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

Monday, October 29, 2012

Germany rattled as taxpayer losses loom in Greece

Germany rattled as taxpayer losses loom in Greece - Telegraph: "The EU-IMF Troika of inspectors in Greece has called on European bodies and official creditors to write off a chunk of their loans, opening the way for first taxpayer losses since the sovereign debt crisis began. . . . Hans-Werner Sinn, head of Germany’s IFO Institute, said it is becoming cruel to keep Greece in EMU. "The austerity needed to restore wage and price competitiveness will break society first. We are sacrificing a generation of young people who cannot find work, and all in the name of the euro. It is irresponsible. A euro exit would offer hope at last," he said. Dr Sinn said Europe should craft a controlled return to the drachma with help to shore up the Greek banking system and to provide trade credits. "There is no need for catastrophe scenarios," he said."

Mario Draghi backs Wolfgang Schaeuble's 'super commissioner' plan - Telegraph: "The head of the European Central Bank has thrown his weight behind a German scheme to allow the EU to intervene in countries' budgets and propose changes before they are agreed in parliaments."

Munich Re CEO: Renewed Greek Debt Writedown Must Be Avoided -Report
Fox Business
A renewed writedown of debt owed by financially ailing Greece must be avoided or capital markets will lose all trust in governments' capability to resolve the persistent sovereign debt crisis in the euro zone, said Nikolaus von Bomhard, chief executive ...

ECB's Nowotny: Giving Greece More Time Makes Sense, But is Political Decision
NASDAQ
FRANKFURT--Greece has good chances to overcome its debt crisis provided it tackles its structural problems and receives support from its partners in the European Union, European Central Bank Governing Council Member Ewald Nowotny said Sunday.

Draghi Backs Creation of EU 'Currency Commissioner'
CNBC.com
Schaeuble said earlier this month that the EU needed a commissioner who wielded power over member states' budgets together with reform of the European Parliament's decision-making process, changes he said could help ease the debt crisis. ... support...

CNBC.com

US & Chinese Markets Advance Slightly; Euro Woes Intensify
Avauncer
Euro Woes. In Europe, a fall that started with a potential debt crisis in Greece region had extended across the seventeen country euro zone as manufacturing output in Germany, the European zone's largest economy and leading exporter, dropped ...

Avauncer

Left in Lithuania eyes vote win after austerity pain
Reuters
The government's failure at the ballot box comes despite widespread praise abroad for a more resolute course on cutbacks than that taken by Greece and other euro zone countries struggling with debt. But many voters say they have had enough. "Everything ...
ECB words may hasten Portugal bond market return
gulfnews.com
Since ECB President Mario Draghi pledged in late July to do whatever it takes to save the euro, including curbing borrowing costs, Portuguese bonds have outperformed all euro zone debt but Greece's. Yields, while still viewed as unsustainable, have ...

Germany says no to new Greek debt haircut
Livemint
He also argued that a new haircut would raise questions over whether other governments in the 17-nation euro zone could continue helping Greece. “You don't give a debtor who doesn't service your debt claims new money,” he said. “We would be prevented ...

Livemint

Despite gloom, global equity performance at 5-year high
Moneycontrol.com
Investors have been bombarded with reasons to be pessimistic this year. The euro zone crisis, the U.S. fiscal cliff, fears of a China slowdown: all seem designed to hamper stock market performance.

Moneycontrol.com

Many large Indian cos to focus more on cost reduction: E&Y
Zee News
New Delhi: Many large Indian companies are expected to focus more on cost reduction and risk management in the next 12 months, with European debt crisis putting pressure on their financials, an E&Y survey has said. Global consultancy frim Ernst & Young ...

Zee News

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