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

Friday, July 6, 2012

A Scenario of Euro Zone's Unraveling

Spinning a Scenario of Euro Zone's Unraveling
New York Times
A report by Roger Bootle and economists at Capital Economics in London was the winning entry in a contest to see who could come up with the most elegant solution for how the euro zone might unravel.

Euro-Zone Breakup Is Part of Solution to Crisis
Washington Post
Roger Bootle, managing director at Capital Economics Ltd., talks about the outlook for the euro zone, central bank rate cuts and monetary stimulus. Bootle, who won the Wolfson Economics Prize for proposing a contingency plan for the breakup of the euro ...

Debt crisis: Greece admits it's off track on bail-out terms, as troika inspects - Telegraph: "Greece's new finance minister, Yannis Stournaras has admitted that the country is "off-track" to meet the conditions of its bail-out agreements while his predecessor warned Athens would need three-years to get back on track."

Japan's Debt Addiction Creating 'Mother of All Bubbles' - Yahoo ...
Japanese Prime Minister Yoshihiko Noda (AP Photo/Koji Sasahara) With the debt crisis in Europe showing no sign of letting up, Japan is increasingly being ...

Eurozone remains weak, warns Mario Draghi, as ECB cuts interest rates - Telegraph: "Mario Draghi has warned that the eurozone remains weak with further turbulence to come, as the European Central Bank cut interest rates to a new record low."

Eurozone boosts German industrial orders in May
Sacramento Bee
Official figures show that German industrial orders rose 0.6 percent in May compared with the previous month, largely on the back of higher orders from its partners in the eurozone.

BOE Restarts QE as Euro Crisis Threatens to Prolong Slump
The Bank of England restarted bond purchases two months after halting its expansion of stimulus as the deteriorating outlook spurred policy makers to ramp up efforts to kick start a recovery.

German industry gets surprise euro zone boost
(Adds analysts, details, background)By Michelle MartinBERLIN, July 5 (Reuters) - German industrial ordersunexpectedly rose in May as demand from its euro zone peerspicked up, suggesting Europe's largest.

Euro zone economy weak, faces risks: ECB's Draghi
FRANKFURT (Reuters) - European Central Bank President Mario Draghi said on Thursday the euro zone economy was weak and facing risks, but that inflation was not posing a problem.Inflation rate pressure...has.

Euro-Zone Demand Powers German Manufacturing Gains
NASDAQ News: Euro-Zone Demand Powers German Manufacturing Gains.

ECB cuts eurozone rates to record low of 0.75%
BBC News
The European Central Bank has reduced its key interest rate from 1% to 0.75%, a record low for the eurozone.

BBC News

Eurozone remains weak, says Mario Draghi
The Guardian
Yield on 10-year Spanish bonds jumps to 6.78% - dangerously close to the 7% interest rate economists say is unsustainable.

The Guardian

A Striking Solution for Euro Breakup
Wall Street Journal (blog)
The ideal way for the euro to restructure is for the core, the strongest countries encompassing Germany, Austria and the Netherlands and, possibly, Finland, to withdraw from the euro and create their own core currency union.

Wall Street Journal (blog)

ECB's Draghi: Euro zone economy weak, faces risks
FRANKFURT, July 5 (Reuters) - European Central BankPresident Mario Draghi said on Thursday theeuro zone economywas weak and facing risks, but that inflation was not posing aproblem.Inflation rate.

Eurozone crisis live: ECB cuts interest rates, as Bank of England boosts QE by ...
The Guardian
Central banks react: the Bank of England pumps £50bn more into the economy, and the European Central Bank lowers interest rates.

The Guardian

Eurozone exit plan wins Wolfson Economics Prize
The Independent
The greatest threat to the future of the single currency is that Greece could exit the euro and prosper so much that other nations would want to leave too, said Roger Bootle, of Capital Economics today.

Eurozone banks climb after ECB action
Financial Times
News that Volkswagen had set in motion plans to integrate with Porsche provided a rare bright spot amid a sea of red across European markets on Thursday. VW said it would buy the half of Porsche that it does not own for €4.46bn, after the boards of.

End Of The Eurozone Crisis In Sight?
Seeking Alpha
In essence, the eurozone crisis is a balance of payments crisis, engendered by the introduction of the euro itself. This created misalignments (the loss of competitiveness in the periphery) and removed ways to deal with them. However, there is some ...

Draghi: Weak Eurozone Growth Justified Rate Cut
RTT News
A weak economic outlook and the absence of an inflation threat justified the European Central Bank's decision to cut interest rates to the lowest in the short history of the 17-nation currency block, ECB President Mario Draghi told reporters Thursday.

RTT News

Eurozone remains weak, warns Mario Draghi, as ECB cuts interest rates
An eventually recovery in the eurozone will be "gradual", with stresses in sovereign debt markets - notably Italy and Spain - acting as a brake on momentum. Italian 10-year bond yields rose above the 6pc danger level on Thursday afternoon, with Spanish...


Eurozone crisis: Tough questions for Franco-German axis after Merkel's big defeat
The Guardian (blog)
Joschka Fischer: Germany is strong, but not strong enough to take on Europe's other major players in tandem.

The Guardian (blog)

Lagarde Consumed by Euro Crisis Steers Tough Love at IMF
San Francisco Chronicle
Discussing climate change was a welcome break for Christine Lagarde from the European debt crisis that has consumed her first year as director of the International Monetary Fund. [...] she flew to Luxembourg to urge finance ministers of the 17 euro ...

The euro crisis
The Economist
WAS Europe's 19th crisis summit, held in Brussels on June 28th and 29th, a game-changer? Judging by the euphoria in financial markets and among many commentators, the answer seems to be yes. Yields on Italian and Spanish bonds fell sharply as ...

The Economist

What Euro Crisis?
Project Syndicate
Crises are usually defined by sustained economic decline, high and long-term unemployment, poverty, rampant inflation, a precipitous fall in the exchange rate, fiscal deficits, high borrowing costs, and political dysfunction. But only a handful of.

Eurozone rate cut to boost growth
economy - The European Central Bank has cut borrowing costs to a new record low trying to breathe life into a weakening eurozone economy. The main interest rate was reduced from 1.0…


Amid euro crisis, some Irish luck
Globe and Mail
The euro zone wants a success story for its hapless crisis management. Ireland is the best candidate. So last week's euro summit dangled a big carrot: that Dublin's punishing bank bailout which brought the country to its knees may be rejigged. Ireland...

Globe and Mail

Eurozone in focus as ECB makes interest rate decision
At least with the headlines focusing on the Libor issue for once we don't have to talk about the single currency, but today the focus will be back on the eurozone.

Eurozone news hampers FTSE gains
The Press Association
Stimulus measures from central banks across the world have failed to trigger a meaningful rally for London's leading shares index. The Bank of England pumped another £50 billion into the UK economy, while interest rates in the eurozone and China were ...

Best Greek exit plan? Act fast and in secret
MarketWatch (blog)
Greece has been the focus of much debate regarding the future of the euro, and many economists have suggested that a Greek exit from the eurozone is all but inevitable. How to tackle such an unprecedented move, however, has been even more puzzling.

Eurozone exit: $390000 prize for winning escape plan
A Wolfson Economics Prize worth $390000 has been awarded to a top British economic consultancy for the best plan for dealing with member states leaving theeurozone.


BoE ramps up stimulus to fight recession, eurozone contagion
Economic Times
Bank of England decided pump out another £50 bn of stimulus cash, in a bid to haul Britain out of recession and ward off contagion from eurozone.

Eurozone Purchasing Gauge Backs Rate Cut Expectations
Journal of Turkish Weekly
The euro zone's private sector downturn eased only slightly in June as companies slashed prices, according to business surveys yesterday that supported expectations the European Central Bank will cut interest rates this week. Markit's Eurozone ...

Two Reasons Why Brent Could Head Back to $110/Barrel
Euro-Proof Investing. Will Europe's economy stabilize, or will it collapse? Here's what you need to know about the euro zone debt crisis. HOT ON FACEBOOK. Two Reasons Why Brent Could Head Back to $110/Barrel. Published: Thursday, 5 Jul 2012 | 2:29 ...


BOE Restarts QE as Euro Crisis Threatens to Prolong Slump ...
By Newswires
Globe and MailBOE Restarts QE as Euro Crisis Threatens to Prolong SlumpBloombergThe Bank of England restarted bond purchases two months after halting its e...
The Wall Street Examiner

Eurozone Composite PMI Signals Steep Rate of Contraction
By noreply@blogger.com (Mike Mish Shedlock)
Mish's financial blog covers global news and macroeconomic events regarding the world economy. The blog's primary focus is inflation, deflation, and hyperinflation topics, especially currencies, gold, silver, crude, oil, energy and precious ...
Mish's Global Economic Trend Analysis

Moves to solve the eurozone crisis threaten US recovery - Lloyd's List
By Nigel Lowry
Key challenges include how Europe resolves its debt crisis and consumer nervousness.
Lloyds List: News

Banks Are Now in Control of Eurozone « SGTreport – The Corporate ...
Banks Are Now in Control of Eurozone. by Greg Hunter, USAWatchdog: Anselm Rothschild famously said, “Give me the power to issue a nation's money; then I do not care who makes the law.” It looks like the bankers are taking control of the ...
SGTreport - The Corporate Propaganda...

Germans need to pay for much of Irish bailout after Euro crisis -- Finally
German Chancellor Angela MerkelThe agreement reached by European leaders in the small hours of last Friday morning can be seen in two ways from an Irish perspectiveThe shift in European policy allowing the trillion euro European ...
IrishCentral.com - Top Stories

Center for Art Law: Financial Crisis Leads Many European Nations ...
By Ariel Greenberg
In the wake of extreme financial pressures, the local Venetian government has made a painful and somewhat desperate decision; it will put the Palazzo Manfrin--one of the floating city's most magnificent palaces--up for sale for $20.5 million.
Center for Art Law

Germany's economy is only king in the blind valley of the Eurozone ...
By Detlev Schlichter
On Tuesday, July 3, London business paper City A.M. ran an editorial I wrote on Germany. The text is below. In the present debate on the Euro crisis, Germany is frequently portrayed as a model of economic strength, a beacon of fiscal ...

Germany rebuffs Obama's advice on euro crisis - Yahoo! News
From Yahoo! News: Germany's finance minister is rejecting U.S. President Barack Obama's calls on Europe to move faster in fighting its debt crisis, telling him to ...

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