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

Saturday, September 8, 2012

Experts warn of 'perfect storm' for global economy

Experts warn of 'perfect storm' for global economy
Businessweek
"History suggests that whenever (there is) a crisis with too much private debt first and public debt second you have a painful process of deleveraging," said the famously apocalyptic New York University professor, a glowering fixture at such ...

Debt crisis: as it happened - September 7, 2012
Telegraph.co.uk
Poor demand from abroad and uncertainties surrounding the outlook for the EMUdebt crisis are still well alive and we suspect sideways movements in activity remain the best case scenario going forward. Howard Archer of IHS Global Insight said July's ...

Telegraph.co.uk

German Exports Unexpectedly Increase Amid Debt Crisis
Businessweek
While the debt crisis has dented demand for German goods in Europe, companies have compensated with sales to faster-growing emerging markets. That has helped boost employment and domestic demand, insulating the economy. Still, economic growth ...

Debt Crisis: Patrick Honohan says EU deal on bank debt coming but delays
Irish Independent
CENTRAL Bank governor Patrick Honohan has given the clearest indication yet that an EU deal to ease the cost of the Irish bank rescue will be delayed. The government has been locked in talks with EU leaders since June aimed at securing a deal by next ...

Irish Independent

Commodity prices rise on new plan to help Europe's debt crisis; traders await ...
Washington Post
By Associated Press, AP. A new bond-buying plan to help ease Europe's debt crisis is benefiting commodity prices. The European Central Bank said Thursday that it will buy unlimited amounts of government bonds from countries struggling with massive debt.

Harper Says Europe Moving in the Right Direction on Debt Crisis
Bloomberg
European policymakers are moving in the right direction for solving the region's debt crisis, including today's announcement of a bond-buying plan by the European Central Bank, Canadian Prime Minister Stephen Harper said. Europe is the most immediate ...

ADR Report: Shares End Higher After ECB Unveils Plan for Debt Crisis
Wall Street Journal
By Mia Lamar. International companies trading in New York closed higher Thursday after the European Central Bank unveiled its most aggressive plan yet to deal with the euro zone's massive debt crisis. The Bank of New York index of ADRs rose 2.5% to ...

Oil price falls back around $95 after rising on ECB debt-crisis measures, good ...
Newser
The initial run-up in prices was driven by word that the European Central Bank will buy lots of government bonds, which should help lower borrowing costs for European countries struggling with debt expenses. Prices were also boosted by reports showing ...

Debt crisis pushing euro zone towards recession: OECD
Financial Express
Paris: Europe's debt crisis is pushing the 17-country euro zone toward recession and dragging down the global economy, the Organisation for Economic Cooperation and Development said on Thursday. Even growth in traditional economic powerhouse ...

European Bond-Buying Plan May Not End Debt Crisis - eWallstreeter
Robert Siegel speaks with economist Ken Rogoff of Harvard University about the European Central Bank's announcement that it will buy some government bonds from eurozone countries to help resolve the ongoing debt crisis. Continue ...
eWallstreeter

European Central Bank trots out another fix for the euro crisis
Washington Post
Furthermore, enlisting the ECB as a de facto lender of last resort within the euro zone provides that currency union with a key fail-safe that it had heretofore lacked. The question, though, is whether this is any more of a long-term solution than any ...

EURO GOVT-ECB bond plan fuels Spanish, Italian debt rally
Reuters
LONDON, Sept 7 (Reuters) - Spanish 10-year bond yields fell below 6 percent for the first time since May on Friday as an ECB plan to buy government debt was seen as a first step towards restoring faith in the euro zone's ability to tackle its debt crisis.

Dump-Greece Economist Sinn Rattles Merkel Laboring to Save Euro
San Francisco Chronicle
He then lays out once more his argument that Germany is paying more than it thinks for Greece's fiscal recklessness and that the struggling southern European nation should long ago have left the euro zone, Bloomberg Markets magazine reports in its ...

Euro Hits Near 5-Month High Against Swiss Franc
Wall Street Journal
A trader said the single currency's spike reflects a more positive sentiment towards theeuro-zone debt crisis after the ECB promised open-ended purchases of short-maturity government bonds to keep borrowing costs down for countries such as Spain.

Dutch prime minister angling for home owner vote
Chicago Tribune
Concerns about the high debt ratio, weak economy and exposure to the euro zone crisis were cited by Moody's ratings agency as the main reasons for a possible downgrade of the Netherlands' triple-A credit rating. Rutte's pro-business Liberal Party is ...

REFILE-French imports fall in July, manufacturing weak
Reuters
But the automaker is also symptomatic of an industrial sector that has shed some 750,000 jobs in the past decade and whose steady decline the euro zone crisis has exacerbated. PSA said in July was to shed 8,000 domestic jobs, and unions are warning of ...

The Absurd Quest for Euro Crisis Images
Spiegel Online
Most crises don't hold the public's attention for more than a few weeks or months, but it has been different with the ongoing euro-zone debt debacle. Stratenschulte has had enough of it. "It is difficult to keep finding a new approach," he says. "I'm ...

Spiegel Online

EM ASIA FX-Super Mario's euro rescue plan supports Asia FX
Reuters
SINGAPORE, Sept 7 (Reuters) - Most emerging Asian currencies rose on Friday and were headed for weekly gains after the European Central Bank outlined a long-awaited bond-buying programme to tackle the euro zone's debt crisis, boosting risk sentiment.

The Other Euro Crisis | The Awl
By Alex Balk
"The Greeks aren't the only ones sick of the euro crisis. Photographers are reaching the end of their tether too, struggling to shoot images of euro coins in various states of distress to illustrate the story. Though some of the photos are absurd, ...
The Awl

The European Central Bank announces a plan to ease the euro crisis
By Paul Ames
More from GlobalPost: Euro crisis dispute takes center stage in Germany. Although it buys crucial breathing space for struggling euro zone economies, the plan offers no overnight solution to the debt crisis. The market optimism it's generated ...
The Latest posts on MinnPost

The Coming Crisis: Stage set for euro rescue but will Spain jump ...
By Lynsey
However, his escape route from the euro zone's sovereign debt crisis, which has raged since early 2010, hinges on Madrid requesting assistance, which Prime Minister Mariano Rajoy still seems to be wriggling to avoid or delay. Read More ...
The Coming Crisis

Lingering euro-zone crisis expected to hinder China's economic ...
Lingering euro-zone crisis expected to hinder China's economic recovery. Standard Chartered sees U-shaped rebound on the mainland as crisis in the euro ...

German exports and industrial production both stronger than expected in July
Washington Post
BERLIN — German exports inched up unexpectedly in July and industrial production also rose more than expected, data showed Friday, despite signs Europe's financial crisis is beginning to take its toll on its largest economy. Exports rose 0.5 percent ...

Biggest Financial Crisis Bailout Fails
Huffington Post
The Obama administration argues that the TARP should be credited with blunting the force of thefinancial crisis and saving "more than one million American jobs." Critics like former TARP inspector general Neil Barofsky say the program may have stemmed ...

Spanish, German leaders search for common ground
Huffington Post
MADRID — For months, Spanish Prime Minister Mariano Rajoy and German Chancellor Angela Merkel have been at odds over how eurozone countries could defeat the 17-nation bloc's relentless financial crisis. Rajoy balked at the indignity of having to ask ...

How life has changed since the financial crisis
Globe and Mail
It has been four years since the financial crisis began. In that time, the lives of thousands of Canadians have been touched by lost jobs, battered investments and increasing household debts. The Globe and Mail asked readers how their lives have ...

The rise of the chief data officer: The silver lining of the financial crisis
FX-MM (blog)
The rise of the chief data officer: The silver lining of the financial crisis. Publication date: 7 September 2012. Author: Stephen Engdahl, senior vice president of product strategy, GoldenSource. Tagged with: Basel III, CFTC, FATCA, GoldenSource ...

FX-MM (blog)

Taskforce to tackle financial crisis - councillor puts idea on the table
Stornoway Gazette
A new councillor at Comhairle nan Eilean Siar has ignited a plan to pull all sectors of the islands together to address the financial crisis facing the Western Isles. Loch a Tuath councillor Donald Crichton, who was elected in May, suggested the ...

China spends £100bn on infrastructure to boost growth
Telegraph.co.uk
... planning body, the National Development and Reform Commission, announced approvals for projects that analysts estimate total roughly a quarter of the total size of the massive stimulus package unleashed in response to the global financial crisis.

Telegraph.co.uk

Labor Pains: US Economy Adds 96000 Jobs in August
Fox Business
The economy has experienced three years of growth since the 2007-09 recession, but the expansion has been grudging and the jobless rate has held above 8 percent for more than three years -- the longest stretch since the Great Depression. Fed Chairman ...

The economy vs. the president
Washington Post (blog)
President Obama's speech Thursday night took place in a world where the jobs crisis didn't exist. It's not that he didn't talk about jobs. But there was no particular urgency in his diagnosis, much less in his prescription. The mentions of the unusual ...

Russia's Putin warns on global economy, looks east
Reuters
VLADIVOSTOK, Russia, Sept 7 (Reuters) - President Vladimir Putin issued a warning over the fragile state of the global economy on Friday as he set out plans for Russia to build economicties with Asia at a time when Europe is battling a debt crisis ...

Canadian economy adds 34300 jobs, but unemployment rate remains at 7.3%
Montreal Gazette
OTTAWA — Canada's economy hammered out a surprisingly healthy 34,300 new jobs last month, topping expectations of only modest gains and completely reversing the previous month's setback. Analysts had expected the economy to add only about ...

Economy stuck in low gear; time for Fed to act
MarketWatch
By MarketWatch. WASHINGTON (MarketWatch) — The U.S. economy is stuck in low gear, producing few new jobs and stagnant paychecks. According to the Bureau of Labor Statistics, 96,000 net new jobs were added in August. Over the past year, the...

MarketWatch

Unemployment dips, but challenges rise for President Obama as economy still ...
Boston Globe
WASHINGTON -- The US Labor Department said the economy added 96,000 jobs in August, but many thousands more quit looking for work in an economy still long from full recovery. Although the unemployment rate dropped two-tenths of a point to 8.1 ...

U.K. Industrial Output Jumps Most in 25 Years on Jubilee Rebound
Bloomberg
In Germany, industrial output unexpectedly increased 1.3 percent, separate data showed. The U.K. surge indicates some strength in the economy after it shrank 0.5 percent in the second quarter, partly due to the jubilee holiday. Still, while gauges of ...

Democrats return to the economy after Jerusalem detour
Jewish Telegraphic Agency
But by its third and final night, the Democratic National Convention had gotten back on message: jobs, jobs, staying on course with getting the economy back on track, and -- oh, yes -- jobs. It was a course correction after two days in which convention ...

German Industrial Output Unexpectedly Increased in July
Bloomberg
Today's report is the third to suggest the economy made a good start to the third quarter, with factory orders and exports also rising in July. Still, growth slowed in the second quarter and business confidence has dropped for four straight months as ...

China to Build New Roads, Subways to Boost Economy
Businessweek
The government may boost infrastructure-spending growth to an annual pace of more than 20 percent in the coming months from 15 percent to stimulate the economy, HSBC Holdings Plc economists Qu Hongbin and Sun Junwei said in a note yesterday.

The Boom Economy - By Bates Gill | Foreign Policy
By BATES GILL
Bookmark and Share More... The data are clear about these trends. For the first time in 14 years, global military spending did not increase last year, part of an overall slowdown in global military spending that began in 2008. But, on the other ...
Foreign Policy

August Jobs Report: U.S. Economy Adds 96,000 Jobs ...
By The Huffington Post News Editors
WASHINGTON -- U.S. employers added 96000 jobs last month, a weak figure that could slow the momentum President Barack Obama hoped to gain from his speech Thursday night to the Democratic National Convention. The unemployment ...
The Huffington Post | Full News Feed

Cleaning Up the Economy
By Paul Krugman, New York Times
Bill Clinton's speech at the Democratic National Convention was a remarkable combination of pretty serious wonkishness — has there ever been a convention speech with that much policy detail? — and memorable zingers. Perhaps the best ...
RealClearPolitics - Homepage

Wage hike will stimulate economy: expert - The Nation
Wage hike will stimulate economy: expert. The increase in the daily minimum wage to Bt300 in another 70 provinces, which was approved on Tuesday and will go into effect on January 1 next year,...
NationMultimedia.com - National

What's Next? China's Fast-Growing Economy Slows : NPR
China's economic boom has altered the global economy but its growth is slowing down. Steve Inskeep talks to Beijing-based economist Patrick Chovanec about ...
Ryan compares Obama's record on economy to Jimmy Carter's ...
Ryan said every president could run on his economic record except for Jimmy Carter and Barack Obama CHARLOTTE, N. C..

Europe's pillar, Germany, seen at risk of recession
Economic Times
Little wonder, then, that the German chancellor, Angela Merkel, has come around to the idea of the financial intervention that the European Central Bank announced Thursday afternoon in Frankfurt, Germany, just hours after the grim economic forecast was ...

Euro Plan Lowers Debt Costs, but Germany Grumbles
New York Times
The experience of the euro zone crisis so far is that, whenever pressure from the financialmarkets is reduced, politicians postpone difficult decisions. Paradoxically, that could mean that the E.C.B.'s intervention will make agreement on crucial ...

EURO GOVT-Spanish debt leads ECB-inspired peripheral rally
Reuters
LONDON, Sept 7 (Reuters) - Spanish 10-year bond yields fell below 6 percent for the first time since May on Friday as an ECB plan to buy government debt was seen as a first step towards restoring faith in the euro zone's ability to tackle its debt ...

German exports, imports and industrial production climb
Reuters
Recent data has painted a mixed picture of the German economy, which has proved fairly robust through much of the euro zone's three-year-old debt and financial crisis. Economic growth slowed to 0.3 percent in the second quarter and many economists ...

CANADA STOCKS-TSX may extend gains on ECB bond buying
Reuters
Sep 7 (Reuters) - Toronto's main stock index looked set to open higher on Friday, as global markets draw support from the European Central Bank's bond buying plan and the prospect of a lasting solution of the euro zone's debt crisis. TOP STORIES ...

Spain to discuss ECB aid next week -deputy PM
Reuters
MADRID (Reuters) - Spain said it would discuss conditions attached to the European Central Bank's new bond-buying program with euro zone finance ministers next week, but insisted it was still in no hurry to seek international aid. As Spain's 10-year ...

Asia Pacific Leaders to Voice Concern over Euro-Zone Crisis
NASDAQ
VLADIVOSTOK, Russia--Asia Pacific leaders will voice concern over the euro-zone crisis and vow to fight rising trade protectionism, according to a draft joint communique set to be issued this weekend. Leaders of the 21-member Asia Pacific Economic ...

ECB Moves to 'Save' Euro-but Is It Too Late for Greece?
CNBC.com
Meanwhile, Greece itself continues to struggle with unemployment and shrinkingeconomic growth (link) while scrabbling to find a further 11.5 billion euros of spending cuts and reforms to satisfy creditors and returning debt inspectors. TheECB's ...

CNBC.com

US Stocks Push to Pre-Crisis Highs on ECB, Signs of US Strength
Wall Street Journal
European Central Bank President Mario Draghi's announced the central bank's most aggressive European plan to date to deal with the euro-zone debt crisis Thursday. He promised a ... A trio of positive U.S. economic reports bolstered the rally as well.

ECB Coene: Largest Responsibility to Manage Crisis Remains with Member States
Wall Street Journal
LUXEMBOURG--European Central Bank governing council member Luc Coene Thursday called on national governments to take on their responsibilities and implement the structural reforms needed to deal with Europe's nearly three-year-old debt crisis, moments ...

Relief in Italy at ECB plan, Monti says reforms must continue
Reuters
CERNOBBIO/BARI, Italy (Reuters) - Italian business leaders expressed palpable relief on Friday at the European Central Bank's bold plan to buy bonds of debt-laden euro zone states like Italy but they warned the region's crisis was not over and pressure ...

3 ETFs To Prepare For The Fiscal Cliff
Seeking Alpha
Fiscal cliff refers to expiration of Bush-era tax cuts, combined with drastic spending cuts on the defense and domestic budgets. Last week, we had a very interesting discussion on the topic, where most comments indicated that the market has not yet ...

GOP demands White House meet fiscal cliff report deadline
The Hill (blog)
Congressional Republicans are demanding that President Obama meet the Friday deadline for laying out how his administration will carry out the spending cuts from sequestration that are part of the "fiscal cliff." “Tomorrow (September 7) is the deadline ...

Durbin Urges Plan to Delay Fiscal Cliff 6 Months With Savings
Businessweek
2 Democrat said lawmakers should avert a fiscal crisis at year-end and allow Congress to “buy” a six-month delay in scheduled tax increases and spending cuts by finding other ways to reduce the deficit. Assistant Senate Majority Leader Dick Durbin, ...

Obama the Bin Laden Killer to Get Fiscal Cliff Gut Check in 2013
San Francisco Chronicle
The $607 billion in combined spending cuts and tax increases that hit the 2013 budget -- what lawmakers now call the “fiscal cliff” -- amounts to 4 percent of gross domestic product, a retraction that would send the economy back into recession ...

Let's Dive Off the Fiscal Cliff
DailyFinance
Good, because here are three words that many say should scare investors: the fiscal cliff. Hopefully you didn't choke on your coffee -- or tea, or wine, depending on when and where you read this. Is the fiscal cliff that scary, though? Or is the view ...

Market Euphoria Continues As We Get Ready To Jump Off The Fiscal Cliff
Seeking Alpha
That observation was made by Keynes in the 1920's at a time when his margin account had been wiped out trading currencies. He is generally thought of as a brilliant theorist but Keynes was also a trader of some significant repute. What Keynes ...

Fiscal Cliff An Opportunity to Get Something Done
Wall Street Journal (India)
Fiscal Cliff An Opportunity to Get Something Done. The Blackstone Group Co-Founder Pete Peterson talks to WSJ's John Bussey about the state of America's economy, the fiscal cliff, and what the next President needs to do to fix the economy. Peterson ...

About That Fiscal Cliff - Leon LaBrecque, Analyst, Says we may Sail off the ...
Equities.com
LaBrecque caps the storms off by stating that Storm Three will be The Storm of the Century: TheFiscal Cliff. "This is the scariest of the storms, the one that puts a gleam in the eye of the Weather Channel boys, is the monster storm forming at the end ...

Canada's Harper urges US to take fiscal situation in hand
Reuters
VANCOUVER, Sept 6 (Reuters) - Concerns about a so-called "fiscal cliff" in the United States are warranted but they should not overshadow the need for America to "get a grip" on its longer-term fiscal situation, Canadian Prime Minister Stephen Harper ...

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