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

Friday, August 31, 2012

September Offers 15 Days to Cement Europe Crisis Solutions

September Offers 15 Days to Cement Europe Crisis Solutions
Businessweek
Draghi said that may spur the ECB to buy short-dated bonds in the secondary market, albeit only in concert with direct purchases from governments by Europe's rescue fund, with accompanyingeconomic conditions. Buying Bonds. “Unlimited intervention by ...

From the Economist: Clinton, Cardoso and Blair--Three ex-leaders meet in Brazil - " . . . Before becoming president, Mr Cardoso was Brazil's financial minister, and led the Real Plan which introduced a new currency, stabilised the economy and ended hyperinflation. That makes him a veteran of pushing through reforms during crises—and his take was interesting. "The political situation [in the run-up to the Real Plan] was chaos," he said. "Some people said it would be impossible, but my opinion was the opposite. When you don’t have order it is easier to do something, not harder. Europe is approaching a chaotic situation … when it will be easier to impose new rules. . . . " 

Euro-Zone Confidence Falls
Wall Street Journal
Confidence among euro-zone consumers and businesses fell to its lowest in three years in August, below economists' forecasts and suggesting that the debt-saddled currency bloc's economy has further to fall. ... The mood among Spanish businesses also ...

China’s fears grow over eurozone crisis - Telegraph: "China has expressed deep alarm at the escalating crisis in Europe and warned against austerity overkill as Europe's crumbling demand sends shock waves through Asia."

Financial crisis: the printing press has reached its limits - Telegraph: "Central bankers may have averted outright disaster, but they are powerless to do more"

Global shares dip, euro gains ahead of Bernanke speech
Reuters
NEW YORK (Reuters) - Global stocks fell on Thursday on uncertainty over the prospect foreconomic stimulus by the U.S. Federal Reserve while the euro edged up after China voiced some support for the debt-troubled euro zone. ... The euro gained some ...

ECB rescue plan underpins Italian bond auction
Reuters
MILAN/BEIJING (Reuters) - A successful Italian bond auction on Thursday pointed to confidence among investors that the European Central Bank will keep its word and take measures dramatic enough to get a grip on the euro zone's debt crisis. In Beijing ...

German jobless rises as euro crisis bites
Reuters
Gross domestic product (GDP) growth slowed to 0.3 percent in the second quarter as companies, nervous about the debt crisis sweeping southern euro zone states, cut back on investments. Many economists are expecting ... are slashing thousands of jobs ...

Moody's: Euro-Area Crisis Still Poses Greatest Risk to Global Outlook
Wall Street Journal
The global economic recovery is at risk of faltering due to the euro-zone debt crisis, Moody's Investors Service Inc. said in its latest macro-economic risk report. The rating company said globaleconomic growth in 2012 will be materially lower than in ...

METALS-Copper snaps losing streak as China supports euro zone
Reuters
Premier Wen confident of euro zone surviving debt crisis * Signs of pickup in Chinese spot copper demand wane * Tightness emerges in nearby LME aluminium, lead By Eric Onstad and Carrie Ho LONDON/SHANGHAI, Aug 30 (Reuters) - Copper broke a ...

China Offers Cautious Support for Europe
Wall Street Journal
Mr. Wen expressed worries over Europe's debt troubles at a news conference jointly held with Ms. Merkel, on her second trip to China this year to assuage Chinese fears about euro-zone sovereign debt crisis and to boost economic ties. "The Europeandebt ...

Wall Street Journal

Polish economy slows sharply, yields to euro zone gloom
Reuters
There is also little hope of foreign trade driving growth as nearly 80 percent of Poland's exports go to other parts of the EU, where the economic downturn and a debt crisis have crippled demand for goods. Company results published earlier in August ...

Austria watchdog wants wide ECB bank supervisor role
Reuters
ALPBACH, Austria Aug 30 (Reuters) - The European Central Bank should take charge of all euro zone banks, not just those considered lynchpins of the wider banking system, Austria's financialregulator said on Thursday. Helmut Ettl, executive director of ...

Fiscal Cliff Doesn't Look So Bad After the Fall
Bloomberg
Just when you thought you could forget about the fiscal cliff and focus on the Republican and Democratic conventions instead, along comes the Congressional Budget Office to remind us of the impending threat. In its midyear budget and economic outlook ...

Best Sectors to Survive the Fiscal Cliff: Analyst
CNBC.com (blog)
Chances that the U.S. economy will experience the so-called fiscal cliff are about 15 percent, Utz said. If that happens, GDP could experience negative-5 percent growth, “and potentially negative-3 percent for Q2 before we eventually see a bit of a ...

Opinion: Convention ignores fiscal cliff
Bayoubuzz
Opinion: Convention ignores fiscal cliff Ann Romney, Republican presidential candidate Mitt Romney's wife, greets a crowd of supporters on Tuesday, August 28, at the Tampa Bay Times Forum during the Republican National Convention. The convention ...

Are Small Caps Vulnerable to the Fiscal Cliff?
Investorplace.com
Why would the fiscal cliff — the combination of tax increases and spending cuts set to go into effect at the beginning of 2013 — have a disproportionate impact on smaller companies? Unlike the European debt crisis or the concerns about China's growth ...

Potential automatic cuts threaten more than military, progressives say
Macon Telegraph (blog)
ATLANTA -- The so-called fiscal cliff of $1.2 trillion in automatic federal budget cuts that could be triggered in January is an unquantified threat not just to the military, but to industry and social services as well, say progressives. “We're not ...

Moody's Zandi: More QE Will Come, But After the Elections
Moneynews
At the end of the year, tax cuts are scheduled to expire at the same time automatic public spending cuts kick in, a combination known as a fiscal cliff that could send the economy sliding into a recession if left unchecked by Congress. ... Since the ...

How to Safely Scale Down the Fiscal Cliff
NWAOnline (subscription)
WASHINGTON COUNTY — Pundits pounced earlier this year when Federal Reserve Chairman Ben Bernanke warned that the country will face a "massive fi scal cliff " at the beginning of 2013. It seemed we had to extend the Bush tax cuts - or else.

Janus Tax Planning Campaign Designed To Head Off Coming Crisis Of Inaction
Sacramento Bee
29, 2012 -- /PRNewswire/ -- Janus Capital Group Inc. (NYSE: JNS) recently rolled out a campaign to help financial advisers address the pending "fiscal cliff" before the end of the year. Barring action by Congress, $7 trillion worth of spending cuts and ...

Eurozone crisis largest threat to global growth, says Moody's
IFA Magazine
Although the slowdown in emerging markets, particularly China and Brazil, and the approaching USfiscal cliff continue to be risks, the Eurozone sovereign debt crisis is still the largest threat to the recovery in the global economy, according to Moody's.

This Cash Rich $10 Defense Stock Is Oversold
Seeking Alpha
Defense contractors have had a rough go of it in 2012, mainly on the possible impacts generated from any inability to avoid the "Fiscal Cliff" which will mandate some $50B a year in cuts to the overall defense budget. Mercury Computer Systems (MRCY ...

'Fiscal Cliff' … an Illusion or Reality? by Charles Goyette
We do get these buzz phrases about the economy, don't we? A special jargon of the financial press and the commentariat, shorthand expressions intended to suggest the speaker has an especially intimate understanding of economic events.
LewRockwell.com

The 'Fiscal Cliff' is a Second Subprime Collapse - Zillow Real Estate ...
Date: Aug 28th, 2012 The fiscal cliff our economy is ready to dive off of is actually more like a second subprime tsunami. USG is JPMorgan, which has staged Chase as an economic 'reset button' to collapse the currency. The collapse won't be ...
Zillow Advice RSS: Pro-to-Pro

Thursday, August 30, 2012

Merkel and Monti clash over ESM role

Debt crisis: Merkel and Monti clash over ESM role - Telegraph: "Europe's politicial and economic leaders clashed today over debt crisis resolutions, underscoring the sense of chaos and disunity between Brussels and the key eurozone economies." 

US GDP revision is nothing to celebrate, say economists - Telegraph: "America's economy expanded at a faster pace in the second quarter than first estimated, according to a government report that offered few signs it will be built on. "

Angela Merkel stands firm in resisting ESM bank licence - Telegraph: "Angela Merkel has clashed with Italian prime minister Mario Monti over the idea of giving the eurozone's permanent rescue fund a banking licence, as the German Chancellor branded the idea "incompatible" with European treaties."

Merkel, Monti Bide Time until ECB Acts
Wall Street Journal
BERLIN—The leaders of Germany and Italy expressed confidence that they are making headway against the euro-zone debt crisis, but offered no new initiatives as Europe appears stuck until Germany's highest court and the European Central Bank make key...

Wall Street Journal

Markets will wait for ECB silver bullet, but not for long
Reuters
LONDON (Reuters) - Investors have put their faith in the European Central Bank's ability to get on top of the euro zone debt crisis and even if detailed plans take longer to materialize than expected, the momentum in financial markets may prevent an ...

Deposit flight from Spanish banks smashes record in July - Telegraph: "Spain has suffered the worst haemorrhaging of bank deposits since the launch of the euro, losing funds equal to 7pc of GDP in a single month."

Secondary Sources: Draghi on Euro Crisis, Unitended Consequences, Negative ...
Wall Street Journal (blog)
–European Crisis: Mario Draghi writes about the state of the euro zone economy. ... When markets are fragmented or influenced by irrational fears, our monetary policy signals do not reach citizens evenly across the euro area. ... We suggest that ...

Euro near 8-week high, focus on central banks
Reuters
LONDON (Reuters) - The euro traded near an eight-week high against the dollar on Tuesday, buoyed by ongoing expectations of decisive action to tackle the euro zone debt crisis and speculation U.S. policymakers are close to introducing more monetary ...

ECB's Liikanen: Europe Halfway Through Debt-Crisis Marathon
Wall Street Journal
Mr. Liikanen said the past five years since the euro-area sovereign-debt crisis emerged on the heels of the global financial crisis had been long and hard, and he noted that "some researchers think that it may even be another ten years before we return ...

FOREX-Euro stalls near 7-wk high, Aussie still fragile
Reuters
Traders said news that European Central Bank President Mario Draghi was too busy to attend Friday's Jackson Hole meeting of central bankers renewed hopes he could announce a long-awaited plan to tackle the region's debt crisis at the ECB's Sept. ... On ...

In euro zone, a convergence that never was
Washington Post
That schism, as much as the debt and banking-sector problems troubling the region, is at the root of the current crisis and may prove the most difficult issue to overcome. Politicians insist that with the right set of policies and a few years of ...

European shares fall on growth and debt concerns
Reuters
LONDON, Aug 28 (Reuters) - European shares had their worst one-day fall in five sessions on Tuesday as concerns over the global economy and euro zone debt crisis, highlighted by bleak figures from Spain, weighed on equity markets. The FTSEurofirst 300 ...

Euro, Asian shares steady in run-up to Jackson Hole
CNBC.com
In contrast, hopes remained fairly firm for chances that the European Central Bank will soon unveil measures to ease borrowing stress in struggling countries and take a step forward in containing the three-year euro zone debt crisis. ECB President ...

Can Germany Stay at Top of Euro Zone Ratings ... - Yahoo! Finance
Finance: Germany's economic success relative to the rest of the euro zone is well ... rate in the first half of 2012 than in 2007 before the global financial crisis.
finance.yahoo.com/.../germany-stay-top-euro-zone-11333840...

Is the Fiscal Cliff a Big Deal?
New York Times (blog)
Come January, current law provides for significant cuts in federal spending and for tax increases – and thereby significant federal budget-deficit reduction. These provisions have been collectively described as the “fiscal cliff,” which emerged when ...

Will The Fiscal Cliff Turn Dividend Stocks Toxic?
Forbes
The impending fiscal cliff may or may not become a reality but the sense of doom is driven by the fear that dividends will become taxable at much higher rates. It is as if these once beloved holdings have suddenly lost all the characteristics that make ...

'Fiscal cliff' could cut $ 2.8 billion from social programs, $2.1 billion in ...
Newnan Times-Herald
ATLANTA — As voters focus on the election, the state's budget writers are concerned about what comes after and whether Congress avoids the so-called fiscal cliff. The U.S. Budget Control Act triggers a package of tax increases and broad spending cuts ...

NJ Gov.: Democrats Driving Us Off Fiscal Cliff
Washington Post
Aug. 28, 2012 - New Jersey Gov. Chris Christie gave the keynote address at the Republican National Convention in Tampa, Florida Tuesday. He said Democrats aren't being up front with Americans about the fiscal difficulties the country faces ...

Taxmaggedon's Effects on Small Business
Forbes
We recently reported on the fiscal cliff. Combine that with Taxmaggedon and you have one real ugly double feature in the movie theater of U.S. Small Business. Yesterday we blogged about the fiscal cliff. Now, Act II is Taxmaggedon. What is Taxmaggedon?

Water grab could push Nevada over the fiscal cliff
Nevada Appeal
Nevada has its own fiscal cliff looming as a result of the Southern Nevada Water Authority proposal to build a giant 300 mile pipeline from Las Vegas to rural eastern Nevada to export “unappropriated” groundwater. The cost has ballooned from $1 ...

Consumer confidence falls to 9-month low
MarketWatch
The threat of the fiscal cliff has prompted some business leaders to warn that they may delay major projects or freeze hiring plans until they know whether U.S. lawmakers will reach a compromise. “This will keep consumers on edge and the economic ...

Dividend Portfolios And The Looming Fiscal Cliff
Seeking Alpha
As Republicans and Democrats continue their gridlocked ways in Washington, their dallying about could have serious deleterious effects on all of us who invest in dividend paying stocks. Remember the ending to the movie "Thelma and Louise?" It's ...

How to Safely Scale Down the Fiscal Cliff | Inequality.org
By Salvatore Babones
Salvatore Babones. Pundits pounced earlier this year when Federal Reserve Chairman Ben Bernanke warned that the country will face a “massive fiscal cliff” at the beginning of 2013. It seemed we had to extend the Bush tax cuts — or else.
Inequality.org

Wednesday, August 29, 2012

Catalonia asks for €5bn bailout from Spain

Catalonia asks for €5bn bailout from Spain - Telegraph: "Spain's north-eastern region of Catalonia, which represents around a fifth of the country's economic output, will tap a state liquidity facility for just over €5bn, a spokeswoman for the region's economy head has said."

Greece risks EU clash with plans for China-style "economic zones" - Telegraph: "The Greek government said it is planning to launch Chinese-style “economic zones” with special tax and regulatory breaks in a desperate bid to attract foreign investment."

Debt crisis: Mario Draghi cancels Jackson Hole appearance - Telegraph: "Debt crisis: Mario Draghi cancels Jackson Hole appearance European Central Bank president Mario Draghi will not attend the US Federal Reserve's Jackson Hole gathering of central bankers later this week due to a heavy workload, a spokesman said Tuesday."

The Euro Crisis Is Back From Vacation
New York Times
In June, it seemed as if any day might bring about the collapse of the Greek economy and with it, the entire euro zone and its decade-old currency. Then in July and August, it seemed as if everyone was on vacation. Now they're back — finance officials ...

New York Times

GLOBAL MARKETS: Financial Markets Await Cues From Fed, ECB
Wall Street Journal
... signs of fresh cues on monetary policy easing during his symposium speech Friday, while markets hope for further indications from the European Central Bank soon on how it intends to contain the euro-zone debt crisis. Meanwhile, ECB chief Mario ...

The End of the Euro Zone's Phony War
Wall Street Journal
European Central Bank President Mario Draghi's late-July pledge to do "whatever it takes" to ensure the euro survives took the crisis off the boil in August, with Spanish and Italian yields falling sharply. But one reason for the calm is that there has ...

Euro lower versus dollar; Bernanke ahead
Reuters
NEW YORK (Reuters) - The euro fell against the dollar on Monday in thin trading after a bigger-than-expected drop in German business sentiment even as it raised hopes in some that the euro zone'slargest economy will do more to revive the bloc's growth ...

Spain, Italy Borrowing Costs Shrink
Wall Street Journal
Spain and Italy--key points of tension in Europe's drawn-out debt crisis--both successfully cleareddebt auctions with sharply lower borrowing costs Tuesday, suggesting that investors are confident that the European Central Bank will embark on a fresh ...

Fitch: U.S. triple-A rating threatened by fiscal cliff
MarketWatch (blog)
In an unprecedented move, Standard & Poor's a year ago downgraded the U.S.'s rating to AA-plus from triple-A. Fitch and Moody's Investors Service still have a triple-A rating on the U.S. The fiscal cliff refers to the scheduled tax increases and ...

Small Businesses Approach the Fiscal Cliff
Forbes
We hear a lot about the fiscal cliff these days and our clients, independent business owners, are deeply concerned about its effect; however, they may not actually know what the fiscal cliff is or, for that matter, what it means. There are potentially ...

How to Safely Scale Down the Fiscal Cliff
Truth-Out
Federal Reserve Chairman Ben Bernanke during a hearing before the Senate Banking Committee in Washington, July 17, 2012. (Photo: Stephen Crowley / The New York Times) Pundits pounced earlier this year when Federal Reserve Chairman Ben ...

RICHARD KOO: If History Is Any Guide, Hitting The Fiscal Cliff Will Lead To ...
Business Insider
In his new note, Nomura's Richard Koo comments on the fiscal cliff (the automatic spending cuts and tax hikes that will kick in this year if Congress doesn't do anything), and a CBO report that anticipates a mild recession if that happens. ...I think ...

Business Insider

The CBO's Dark Predictions for the Fiscal Cliff
U.S. News & World Report
Loading... Published on Aug 27, 2012 by usnewsandworldreport. U.S. News editor Simon Owens sits down with economics reporter Danielle Kurtzleben to discuss a new CBO report with updated projections on the effect of the fiscal cliff. To read more about ...

Tokyo Also Faces Fiscal Face-Off
Wall Street Journal
Just as the US faces a "fiscal cliff," Japan may be slinking toward a budgetary precipice of its own. The opposition-controlled Upper House of Parliament is expected to pass a censure motion Wednesday against Prime Minister Yoshihiko Noda and then ...

Using IRAs to Avoid the Fiscal Cliff
Investing Daily
Taxes will increase, especially for investors, in 2013 and beyond. The only question is how high they will increase. The 3.8% tax on investment income that was enacted as part of health care reform will go into effect. The Bush tax cuts, payroll tax ...

How a carbon tax could curb the deficit
Washington Post (blog)
With the United States facing the expiration of a slew of tax cuts in 2013—the dread “fiscal cliff”—there has been plenty of interest in offbeat tax-reform proposals. And one idea that a few economists keep knocking around is a fee on carbon ...

Dick Bove: Ignore Fiscal Cliff, Buy Stocks
CNBC.com
“There's a seasonality in the entire stock market this time of year. Since 1888 there has been a seasonal thrust.” Even with the fiscal cliff, Europe's financial crisis and all the other headwinds in the market, Bove told us he's a buyer of stocks. “My ...

Lawmakers must avoid financial cliff
Pocono Record
The galling thing about this is we need not have gotten to this point had Congress come to a reasonable agreement on solving a "fiscal cliff" that's been staring every lawmaker in the face for months. But thanks to the continuing stalemate, on Jan.

'Fiscal Cliff' looms ahead for economy - SFGate
As the summer of 2012 draws to a close, let's take a look at some of its greatest hits: There was "Call Me Maybe" (incessant pop song), "The Avengers" (box ...
www.sfgate.com/.../Fiscal-Cliff-looms-ahead-for-economy-38...

U.S. Headed For 'Fiscal Cliff' | The Onion - America's Finest News ...
According to the Congressional Budget Office, if Republicans and Democrats don't resolve theirbudget stalemate by year's end, they may push the nation over a ...
www.theonion.com/articles/us-headed-for-fiscal-cliff,29292/

White House: Republicans block 'fiscal cliff' deal
The White House blamed Republicans for blocking the easiest solution to the ' fiscal cliff' that threatens another recession in 2013.
content.usatoday.com/communities/theoval/post/2012/.../1

Krauthammer on Fiscal Cliff - National Review Online
Noah Glyn writes on NRO: Don't worry, Dr. K's shorts are not, contrary to popular belief, in a ...
www.nationalreview.com/.../krauthammer-fiscal-cliff-noah-gl...

APEC meeting to focus on euro zone headwinds: US's Brainard
Reuters
Euro Zone ». WASHINGTON | Mon Aug 27, 2012 2:40pm EDT. WASHINGTON (Reuters) - The euro zone economic crisis and role that emerging economies in Asia can play in boosting the global economy will be the focus of a regional meeting of Asia-Pacific finance ...

Stock investors gear up for more volatile September
Reuters
21 are in demand, traders said, in the run-up to events that could result in fresh economic stimulus cash being pumped into markets and new plans to fight the euro zone debt crisis. Or not. "Investors remain very cautious. A lot of investors we speak ...

GLOBAL MARKETS-Asian shares ease in narrow range, euro dips
Reuters
MSCI Asia ex-Japan eases 0.4 pct, Nikkei turns negative on China concern * Waning risk appetite weighs on euro, Aussie as yen firms * Growth worry outweighs Fed, ECB stimulus expectations * European shares seen falling By Chikako Mogi TOKYO, Aug 28 ...

Dutch Liberals pull ahead of Socialists after debate: poll
Reuters
AMSTERDAM (Reuters) - With just two weeks to go before polling day, Dutch Prime Minister Mark Rutte and his Liberal Party have taken the lead in an election dominated by the euro zone crisis, a survey published on Tuesday showed. Rutte's stronger ...

Amid the Downturn, a New Worry: What if Europe Recovers?
Wall Street Journal (blog)
The crisis afflicting the euro zone's weakest economies has been consistently winning the battle for the attention in this part of the markets, as financial and economiccommentators play tug-of-war with the “will they, won't they” calls on potential ...

Wall Street Journal (blog)

US house prices surprise with annual rise - Telegraph: "US house prices have posted their first annual gain in almost two years, raising hopes that the troubled market can begin to contribute to America's economic recovery."

Tuesday, August 28, 2012

German business confidence falls for the fourth month in a row

Debt crisis: German business confidence falls for the fourth month in a row - Telegraph: "German business confidence it at is lowest level for more than two years according to figures that underscore the drag of the debt crisis on Europe’s powerhouse economy."

Despite the crisis, Britons are still spending like drunkards - Telegraph: "Unchecked addiction to personal and national debt is robbing our children of their future" 

Unilever sees 'return to poverty' in Europe - Telegraph: "Unilever will adopt marketing strategies used in developing countries in order to drive future growth in Europe, as the head of its European business warned that poverty will rise in the region as a result of the debt crisis."

FOREX-Euro climbs but euro zone events may cap gains
Reuters
However, it eked out gains on expectations of further monetary easing by the Fed and action by the European Central Bank to combat the euro zone debt crisis. "The Ifo numbers do not change the outlook for the euro," said Kasper Kirkegaard, FX ...

Morning Briefing: Euro-Zone Talks to Set Tone for Markets
Wall Street Journal (blog)
Austrian-based Erste Group Bank AG, which has exposure both in the currency zone as well as further afield to the European Union's east, fell sharply on Friday after Ms. Merkel ambiguously said she wants Greece to stay in the euro zone but stopped ...

Wall Street Journal (blog)

New Euro Bailout Fund Could Fall Short
CNBC.com
The European Stability Mechanism (ESM) is one of the key pillars of euro zoneleaders' attempts to deal with the debt crisis which threatens to spread its tentacles ever further. It's expected to come into force later this year, as a replacement for ...

CNBC.com

German FM: Euro Crisis Will Define Image of Europe
ABC News
Europe's handling of the financial crisis will determine the way other regions of the world and its own citizens view the continent, affecting foreign investment and prospects for closer political union, Germany's foreign minister said Monday. Speaking ...

Lithuanian Deposits Reach Record as Debt Crisis Forces Savings
Businessweek
Lithuanians are holding on their money and businesses are postponing investment plans as the debt crisis clouds the economic outlook. Bank profitability is being eroded by low demand for credit, Stasys Kropas, head of the banking association, said in ...

FOREX-Euro subdued, capped by euro zone risks
Reuters
LONDON, Aug 27 (Reuters) - The euro eased on Monday, taking a breather after last week's rally, with investors wary before the release of an influential survey on German business sentiment and a slew euro zone events in coming weeks. While the ...

European Stock Futures Drop; ThyssenKrupp May Move
Bloomberg
European Stocks Climb Amid Debt-Crisis Talks. By Sarah Jones - 2012-08-27T16:07:12Z. European stocks rose as Germany's Finance Minister Wolfgang Schaeuble said the continent's two largest economies will create a working group to strengthen the ...

FOREX-Euro steady, seen capped by euro zone risks
Reuters
SINGAPORE, Aug 27 (Reuters) - The euro held steady against the dollar on Monday, taking a breather after last week's rally, with its upside seen capped ahead of major euro zone events coming up over the next few weeks. While the euro could find support ...

Repeal of Glass-Steagall Caused the Financial Crisis
U.S. News & World Report (blog)
The oldest propaganda technique is to repeat a lie emphatically and often until it is taken for the truth. Something like this is going on now with regard to banks and thefinancial crisis. The big bank boosters and analysts who should know better are ...

U.S. News & World Report (blog)

XE.com - German, French finmins to coordinate euro zone proposals
The finance ministries of Germany and France will launch a working group with a view to making joint proposals on euro zone issues like fiscal and banking union, German Finance Minister Wolfgang Schaeuble said on Monday.
XE Forex News

The Chinese Are Buying Up Spain's Tapas Bars As The Euro Crisis
By Lino Solis de Ovando El Mar
MADRID - Lulu, a Chinese woman who years ago had a small bodega in Madrid, the kind that is open late and on weekends when everyone else is resting, is now the owner of a tapas bar. She started by selling beer for one euro in the street, ...
Business Insider

Dollar steady to lower as markets focus on euro zone By Forexpros
By Forexpros
Forexpros - The U.S. dollar was steady to lower against its major counterparts on Monday, as investors remained focused on developments in the euro zone, amid ongoing fears over the worsening of the region's financial crisis.
Forex Pros RSS News Feed | Forex News

Are we in the Next Phase of the Euro Crisis? - Common Sense ...
By CSF -
The one-two punch is the latest in a series of efforts by corporations, central banks and individuals to move money out of crisis-stricken euro-zone countries as the debt crisis envelops an ever-larger part of the continent. Such currency moves are bets on the future of national economies. The recent ...Capital flight has been at the root of the European financial crisis since it began more than two years ago. In the beginning, the issue was mostly a reshuffling of money within the euro ...
Common Sense Forecaster

Monday, August 27, 2012

Broken promises hinder euro zone's recovery

Broken promises hinder euro zone's recovery
Washington Post
The gap between what E.U. governments announce they will do about the region's two-year-old debt crisis and what they do in practice has been a big factor in continued skepticism among lending institutions that buy sovereign debt. That has helped ...

US Monetary Policy Since the Financial Crisis
Wall Street Pit
The Federal Reserve Bank of New York announced on Thursday that it had sold the last remaining securities from its Maiden Lane III portfolio, successfully closing the chapter on its assistance to insurance giant AIG. I thought this would be a good ...

German minister rejects more time for Greece
Huffington Post
On Sunday, she dodged questions on the subject during an interview with German public TV station ARD. Instead, she insisted that "we are at a crucial moment in the fight against the debt crisis and that's why I think we should all weigh our words ...

Debt crisis: ECB rescue plan could be "addictive like a drug", says Weidmann
Telegraph.co.uk
Debt crisis: ECB rescue plan could be "addictive like a drug", says Weidmann. CENTRAL bank financing can be “addictive like a drug”, the president of the Bundesbank has warned, in comments that emphasize the ... Louise Armitstead ». In Financial Crisis ...

China gets creative as the cultural revolution grows - Telegraph: "On the banks of the Chu river in Wuhan, a giant 2.5bn yuan (£250m) theatre, shaped like a red Chinese lantern, is under construction."

Greek PM takes debt crisis talks to Paris
PakistanToday.com.pk
Samaras said he had assured the French president that Greece was determined to overcome the debt crisis and remain in the euro zone, which would show that Europe was capable of solving its problems. “Some are betting that Greece will not make it.

PakistanToday.com.pk

Greek PM in Paris debt crisis talks
Sky News Australia
Greece's prime minister is heading to Paris to try to win more time to pay back the nation's debts. Antonis Samaras was to meet French President Francois Hollande, a day after Germany's Chancellor Angela Merkel offered a ray of hope to Greece ...

Sky News Australia

Risks escalate on euro crisis
The Nation
Risks escalate on euro crisis. Therdsak Thaveeteeratham Senior vice president. Asia Plus Securities August 27, 2012 1:00 am ... The euro zone crisis returns to haunt the market, as Greece is close to needing a third tranche of financial help next month ...

Bundesbank Bank Chief Axel Weber: Bond Buying 'Like A Drug'
Huffington Post
FRANKFURT, Aug 26 (Reuters) - The head of Germany's Bundesbank stepped up his opposition to the European Central Bank's latest moves to battle the euro zone's debt crisis on Sunday, saying that plans to buy bonds risked becoming a drug on which ...

Econbrowser: U.S. monetary policy since the financial crisis
By James Hamilton
U.S. monetary policy since the financial crisis. The Federal Reserve Bank of New York announced on Thursday that it had sold the last remaining securities from its Maiden Lane III portfolio, successfully closing the chapter on its assistance to ...
Econbrowser

Our opinion: Debt crisis looms; leaders needed
Dubuque Telegraph Herald
Our opinion: Debt crisis looms; leaders needed. Story · Comments. Print: Create a hardcopy of this page; Font Size: Default font size: Larger font size. More Information. where we stand It will take compromise to fix the debt crisis. Let's look for ...

French Leader Hails Greeks' 'Painful Efforts'
New York Times
By STEVEN ERLANGER. Published: August 25, 2012. PARIS — President François Hollande of France gave the new Greek prime minister some reassurance in a meeting here on Saturday, expressing his commitment to keeping Greece in the euro zone.

New York Times

In Euro Crisis, Fingers Can Point in All Directions
New York Times
The question of blame was in the air this week as Ms. Merkel, along with the French president, François Hollande, and other euro zone leaders confronted the likelihood that Greece will need more help than it has already received to avoid a chaotic exit ...

New York Times

Hollande Says Greece Must Stay in Euro Zone
Wall Street Journal
PARIS—French President François Hollande said Greece "must remain part of the euro zone" as the economically troubled country struggles to get its finances back in order, but said Greece must demonstrate that its recovery program is "credible".

Gilt Yields Drop Most in 12 Weeks on Stalled Growth, Euro Crisis
Businessweek
“The euro-zone and sovereign-debt issues will continue,” said Elisabeth Afseth, a fixed-income analyst at Investec Bank Plc in London. “Weak PMI data from the peripheral European countries exacerbates their problems. It pushes investors into the safe ...

CANADA FX DEBT-C$ firms on euro zone hopes, Fed in focus
Reuters
C$ at C$0.9916 vs $US, or $1.0085 * Bond prices softer across curve * Fed meeting, Canadian GDP eyed next week By Solarina Ho TORONTO, Aug 24 (Reuters) - The Canadian dollar strengthened against the U.S. dollar on Friday, modestly reversing a ...

France's Hollande says Greece must remain in euro
Huffington Post
PARIS — French President Francois Hollande praised the Greek people on Saturday for making painful budget cuts, while urging them to do more to show their commitment to reforms to keep their country in the euro zone. "For me, the question should no ...

British Pound at Risk as Bernanke Disappoints, Euro Crisis Escalates
DailyFX
A bare-bones domestic economic calendar leaves the British Pound at the mercy of broader market themes, putting the spotlight on the evolving outlook for global economic growth and the festering Eurozone debt crisis. Sterling remains anchored to risk ...

Germans still positive on Ireland despite euro zone crisis
Irish Times
It appears a substantial majority of Germans have retained a positive view of Ireland despite the fact that they believe they are being asked to do too much for the euro zone. The other side of the equation is that a clear majority of Irish people have ...

America's Student Debt Crisis | Disinformation
By Breshvic
Student debt activists and education advocates Kyle McCarthy and Natalia Abrams are tired of the 'silence and complacency' that our elected (and duly bribed) officials exhibit in the face of overwhelming evidence of usury and millions of ...
Disinformation

Financial crisis destroys community | WCMessenger.com
By admin
Financial crisis destroys community. By Maritha Gan | Published Saturday, August 25, 2012. What is up with the insurance companies raising rates? Both my homeowner's insurance and my car insurance from two separate companies went up ...
WCMessenger.com

Deteriorating euro crisis may slow China's economic growth | Firstpost
By hidden
A further deterioration in the eurozone debt crisis could slow China's economic growth, a team of economists said in a report. ... Deteriorating euro crisis may slow China's economic growth. 1 min ago · Follow @firstpostin · #China #Economy ...
Firstpost

George Soros' Speech On The Euro Crisis At Italy's Festival Of ...
By Sam Ro
George Soros speech on euro crisis at festival of economics in Trento Italy.
Business Insider

Saturday, August 25, 2012

German finance ministry examines cost of Greek exit

Debt crisis: German finance ministry examines cost of Greek exit - Telegraph: "The German government is reportedly calculating the economic cost of a Greek exit from the eurozone, as Chancellor Angela Merkel prepares to meet Greece's prime minister in Berlin for talks on Friday." 

German Leader Says Greece Must Remain in Euro Zone
New York Times
The message was a clear signal to those Germans — including some members of her own government — who have argued that the easiest way to resolve Europe's sovereign debt crisis is for Greece to leave the euro zone. Volker Kauder, who leads Ms. Merkel ...

Analysts fear euro-zone capital flight might snowball
Washington Post
'Economic suicides' alarm Greece, Italy: Surveys by governments and nonprofits are showing an increase in mental health problems related to the financial crisis in Europe. Gallery. A for sale sign stands outside of a home in Princeton, Illinois ...

Euro Zone Worries
Inside Futures
Some of the selling is linked to the growing feeling that the European Union is not making much progress in their efforts to alleviate the financial crisis in the euro zone. Greece was told by the European Union that they must adhere to their ...

Debt crisis: Merkel says Greece will stay in the eurozone but traders fret over more delays - Telegraph: "ANGELA Merkel pledged to keep Greece in the eurozone - but her comments failed to convince traders who bet on yet more dangerous procrastination in Berlin and Brussels." 

Citi pulls funds from '$5bn man' John Paulson - Telegraph: "He is credited with earning the fastest $5bn (£3bn) ever made, but John Paulson, the American financier, now appears to be losing money from his famous hedge fund even faster."

Japanese Stocks Decline on US Jobs, Euro Crisis Concern
Businessweek
Japanese shares declined, with the Nikkei 225 Stock Average falling the most since July 25, after U.S. unemployment claims rose more than expected and concern intensified that European leaders are making little progress on the debt crisis. Nissan Motor ...

UK economy: double-dip recession not as deep as feared - Telegraph: "Britain's double-dip recession is not as deep as feared, after official GDP data showed on Friday that a fall in construction and industrial output in the second quarter was not as severe as first thought."

Wall Street dips, focus on euro zone
Reuters
NEW YORK (Reuters) - Stocks slipped on Friday after Chancellor Angela Merkel said Germany, as well as France, want Greece to stay in the euro zone but that Athens must meet its commitments. The S&P 500 dipped below 1,400 for the first time in two ...

U.S. Stocks Fall, Bonds Rise on Concern Over Europe Debt Crisis
San Francisco Chronicle
Aug. 23 (Bloomberg) -- U.S. stocks dropped amid concern European leaders weren't making sufficient progress in addressing the euro-area debt crisis. Gold rallied, the dollar fell to a two-month low and Treasury yields touched the lowest in more than a ...

Japan Stock Futures Drop Amid Europe Debt-Crisis Concern
Businessweek
Japanese and Australia stock futures fell amid concern that European leaders aren't making progress in solving the region's debt crisis, curbing the earnings outlook for exporters. Japan Tobacco Inc. (2914), Asia's largest listed cigarette maker by ...

Even The Eurozone Debt Crisis Gets A Vacation; But Not For Long (EWG, VGK ...
ETF Daily News (blog)
Martin Hutchinson: The Eurozone debt crisis has taken a late summer vacation. Since it would be very inconvenient for a disaster to erupt while everyone is on holiday, it doesn't. That's not to say this rule is infallible. One year, all the decision ...

ETF Daily News (blog)

Senseless Panic -- How The Financial Crisis Could Have Been Contained
Forbes
Senseless Panic -- How The Financial Crisis Could Have Been Contained. 0 comments, 0 called-out. + Comment now. + Comment now. The financial crash has generated a number of excellent books — Too Big to Fail, Chasing Alpha, Griftopia, All the Devils ...

Even the Eurozone Debt Crisis Gets a Vacation …But Not For Long ...
By Martin Hutchinson
The markets have taken a late summer break from the Eurozone debt crisis. ... Tags: Euro Bailout Plan, euro crisis, European bailout, European bond market, European Debt Crisis, eurozone bailout, eurozone crisis, eurozone debt crisis ...
Money Morning

PREVIEW-Data to reveal size of German scars from euro crisis - XE
A slew of data next week will show how badly Germany has been scarred by the euro zone crisis as its companies fear for key European export markets and the only vital support comes from consumers. ... Three years into the debt crisis, growth in Europe's largest economy slowed in the second quarter of 2012 to 0.3 percent and a string of increasingly gloomy data has even raised the possibility of a second-half contraction. The Ifo business climate index, Germany's most influential ...
XE Forex News

Euro Slips From Recent Highs On Profit Taking, EU Debt Crisis ...
By NYFP
08/24/12 The euro retreated from recent highs against the dollar Friday morning on sluggish progress in fixing Europe's debt crisis and investors taking profits. Subscribe by RSS · Email/Share Page · Tweet. Enter your E-mail address to ...
DailyMarkets.com

Euro zone headed for recession, China, U.S. struggle | Reuters
"Another reminder that a chronic lack of economic growth in the euro zone will continue to impede efforts to bring the debt crisis to an end," said Jonathan ...
www.reuters.com/.../us-economy-global-idUSBRE87M0OI20...

Weak euro zone casts long shadows - Yahoo! News
Business surveys this week are likely to show the euro zone economy ... drop in global economic sentiment as fear over the fallout of the euro crisis persists.
news.yahoo.com/weak-euro-zone-casts-long-shadows-190533...

Euro Zone: Euro Crisis Revving Up Again – Fasten Your Seatbelts ...
The markets have been starved of euro zone news for several weeks, but as politicians and traders return to their desks over the next couple of weeks, the crisis ...
www.cnbc.com/.../Euro_Crisis_Revving_Up_Again_Fasten_Y...

Friday, August 24, 2012

Eurozone headed for second recession in three years

Euro zone headed for recession, China, US struggle
Reuters
"Another reminder that a chronic lack of economic growth in the euro zone will continue to impede efforts to bring the debt crisis to an end," said Jonathan Loynes, chief European economist at Capital Economics. General Motors' (GM.N) German unit, Opel ...

Debt crisis: eurozone headed for recession as economic rot spreads - Telegraph: "The eurozone looks destined for its second recession in three years, as business surveys showed the economic rot is even spreading to Germany, the region's largest and strongest economy."

Exclusive: Spain in talks with euro zone over sovereign aid
Reuters
Spain is the latest hot spot in the 2-1/2-year euro zone debt crisis after its ailing banking sector, which sought a 100-billion-euro European lifeline in June, and its highly indebted regions unnerved international investors earlier this year. Last ...

Greece debt crisis: 'last chance' to meet bail-out terms says Jean Claude Juncker - Telegraph: "Greece has “one last chance” to meet its bail-out conditions, according to Jean Claude Juncker in comments that crushed hopes for an imminent change of strategy for Athens and the eurozone."

China concerns mount as 'awful' data see manufacturing fall to nine-month low - Telegraph: "China's factory activity in August contracted at its fastest pace in nine months, in a sign that a persistent slowdown in economic growth extended deeper into the third quarter."

Euro zone worries limit gains for European stocks
Reuters
LONDON, Aug 23 (Reuters) - European shares rose on Thursday, helped by gains at Dutch beer company Heineken and expectations of new stimulus measures from central banks, although persistent worries over the euro zone debt crisis limited stocks' rise.

Greek PM Sees 'Nightmare' Scenario if Greece Quits Euro Zone
Wall Street Journal
PARIS--A Greek exit from the euro zone would be devastating for the country, could harm Europe and lead to social problems, Greek Prime Minister Antonis Samaras is quoted as saying in Thursday's edition of Le Monde. Mr. Samaras told the French ...

Fed joins stimulus party as global trade slumps - Telegraph: "All three major blocs of the world economy have shifted gears dramatically over the last month, preparing a fresh blast of stimulus to combat the sharpest contraction in global trade since the 2008-09 crisis." 

The euro-zone wrecking ball
MarketWatch
No politician within the 17-nation euro zone wishes to be judged by history as the person who will be remembered as "The Euro-Zone Wrecking Ball." This is as true for those who hail from the periphery, the soft core and the relatively wealthy nations.

Swiss euro zone exports rise, shielded by franc cap
Reuters
Exports to euro zone up 5.1 pct in July despite crisis. * Overall exports rise 0.8 pct. * Monthly trade surplus is second highest on record. * Asia trade stagnates; exports to China, Japan fall (Adds details, background). By Caroline Copley. ZURICH ...

Diageo: Bracing for worsening euro crisis
MarketWatch
We are ready for whatever may occur in terms of the euro zone, but we are not anticipating one or another specific scenario," said Chief Financial Officer Deirdre Mahlan. "We are working really carefully to manage our debt levels and so we have been ...

REFILE-UPDATE 1-UK's Co-op profits slump amid euro zone uncertainty
Reuters
The UK economy has been shrinking since late 2011, bruised by the euro zone's debt crisis and austerity measures at home to pay down public debt that have sapped domestic demand. Marks said the impact had been most severe in the group's banking ...

Wounded in the financial crisis, Baltic states are regaining strength
NASDAQ
loading. The "Baltic Tiger" label still applies to the three nations that make up the Baltic states. Despite suffering in the global financial crisis, Estonia, Latvia and Lithuania are growing again. [caption id="attachment_71641" align="alignright ...

Politician: gays biggest threat after euro crisis - The Local
A German politician is facing a barrage of criticism after denouncing gay couples as the biggest threat to the country's prosperity after the euro crisis.
The Local - Germany's news in English

August 23: China's PMI, Euro-zone Reconfirms Global Slowdown ...
By Zacks Equity Research
China's PMI, Euro-zone Reconfirms Global Slowdown. ... The negative drag from global economic slowdown, as highlighted by soft manufacturing readings from China and the Euro-zone today, further confirms that course of action. But the ...
Zacks Investment Research - All...

UPDATE 1-Swiss euro zone exports rise, shielded by franc cap - XE
Swiss exports ticked up in July, with sales of goods to the euro zone growing strongly even as Switzerland's top trading partner slips towards recession, thanks in part to the cap the central bank imposed on the soaring franc a year ago.
XE Forex News

No vacation from euro debt crisis in Greece | Marketplace.org
European Debt Crisis. 1. No vacation from euro debt crisis in Greece ... they're going on vacation in order to avoid talking or thinking about the financial crisis.
www.marketplace.org/.../no-vacation-euro-debt-crisis-greece?...

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