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

Friday, July 20, 2012

Spanish debt crisis returns as Germany nears bailout fatigue

Spanish debt crisis returns as Germany nears bailout fatigue - Telegraph: "Spanish borrowing costs have surged to euro-era highs despite draconian fiscal cuts and backing from the German parliament for the country’s €100bn (£78bn) bank rescue package.Yields on five-year bonds jumped to a fresh crisis peak of 6.46pc at a closely-watched auction as hopes fade for fresh stimulus from the European Central Bank and direct recapitalisation of Spanish banks by the EU bailout find, the European Stability Mechanism (ESM). “Demand for Spanish paper is collapsing, even for shorter-dated debt which is very worrying and raises the spectre of Spain losing market access,” said Nicholas Spiro from Spiro Sovereign Strategy. Marchel Alexandrovich from Jefferies Fixed Income said the markets are already bracing for second bigger rescue of around €400bn. “A few more weeks like this and Madrid is going to decide to it has nothing more to lose and call for a full sovereign bail-out,” he said. “Then we will find out if there really is any money in the EU kitty. “If the ECB goes on holiday without doing anything more, this is going to snowball. We’re way past point where any country can deliver fiscal measures on its own. People are not going to buy Spanish and Italian debt right now whatever ever they do. There has to be a circuit breaker . . . " 

Did Fixing Libor Keep Financial Crisis From Getting Worse?
CNBC.com
That, at least, is the thinking behind those who believe the scandal behind crisis-era rates for Libor — the London Interbank Offered Rate—probably won't produce criminal prosecutions. Those on the other side of the argument, though, say the Libor scandal is ...

Euro-Zone Crisis? What Crisis? FX Option Trader Fears Melt
Wall Street Journal
The downward trend began around the time of the June 28-29 summit of European Union leaders, which agreed to a broad deal to create a single supervisory body for euro-zone banks, recapitalize Spain's weaker banks and empower the bloc's permanent ...

Spanish Borrowing Costs Surge, Reviving Worries About Euro Zone
New York Times
Recent euro zone accords and moves by the European Central Bank have reduced borrowing costs for countries considered to be the safest for investors, like Germany and the Netherlands, and for those judged to be the next-most secure, like France and ...

Spain, France auctions show widening gap in euro zone
Reuters
MADRID (Reuters) - Spain's five-year borrowing costs hit new euro-era highs at an auction on Thursday while France paid less than 1 percent for similar bonds as investors increasingly marginalise southern economies from what they see as the euro zone's ...

Euro zone's Spain aid for bank recap, not other use -Commission
Reuters
Up to 100 bln offered by euro zone is for Spain's banks only. * No link between Spanish bank aid and any other kind of support (Adds details, background). BRUSSELS, July 19 (Reuters) - The sum of up to 100 billion euros ($122 billion) that the euro zone has ...

Euro zone's Spain aid for bank recapitalization, not other use: Commission
Chicago Tribune
BRUSSELS (Reuters) - The sum of up to 100 billion euros ($122 billion) that the euro zone has agreed to lend to Spain is only for recapitalising the country's banks and not for any other possible use such as bond market intervention, the European ...

Euro-Zone Current-Account Surplus Rises
Wall Street Journal
FRANKFURT—The euro zone's current-account surplus increased in May from April, and investors' holdings of euro-zone equity and debt instruments rose sharply over the same period, reversing a previous trend, European Central Bank data published ...

LONDON 2012: Amid financial crisis, several nations struggle to prepare for ...
Washington Post
The financial crisis in Europe has specifically affected the Mediterranean rim, with only a few nations spared. Italy, which bitterly fought with Athens to bring the games to Rome in 2004, is in such dire straits that the capital city dropped its bid for the 2020 ...

Poll: Euro zone back in recession as crisis clouds swirl
Reuters
LONDON (Reuters) - The euro zone has sunk back into its second recession since 2009, a Reuters poll predicted on Thursday, as the debt crisis that has ravaged the continent for over two years continues to stifle growth. A deluge of downbeat data pushed ...

There Is No 'Euro Crisis'
Wall Street Journal
The present crisis is not a European monetary problem at all, but rather a debt problem in some countries—Greece, Spain and some others—that happen to be members of the euro zone. Specifically, these are public-debt problems, stemming from bad ...

Wall Street Journal

Euro Zone Crisis: Wildfires in Greece
Care2.com (blog)
Talk of contagion, of the sovereign debt crisis that began in 2009 in Greece spreading to otherEurozone economies, has proven too true. Last month, the small island country of Cyprus requested a bailout and Spain, whose economy is the eurozone's fourth ...

IMF: Euro zone in 'significant' jeopardy from threat of deflation
Washington Post
Europe could suffer a dangerous bout of deflation if regional officials, including those at the European Central Bank, do not move quickly to support the continent's banks and the wider economy, the International Monetary Fund warned Wednesday.

German fin min warns of contagion before Spanish aid vote
Reuters
BERLIN, July 19 (Reuters) - German Finance Minister Wolfgang Schaeuble warned on Thursday ahead of a parliamentary vote on aid for Spanish banks that even just a perceived insolvency risk in Spain could cause contagion in the euro zone, as could the ...

Weak Slovenian banks highlight euro zone risk
MarketWatch
BRUSSELS (MarketWatch) — Slovenia could well be the sixth euro-zone country to receive a bailout to shore up its troubled banks. Slovenian and EU officials rule out the likelihood, but economists question their promises — similar assurances were made ...

MarketWatch

German Parliament approves Spanish bank rescue
Huffington Post
BERLIN — Germany's Parliament has approved a rescue package worth up to (EURO)100 billion ($122 billion) for Spain's struggling banks, which the finance minister said was needed to help prevent the eurozone's debt crisis spreading further. Lawmakers ...

Merkel wins Spanish aid vote with big majority
Reuters
BERLIN (Reuters) - German Chancellor Angela Merkel easily won a parliamentary vote on a euro zone rescue package for Spanish banks on Thursday despite growing unease in her centre-right coalition about the rising cost of Europe's debt crisis for ...

Eurozone crisis live: Germany approves Spain's bank rescue, after poor Spanish ...
The Guardian
He says without the "excessive nervousness in financial markets" Spain would be able to sort out its banking sector itself, and that by helping Spain, European governments were contributing towards stability in the entire eurozone. This is met with (some) ...

Simon Johnson: I'm Worried Libor Scandal Contributed To Financial Crisis
Huffington Post
On June 1, 2008, Timothy F. Geithner – then president of the Federal Reserve Bank of New York – sent an e-mail to Mervyn A. King and Paul Tucker, then respectively governor and executive director of markets at the Bank of England. In his note, Mr. Geithner ...

Merkel set to win Spanish aid vote despite rebels
Reuters
BERLIN (Reuters) - Chancellor Angela Merkel's authority within her centre-right coalition was at stake on Thursday as uneasy German lawmakers prepared to vote on Berlin's contribution to a euro zoneaid package for Spain's ailing banks. Merkel can count ...
IMF: Eurozone risks deflation, breakup
UPI.com
FRANKFURT, Germany, July 19 (UPI) -- Slow-growth eurozone nations risk deflation, and persistent debt concerns put the eurozone's future in doubt, the International Monetary Fund warned. Countries such as Italy and Spain, where growth is slow and ...

Euro-Zone Concerns Lift Treasury Bonds Despite US Stock Rally
Wall Street Journal
Sentiment on the euro zone's stability was stung Wednesday as reports showed German Chancellor Angela Merkel cast some doubt on whether the European plan would work. Meanwhile, concerns have emerged that Austria might face the risk of another ...

BIS: Banks Cut Lending to Troubled Euro-Zone Countries in 1Q
Wall Street Journal
LONDON--Banks cut lending to troubled euro-zone countries in the first three months of 2012 and sent their money to Germany, likely reflecting uncertainties about the credit-worthiness of a number of European governments and doubts about the solvency of ...

Eurostat Weighs in on Bank Aid
Wall Street Journal (blog)
Eurostat, the European Union's statistic agency, has weighed in on the question of whether a government should still have to retain final liability for any losses that may arise from a “direct” recapitalization of its banks from the euro-zone bailout fund.

Italian parliament approves euro zone bailout fund
Reuters
ROME (Reuters) - The Italian lower house voted on Thursday to approve the European Stability Mechanism, the euro zone's new bailout fund, giving final parliamentary clearance after a vote in the Senate last week. The vote follows approval of the European ...

The Latest Euro-Zone Deal with Spain
ValueWalk
The inflations is predicted by the IMF to be below 2% in 2013 in the eurozone and stay there in 2014; but there is a considerable risk that it will change to negative rates – medium term. The drop in consumption in 2009 coincided with lower oil prices.

Spain Pays Premium on Its Debt
Wall Street Journal (blog)
By Charles Forelle. Spain, the euro zone's most precarious country, raised just under €3 billion in a bond auction Thursday morning, but it paid handsomely to do so amid signs of rapidly evaporating demand for its debt. In the secondary market, traders sold ...

Euro-Crisis Pushes Rates to An Even-Lower Low!
Fox Business
Mortgage rates defied the odds and reached new lows -- again -- making refinancing tempting even for borrowers who already have low rates on their loans. The benchmark 30-year fixed-rate mortgage fell to 3.78% from 3.79%, according to the Bankrate.com ...

John Thomas Financial Chief Economist Issues Analysis on Eurozone Crisis
MarketWatch (press release)
NEW YORK, NY, Jul 19, 2012 (MARKETWIRE via COMTEX) -- John Thomas Financial Chief Economist Mike Norman issued an analysis on the Eurozone crisis, the firm announced today. The in-depth op-ed suggests that Europe would survive for as long as ...

Germany Uses YouTube to Rally Bailout Support
Wall Street Journal (blog)
By William Boston and Susann Kreutzmann. Germany's parliament is expected to give broad backing on Thursday to a European aid package for ailing Spanish banks, but the government left nothing to chance this week, appealing to citizens and lawmakers ...

RealClearWorld - How Religion Shapes Europe's Crisis
By Chris Bowlby, BBC News
Discussion among eurozone leaders about the future of their single currency has become an increasingly divisive affair. On the surface, religion has nothing to do with it - but could Protestant and Catholic leaders have deep-seated instincts ...
RealClearWorld

Spanish Siesta Could Be Made Extinct By Eurozone Crisis
By Chris Greenhough
The legendary Spanish siesta could soon be another victim of the Eurozone crisis, according to Reuters. The concept of an afternoon nap, a time-honored.
The Inquisitr

Can Behavioral Finance Stop a Financial Crisis?
As policymakers around the world continue to deal with the legacy of the 2008 crisis, some are considering incorporating elements of behavioral finance into their proposals as they look to strengthen systems for the future.
AdvisorOne

mainly macro: IMF Blasts EuroZone Policymakers and ECB
By Mainly Macro
IMF Blasts EuroZone Policymakers and ECB. The language of the latest IMF report on the Eurozonecould not be clearer. “The euro area crisis has reached a new and critical stage. Despite major policy actions, financial markets in parts of the ...
mainly macro

IMF urges action as eurozone enters 'critical' phase | ForexLive
By Pete Jackson
More from the IMF which includes the need for a clear timetable of action to restore faith and credibility among the Eurozone states ,and for.
ForexLive

The IMF Goes Bearish on the Eurozone, RealClearWorld - The ...
By RCW Staff
The IMF Goes Bearish on the Eurozone. Posted by RCW Staff at 9:21 AM. Some unusually tough language from a new International Monetary Fund report (pdf) on the Eurozone: The euro area is in an uncomfortable and unsustainable halfway ...
RealClearWorld - The Compass Blog

Euro Crisis: Tax Havens Are Killing Europe | EconMatters
By EconMatters
Euro Crisis: Tax Havens Are Killing Europe. By David Smith at Economy Watch EU states lose an estimated €1 trillion in potential revenue every year from tax evasion and avoidance activities. Much of this amount, it turns out, has been ...
EconMatters

Euro zone current account surplus widens unexpectedly By Forexpros
By Forexpros
Forexpros - The euro zone's current account surplus widened unexpectedly in May, official data showed on Thursday. In a report, the European Central Bank said that the euro zone current account recorded a seasonally adjusted surplus of ...
Forex Pros RSS News Feed | Forex News

The Growing Pressures Likely to Blow the Eurozone Apart - SGTreport
By MRH
The EFSF has no money and relies on drawing down funds from all member states including Greece, Spain, Italy, Ireland, and Portugal, and the chances of the ESM being ratified by the individualEurozone parliaments is very slim. We are told ...
SGTreport - The Corporate Propaganda...

CuriosityCat: The Reformation Redux and today's Eurozone troubles
By CuriosityCat
One German commentator, Stephan Richter, has suggested mischievously that the eurozone'sproblems would have been prevented if only Luther had been one of the negotiators of the Maastricht treaty, deciding which countries could join ...
CuriosityCat

Detroit financial crisis continues » In the U.S. » Workers World
By Abayomi Azikiwe
Detroit — If a legal challenge to the so-called “Financial Stability Agreement” is not dropped by Detroit's Law Department, the State Treasurer's Office says it will withhold $28 million in revenue-sharing funds and give them directly to Bank of ...
Workers World

Eurozone current account at €10.9B in May , Market News - ICN.com
19/07/2012-The current account of the euro zone recorded a seasonally adjusted €10.9 billion in May.
icn.com

Euro zone's Spain aid for bank recapitalization, not other use - forex.ch
By Forex.ch
The sum of up to 100 billion euros that the euro zone has agreed to lend to Spain is only for recapitalising the country's banks and not for any other possible use such as bond market intervention, the … Read more from the original source: ...
forex.ch

IMF Survey: IMF Calls on Eurozone to Take Determined Action in ...
In its latest assessment of economic developments in the eurozone, the IMF calls for determined action towards establishing banking and fiscal unions in the ...
www.imf.org/external/pubs/ft/survey/so/.../INT071812A.htm

Crisis in the eurozone is 'worse than Lehman Brothers collapse ...
Peter Praet, chief economist at the European Central Bank, said the situation in the single currency bloc was worse than the events which toppled the US ...
www.dailymail.co.uk/.../Crisis-eurozone-worse-Lehman-Broth...

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