as big loser in euro zone showdown
IBNLive.com
By Erik Kirschbaum and John Irish BERLIN/PARIS (Reuters) - Angela Merkel was portrayed across Europe as the big loser of a euro zone showdown in Brussels after the German chancellor was forced to accept the crisis-fighting measures championed by ...

Conservatives and Europe: led by the noes once again
The Guardian
Self-evidently, the eurozone crisis is driving the 17 states who use the single currency towards much tighter collective fiscal controls and perhaps eventual fiscal union. Certainly, were that to happen, the constitutional implications for those states ...

UK PM paves way for EU referendum
RT
British PM David Cameron has laid the foundation for a possible referendum on the UK's EU membership, saying that “voters deserved a real choice.” He fears that UK interests might be undermined by EU legislation and said it was time for a change.

RT

Eurozone inflation steady
Business Recorder (blog)
Eurozone inflation held steady at a 16-month low in June, kept in check by a sharp fall in oil prices and supporting an already strong case for a near.

Poland's growth defies eurozone crisis
Financial Times
Ask Krzysztof Szymanski, sales director at Tomex, a brakes parts manufacturer, why Poland has seen the fastest growth in the EU since the economic crisis hit in 2008 and he offers a simple explanation. “Workers in the rest of Europe are simply.

The EuroCrisis: Far From Over
International Business Times
Economist Shayne Heffernan takes a look at the latest from Europe. Markets mistakenly rallied after the EU leaders made many promises with few details, while it sounded good to market players, the reality is even if they kept all their promises the ...

The EuroCrisis: Far From Over
Live Trading News
Lots of Political Maneuvers in Europe, but no answers yet. Economist Shayne Heffernan takes a look at the latest from Europe. Markets mistakenly rallied.

Live Trading News

Cameron: Time for Brits to Figure Out EU Relationship
Newser
(Newser) – With the eurozone crisis forcing European countries ever closer together—think eurobonds, stimulus transfer payments between countries, and more treaties— Britain's Prime Minister David Cameron is broaching the word "referendum," saying ...

Eurozone: Markets Applaud Latest Can-Kicking, Arnold Kling ...
By Arnold Kling
Setting up an agency that is capable of resolving (shutting down, selling or recapitalizing) banks is perhaps the most urgent part of such a banking union and can be done independently from pooled deposit insurance or common supervision, ...
EconLog: Library of Economics...

Eurozone agrees on bank recapitalisation - BlackListedNews.com
Eurozone ... Financial control. The deal also tried to sort out a problem with a previous agreement to lend money to Spain's banks. There had been confusion over where that money would come from, and which lenders would have priority in ...
BlackListedNews.com

Eurozone Debt Crisis: EU Reaches Bailout Deal | The Wall Street ...
By Dr. Kent Moors
The recent marathon session in Brussels was the EU Council's 18th meeting on the Eurozonedebt crisis. As it is comprised of the heads of government fro...
The Wall Street Examiner

Why Germany's TARGET2-Based Eurozone Preservation ...
By Stefan B
We have covered the topic of the German TARGET2 imbalances previously, both from the perspective of what catalysts can lead the Bundesbank to suffering massive losses (the one most widely agreed upon being a collapse of the Eurozone, ...
Financial Survival Network

Sunday PS: The monetary Titanic? - Mail Online - Dan Atkinson's blog
By Dan Atkinson
AS Private Eye may have put it, do you remember where you were last Friday when news broke that the eurozone leaders had agreed to, um, well, a new package of crisis measures that will almost certainly…see them through to the next ...
Mail Online - Dan Atkinson: It's...

EU Summit: Some Good Progress, But Any Game Changers? « Euro ...
By Megan Greene
This EU summit marked many firsts for eurozone crisis era EU summits: it was the first time Greece hasn't been discussed in years, it was the first time Italy and Spain bonded together and it was the first time President Hollande attended an EU ...
Euro Area Debt Crisis by Megan Greene

EuroWatch: Things to come, cautions, banks, more | eats shoots 'n ...
By richardbrenneman
... “breakthrough” for Italy and Spain. But on the long-term confidence-boosting plan for theeurozone, there was little headway on the actual proposals – mutualising debt, establishing aeurozone treasury, ceding budgetary powers to Brussels.
eats shoots 'n leaves

Euro Zone Riddled With Shaky Banks - NYTimes.com
Spain and Cyprus may be the current locus of European anxiety, but many other banks are in a weakened state, cut off from money markets because investors ...
www.nytimes.com/.../euro-zone-riddled-with-shaky-banks.ht...

Merkel seen as big loser in euro zone showdown
Reuters
BERLIN/PARIS (Reuters) - Angela Merkel was portrayed across Europe as the big loser of aeuro zone showdown in Brussels after the German chancellor was forced to accept the crisis-fighting measures championed.

The Muddled Way
New York Times
Editorial. The Muddled Way. Published: June 29, 2012. Judging from the strong rally in global financial markets, European leaders meeting this week in Brussels managed once again to say and do enough to quell the euro-zone debt crisis. For a day, anyway.

Liam Fox: No more waiting – we must renegotiate our position
Telegraph.co.uk
Conservatives are often criticised for having a political obsession with the European Union yet its failure to deal with the euro and the crisis in the Eurozone is now posing a real threat to the wellbeing of the whole global economy. I will return to ...

Germany agrees to concessions in eurozone pact
San Francisco Chronicle
The new plan would kick in only once a regional supervisor is established to regulate banks in the 17-nation eurozone - itself a major step that could see regulators based at the European Central Bank override the authority of national governments ...

San Francisco Chronicle

Eurozone debt plan drives up global markets
Honolulu Star-Advertiser
Business - Hawaii's news leader for Hawaii news. Honolulu Star-Advertiser provides up to the minute breaking news in Honolulu, Hawaii. With expanded photo coverage of Hawaii sports, entertainment, nightlife and insightful business news coverage.

How all-night Brussels showdown pulled euro back from brink
Chicago Tribune
BRUSSELS (Reuters) - They were bleary-eyed in their crumpled suits early on Friday morning, but euro zone negotiators were smiling after a hard-fought night of talks that struck a surprisingly.

Eurozone Leaders Agree to Bail Out and Supervise Banks
PBS NewsHour
After tough negotiations, eurozone nations brokered a deal to use a bailout fund to recapitalize banks in European Union states and establish a supervisory mechanism for banks. James Mates of Independent Television News provides a report.

Euro crisis: Hopes of recovery as Kenny secures bank deal
Irish Independent
THE dramatic deal on Ireland's bank debt, secured yesterday by Taoiseach Enda Kenny, could pave the way for a major upturn in the economy.

Irish Independent

Germany approves euro-crisis fighting tools
The Local.de
The German parliament has overwhelmingly approved two euro-crisis fighting tools rallying to a call by Chancellor Angela Merkel to show the world Germany's commitment to the single currency.

The Local.de

Eurozone crisis: David Cameron claims EU victory – but Italy is big winner
Scotsman
DAVID Cameron claimed last night to have safeguarded British interests, as theeurozone took a major step towards banking union to save the beleaguered single currency.

Scotsman

Germany ratifies eurozone rescue fund
The Australian
GERMANY'S parliament ratified the eurozone's permanent bailout fund today, as well as rules that enshrine German-style budget discipline in eurozone countries and most other European Union members, despite widespread criticism of Chancellor Angela ...

EU: New Tory battlelines drawn
Telegraph.co.uk
The dramatic developments come in the wake of last week's Brussels summit in which leaders of the eurozone countries took the first steps toward a rescue plan for the single currency. At the same time, approximately 100 Conservative MPs wrote a letter ...

Telegraph.co.uk

Broke Cyprus hopes to ride euro crisis as EU head
AFP
NICOSIA — By a cruel twist of fate Cyprus is poised to take the chair as EU president tasked with guiding Europe out of financial chaos just as it becomes the fifth eurozone state to seek a Brussels bailout. Cyprus has the unenviable tag of being the ...

AFP

Erroneous Eurozone euphoria
Daily Caller
Both Spain and Italy have reached the point of no return.

German parliament approves EU bailout fund
Reuters
Merkel wins 2/3 majority with opposition help in bothchambers* Eurosceptics angered by concessions at EU summit* Court will delay ratification, may seek referendumBy Gareth Jones and Stephen BrownBERLIN,

Germany denies Schaeuble talk of Greece euro exit
Reuters
KREFELD, Germany (Reuters) - A deputy German Finance Minister dismissed a magazine report saying Finance Minister Wolfgang Schaeuble had told conservative members of parliament on Friday to prepare for.

European leaders reach key deal on banks
CNN
The deal means Spain's formal request this week for eurozone bailout funds to recapitalize its troubled banking sector will not add to its sovereign debt. Madrid had feared the increased debt load would send its borrowing costs even higher. The debate ...

G20 says eurozone decisions are important step forward
Reuters
MEXICO CITY, June 29 (Reuters) - Euro zone leaders' moves tolet their rescue fund inject aid directly into stricken banksfrom next year and intervene on bond markets to support troubledmember states.

Euro Crisis 2012: German Parliament Approves E.U. Bailout Fund
By The Huffington Post News Editors
By Gareth Jones and Stephen Brown BERLIN, June 29 (Reuters) - Germany's parliament resoundingly approved the euro zone's permanent bailout scheme and new budget rules on Friday, but legal hurdles remain and Chancellor Angela ...
The Full Feed from HuffingtonPost.com

China's strategic advantages: helping out the euro zone | East Asia ...
By Hinrich Voss
Authors: Hinrich Voss and Jeremy Clegg, University of Leeds The changing fortunes of the world's mature economies relative to the emerging economies have.
East Asia Forum

Angela Merkel: Big Loser Of Eurozone Showdown
By The Huffington Post News Editors
Popular at home for insisting on austerity measures and tough conditions for those indebtedeuro zone states getting help, Merkel was quick to put a positive spin on the summit, telling reporters: "We had an interest in finding solutions." There ...
The Huffington Post | Full News Feed

Health Care, the Euro Crisis, and Entitlement Slavery
By Ralph Peters
In an age of the globalization of everything from bird flu to bad debts, we still try to compartmentalize, pretending that what happens in Athens, stays in Athens. Thus, too many Americans fail to connect the massive attempt at wealth transfer ...
Accuracy In Media

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