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

Monday, October 15, 2012

World stuck in a vicious cycle; IMF mea culpa

The world is still stuck in a vicious cycle
Financial Times
If the global economy was in trouble before the annual World Bank and IMF meetings in Tokyo last week, it is hard to believe that it is now smooth sailing. Indeed, apart from the modest stimulus provided to the Japanese economy by all the official ...

Euroland's debt strategy is an economic and moral disgrace - Telegraph: "The International Monetary Fund has demolished the intellectual foundations of Europe's debt crisis strategy. . . Steen Jakobsen from Saxo Bank says the IMF's mea culpa is the "biggest financial story of the year". Indeed it is. The authorities have repeated the blunders of the Great Depression, but with fewer excuses. The IMF has now called for a change of course. The Greco-Latins should be given more time to cut their deficits. The AAA creditor bloc should stop cutting altogether until the eurozone is off the reefs. "Reducing public debt is incredibly difficult without growth," said the IMF's Christine Lagarde. "Instead of frontloading heavily, it is sometimes better to have a bit more time.""

Greece poised to leave euro, Swedish finance minister says - Telegraph: "Greece could leave the eurozone within the next six months, the Swedish finance minister Anders Borg has warned."

Euro zone crisis weighs on Mideast investment: IMF
TOKYO (Reuters) - Uncertainty over the euro zone debt crisis is now showing signs of restraining business and household spending in the Middle East, a top IMF official said on Sunday after weekend meetings of the International Monetary Fund and World ...

Bond traders: exhausted new stars of financial markets
Fox Business
LONDON – Three years of crisis in the euro zone have thrust the once-sleepy government debtmarket into the public spotlight and transformed the way bonds are viewed, valued and traded. Hugedebts run up by governments since the euro's creation in ...

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Global Economic Intersection (blog)
A week in which the European Union wins a Nobel Peace Prize and also is chided by the IMF for not doing more to implement a Euro wide banking regime to contain continuing financial threats, provides the perfect backdrop against which to revisit the EMU ...
Global Economic Intersection (blog)

Treasuries up on muted inflation; Spain eyed
Business Recorder (blog)
Benchmark US Treasury yields tracked their fourth straight fall, boosted by safe-haven bids as uncertainty about global growth and the ongoing euro zone debt crisis continued. The Federal Reserve's latest bond purchase also added to gains in ... "Spain ...

Spillover risk from crisis downplayed
Bangkok Post
While Europe is likely to still slip into recession, various measures taken by eurozone leaders to address the debt crisis has reduced spillover risks, says Jens Sondergaard, an economist based in London. Mr Sondergaard, a former executive director of ...

Why Spain Hesitates to Ask for Help
New York Times
In the euro crisis, this means pushing ahead with painful but necessary reforms while hanging onto power. In Spain, where I spent part of ... These slippages might seem to matter less, now that the I.M.F. and even some euro zone policy makers are ...

IMF: Euro Zone Could Spell Global Disaster
Wall St. Cheat Sheet
The International Monetary Fund has said the euro region's debt crisis is the biggest threat to global financial stability and has warned European policymakers they need to show more urgency in strengthening fiscal ties and economic stability. “Despite ...

Wall St. Cheat Sheet

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