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

Saturday, September 1, 2012

Racing toward the fiscal cliff

Racing toward the fiscal cliff
The “fiscal cliff” is the result of the stop-gap budget deal Congress and President Obama reached last year in order to avoid another crisis and allow the government to pay its bills. It mandates serious belt-tightening in the form of government ...

Ireland 'may have to cut public sector wages' - Telegraph: "The Irish health minister warned that the Irish coalition government may be forced to cut public sector wages if spending targets under its EU bailout are to be met." 

Employment 'catastrophe’ if euro bloc splits - Telegraph: "Eurozone unemployment reached a record high as a United Nations agency warned of a “catastrophic” rise in the jobless count if the sovereign debt crisis worsens." 

Japan plans to cut state spending, could run out of money in a month - Telegraph: "Japan's government is planning to suspend some state spending as it could run out of cash by October, with a deficit financing bill blocked by opposition parties trying to force Prime Minister Yoshihiko Noda into an early election."

Draghi plan under threat amid EU split - Telegraph: "Pressure is mounting on the European Central Bank to water down emergency measures to prop up Spain and Italy, after reports that the chief of Germany’s Bundesbank threatened to quit in protest at the plan."

QE 3? Fiscal Cliff Could Paralyze Fed Action
The Fiscal Times
What better backdrop than the Grand Tetons to remind Federal Reserve Board Chairman Ben Bernanke of the looming fiscal cliff as he addresses his colleagues to their annual retreat tomorrow in Jackson Hole, Wyoming. All will be waiting for his next move ...

The Fiscal Times

Eurozone unemployment hits record 18m - Telegraph: "Jobless numbers across the 17-nation eurozone hit a record 18m in July, the EU statistics agency said this morning." 

Bankia to receive immediate aid after huge loss - Telegraph: "Spain's national bank rescue fund will inject emergency liquidity into troubled lender Bankia immediately after the bank reported losses of over €4bn in the first half of 2012."

'Fiscal Cliff' … an Illusion or Reality?
Uncommon Wisdom Daily
The fiscal cliff is the expiration of the Bush tax cuts at year-end, just as $110 billion in automatic defense and domestic spending cuts — part of the 2011 debt ceiling increase package — kick in with the New Year. About that time, the federal ...

Uncommon Wisdom Daily

Falling Off the Fiscal Cliff
But what concerns economists more than the debt is the impending fiscal cliff, shorthand for the crisis that will face the U.S. government at the end of 2012. At that time, taxes will soar and government spending will plunge. The Bush tax cuts will go ...


Don't Be Spooked by the Fiscal Cliff
If, like most investors, you're concerned about the Fiscal Cliff — and the threats, ranging from higher taxes to plunging markets, are real, if not certain — please read on. These three simple steps can protect you, but only IF you take them by yearend.

Recession in U.S. Likely If Congress Doesn't Act, Feldstein Says
There is no sign of an agreement to avoid a so-called fiscal cliff. Congressional leaders have said they probably won't consider until after the election the Bush-era tax cuts set to expire Dec. 31 or the automatic spending cuts that would begin taking ...

Japan's fiscal cliff: Government could run out of money within a month
Investment Week
While all eyes are on a potential 'fiscal cliff' in the US, Japan's parliament fear its economy is being driven towards a fiscal cliff of its own as opposition parties block a deficit-financing bill. It is thought the move would force Prime Minister ...

Investment Week

Henningsen: Zombie Congress
Vermont Public Radio
(Host) Congressional leaders are already looking past November's election to the challenge of what's been called "Taxmaggedon" after January 1st. But it will be a lame duck Congress and if there's any hope of avoiding going over the "fiscal cliff ...

Vermont Public Radio

US Business Activity Expands at Slower Pace as Companies Face 'Fiscal Cliff'
Companies may lack the confidence to invest in new equipment and hire as they face a global economic slowdown and the so-called fiscal cliff threat of more than $600 billion in government spending cuts and higher taxes. Manufacturing, which helped spur ...

Judgment Days Arrive for Euro Crisis
Wall Street Journal
LONDON—After an uncharacteristically calm August, European policy makers andfinancial markets are facing a tumultuous autumn marked by major showdowns in keyeuro-zone battlegrounds. For years, policy makers have ... The euro zone has seen many ...

Wall Street Journal

Euro Zone's Slide Gathers Pace
Wall Street Journal
Evidence of deeper economic problems is likely to put more pressure on the ECB to try to boost the economy by lowering its key interest rate or setting out plans to buy government bonds of weaker member states. The bank's Governing Council next meets...

Wall Street Journal

How to Prevent Euro Zone Contagion
Wall Street Journal (blog)
But central bankers and academics gathering are discussing the crisis he faces. Preventing thefinancial turmoil in one country from spreading to others — a process called contagion — requires different measures in the euro zone than in other regions ...

Sweeping ECB Powers May Be Next Europe Battleground
“Banking union could thus make the euro zone more attractive as a financial center.” Both the U.S. Federal Reserve and the Bank of England were given increased powers to supervise their national banks during the credit crisis. The ECB has already been ...


Forex options less bearish on euro, ECB action eyed
NEW YORK Aug 30 (Reuters) - Expectations that the European Central Bank will take action to reel in the region's more than two-year-old debt crisis have been bullish for the euro versus the U.S. dollar, but some in the options market are positioning ...

Euro hits 8-week high vs dollar, Bunds extend losses
... The euro hit an eight-week high against the dollar on Friday and Bund futures extended losses after comments from ECB executive board member Benoit Coeure added to expectations the central bank will buy peripheral debt to tackle the euro zone crisis.

US Stocks Slide as Euro Zone Concerns Escalate
Wall Street Journal
NEW YORK--Stocks slumped after euro-zone economic sentiment fell to a more than two-year low and a Spanish official said the country will delay deciding whether to seek a bailout, bringing the region's debt crisis back in focus. The Dow Jones ...

ECB's Nowotny Sees Outlook Worsening
Fox Business
Throughout much of the euro zone's three-year debt crisis it has grappled with divergences in its members' growth. While its "northern core" members, especially Germany, have generally been able to grow and maintain strong labor markets, its southern ...

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