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

Saturday, September 22, 2012

The Deposit Flight That Could Undermine the Euro


An accelerating flight of deposits from banks in four European countries is jeopardizing the renewal of economic growth and undermining a main tenet of the common currency: an integrated financial system.

The slow bank run that could still doom Europe
Washington Post (blog)
In early September, Mario Draghi and the European Central Bank announced a grand plan to come to the aid of euro-zone governments facing unworkably high borrowing costs — countries like Spain and Italy. It seemed like a reasonable enough plan, despite ...

Greek troika report delayed by US elections - Telegraph: "A decision on granting Greece the next round of its bail-out will be delayed until after the US election to avoid the risk of an economic earthquake jeopardising President Barack Obama’s chances of being returned to the White House, European officials have said."

Austerity in the dock as Europe's debt-stricken leaders meet
Reuters
ROME (Reuters) - The leaders of countries at the center of the euro zone debt crisis met in Rome on Friday after steep upward revisions to Italy's public debt targets raised growing doubts about the austerity policies being pursued. "Prime Minister ...

EU CRISIS ROAD MAP: Key Milestones Ahead
Wall Street Journal
The European Central Bank's plan to buy the debt of more fiscally frail euro-zone countries such as Spain has gone some way to calm investors but a key sticking point remains: the Spanish government has yet to ask for assistance, wary of the ...

Gold hits 2012 high on Spanish bailout fears - Telegraph: "Gold has hit a high for the year on speculation that Spain may be working on a request for financial help from other European countries."

In Crisis, EU Wields More Carrot, Less Stick
Wall Street Journal
BRUSSELS—The euro zone's response to the debt crisis is undergoing a quiet revolution: The bloc has tempered its policy of tough budget austerity that has failed to assure investors about the finances of its weakest members. Euro-zone officials have...

Wall Street Journal

IMF chief urges Europe to act to move beyond crisis
Reuters
WASHINGTON (Reuters) - European policymakers must move quickly to coordinate and implement decisions they have taken to move the euro zone beyond its current debt crisis, the head of the International Monetary Fund said. In an interview with an IMF ...

WORLD FOREX: Spanish Hopes Buoy The Euro
NASDAQ
The euro regained some of its buoyant tone in European trade Friday as reports suggested that Spain and the European Commission were paving the way for a new rescue package, in a move that could further damp down the euro-zone debt crisis.

FOREX-Euro and Aussie regain ground after sell-off
Reuters
SINGAPORE, Sept 21 (Reuters) - The euro clawed higher on Friday, but its gains were limited after a batch of surveys showed euro zone business activity remained weak despite the European Central Bank's bold efforts to tackle the debt crisis. The euro ...

Euro stung by weak data, gives USD a bit of reprieve
Reuters
The euro also lost ground against the Australian dollar, sliding to a one-week low of A$1.2405. "The single currency may likely face additional headwinds over the near-term as the debt crisis continues to drag on the real economy," said David Song ...

IMF chief Christine Lagarde says US needs to rein in its banks - Telegraph: "IMF managing director Christine Lagarde has said that Europe can only solve its debt crisis if countries such as the US bring their banks under control."

Debt crisis: as it happened - September 21, 2012 - Telegraph: "Italy and Greece's prime minister meet in Rome as the Greek premier struggles to secure an agreement from his coalition on a €11.5bn package of budget cuts."

Finns Veto ESM Boost
Wall Street Journal
Also, while the additional leverage options could prove useful, pressure in financial markets and from the region's international partners for euro-zone governments to deploy their own bazooka to stem the debt crisis has ebbed in recent weeks since the ...

China vows support on euro debt crisis
The Australian Financial Review
China has pledged continued help to help tackle the euro zone debt crisis, saying Europe was "on the right track" but needed to implement the measures agreed to fix its problems. Premier Wen Jiabao told EU and Chinese business leaders on Thursday that...

The Australian Financial Review

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