Markets Are Tumbling In Europe
FTSE 100
6,397 -19 – 0.30%
DAX
7,763 -109 – 1.38%
CAC 40
3,737 -38 -1.00%
FTSE MIB
15,829-1921.20%
IBEX 35
8,058 -102 -1.24%
Stoxx 600
293-2 - 0.66%
Euro Zone Crisis Is Back — On Multiple Fronts
Europe’s finance ministers meeting in Dublin on Friday are facing a renewed crisis on multiple fronts,with a backlash against austerity acting as a gloomy backdrop for negotiations over bailout extensions for Portugal and Ireland, while tackling Cyprus’s botched bailout and growing [...]
Greece’s unions are holding their third general strike in six weeks in the hope of persuading politicians not to back a major new austerity program that will commit the country to further hardship.
Flights will stop between 10:00 a.m. and 1:00 p.m. (0800-1100GMT) Tuesday, at the start of a 48-hour strike that will close schools, halt train and ferry services, and keep hospitals running on emergency staff only.
Two days of demonstrations [...]
 New Turn in the Euro Zone Financial Crisis
The eurozone financial crisis is set to deepen following this week’s release of debt projections for the Greek economy. Budget estimates show that instead of peaking at 167 percent of gross domestic product, as predicted last March when the so-called bailout package was put in place, the debt ratio will hit 189 percent this year, rising to 192 percent in 2014—well above the [...]
From Bloomberg:
Spain’s economy contracted for a fifth quarter, undermining efforts to plug the budget deficit that’s pushing the nation closer to a bailout, while austerity measures kept inflation at a 17-month high.
Gross domestic product declined 0.3 percent in the three months through September, compared with 0.4 percent the prior quarter, the National Statistics Institute said today. That compared with the Bank of Spain’s estimate on Oct. 23 of a 0.4 [...]
rt.com
October 10, 2012
Scores of commandos, sailors and paratroopers in their uniforms gathered in Athens on the day of the German Chancellor’s visit – but not to help with keeping the peace. Instead, they staged a march, chanting “Merkel, out of Greece!”
Marching in formation, they also chanted “Together, together, Nazis get out!”
The crowd in the street supported the reservists with rousing cheers. Many of the viewers joined the protesters in their disciplined [...]
MASSIVE demonstrations in Spain (Madrid, Barcelona etc) … happening now [live stream]
Watch live streaming video from spanishrevolutionsol at livestream.com
http://www.livestream.com/spanishrevolutionsol
Portugal, too, Lisbon:
http://online.wsj.com/article/BT-CO-20120929-700970.html
LISBON–Thousands of Portuguese took over the country’s largest square in Lisbon on Saturday in the second protest this month against the government’s austerity program.
The manifestation was organized by CGTP, the country’s biggest union confederation with over 500,000 members. Its leader, Armenio Carlos, said a general strike is being considered.
If one needs a shining example of why the days of Europe’s artificial currency are numbered, look no further than the EU’s poorest country which moments ago said “Ne Mersi” to the Eurozone and the European currency. From the WSJ: “Bulgaria, the European Union’s poorest member state and a rare fiscal bright spot for the bloc, has indefinitely frozen long-held plans to adopt the single currency, marking the latest fiscally [...]
Greece asks for more time for budget cuts: report
SAN FRANCISCO (MarketWatch) — Greece wants two more years to implement its latest austerity program, and will formally ask European leaders for the extra time next week, according to the Financial Times on Tuesday. The extra time would allow Greece to spread out budget cuts over a longer period as it tries to spur economic growth in order to be able to [...]
Greek Prime Minister Antonios Samaras is meeting Athens’ international lenders to outline the indebted country’s new painful cost-cutting reforms in order to get the rescue loans.
Samaras, who came to power roughly one month ago, meets with the international austerity inspectors under intense pressure to implement Greece’s reform pledges.
“The European Union, International Monetary Fund [IMF] and the European Central Bank [ECB] started a new scrutiny of the debt-laden country’s austerity program [...]
via english.capital.gr:
Only a month after Greece installed a new government, the country is facing renewed peril. Its official lenders are signaling a growing reluctance to keep paying the bills of the nearly bankrupt nation, even as the government is seeking more leniency on the terms of its multibillion-euro bailout.
Adding to the woes, there is little agreement within either side. The Greek government is itself a motley coalition of conservatives and Socialists, [...]
(Reuters) - Spain may have won some time with markets and praise from Europe but it has little left in the locker to avoid a state bailout as a new 65-billion-euro austerity program could deepen the country’s economic woes rather than solve them, analysts say.
The measures announced on Wednesday saw Prime Minister Mariano Rajoy backtrack on many of the pledges he campaigned on six months ago, to meet demands made by the [...]
ATHENS, Greece (AP) — Greece’s new government will present “alarming” data on its recession and unemployment to international debt inspectors this week, in a bid to renegotiate the terms of its bailout agreements.
Spokesman Simos Kedikoglou said in a television interview Tuesday that the data would demonstrate that the current austerity program was counterproductive. He did not elaborate.
Greece is relying on rescue loans from its partners in the eurozone and the International Monetary Fund to avoid bankruptcy. [...]
ATHENS—Greeks began voting Sunday in crucial national elections that are widely seen as a de facto referendum on the country’s future inside the euro, the outcome of which risks setting off a new bout of panic in global financial markets already frayed by Europe’s two-year-long sovereign debt crisis.
At stake isn’t just control of Greece’s 300-member parliament but potentially the fate of Europe’s fragile 17-member currency bloc. The raging crisis has [...]
ABC Australia Radio – The World Today
by Eleanor Hall Monday, May 21, 2012 12:34:00
Transcript:
http://www.abc.net.au/worldtoday/content/2012/s3507248.htm
MP3 Audio:
http://mpegmedia.abc.net.au/news/audio/twt/201205/20120521-twt-fullprogr…
–
” …
YANIS VAROUFAKIS: The European leadership. Europe’s leadership is going to go down in history over the next hundred years as a case study in the great universities around the world of how not to deal with a crisis.
ELEANOR HALL: You said that the austerity program is irrational for countries like Greece. How bad is it living [...]
A client note says the chance of an exit up to 50% from 20% previously. For what it’s worth,InTrade has the probability at 42.9% this year and 58.4% next year.
If Greece leaves it will cut domestic GDP by an addition 5-10 percentage points and the rest of the region by 2 pp.
They believe that Europe is “likely to concede a huge amount of ground on the pace of adjustment” in Greece [...]
by Christ Martenson
Well, my hat is off to the global central planners for averting the next stage of the unfolding financial crisis for as long as they have. I guess there’s some solace in having had a nice break between the events of 2008/09 and today, which afforded us all the opportunity to attend to our various preparations and enjoy our lives.
Alas, all good things come to an end, and a [...]
Intro: After the elections the country is in even deeper chaos, ungovernable. The greek young lady: The politicians have decieved people for many years and we are in deep trouble. The man: In a fallen state, there is a lot of corruption (EU paper:) and criminal energy. Next man: With the correct numbers, Greece would not have been admitted to the Euro. The Greek Politician: Frau Merkel – the austerity [...]
(CNN) – Two European elections, in France and Greece, have thrust the radical fringe into the spotlight.
In Greece, voters disillusioned by a brutal austerity program pushed through by the two mainstream parties have turned instead to parties on the far left and far right.
As a result, a leftist coalition opposed to austerity is seeking to form a government, and Golden Dawn — an ultranationalist party linked to street violence and neo-Nazism [...]
kingworldnews
With continued volatility in gold and silver, today King World News interviewed 25 year veteran Caesar Bryan. Gabelli & Company has over $31 billion under management and Caesar Bryan has managed the gold fund since its inception in 1994. Caesar told KWN Europe is moving away from austerity and the fundamentals for gold are still solid. He also addressed the mining shares, but first, here is what Caesar had to say [...]
ATHENS—Greece’s party leaders will begin cross-party talks Monday in an attempt to form a government, but prospects for a coalition appeared dim after Sunday’s vote delivered a political deadlock, making fresh elections almost inevitable and casting doubt over the country’s future in the euro zone.
In a stinging rebuke of Greece’s two mainstream parties and the austerity policies they backed, the conservative New Democracy party and the Socialist Pasok party garnered [...]
Kathy Lien, director of currency research at GFT, sees lots more uncertainty ahead for the euro in light of Greece’s jumbled election results.
Basically Greece faces three choices, according to Lien.
“…they can form a weak coalition government that will make lame decisions on austerity and reform, they can form a unity government but this could lead to renegotiation of the austerity program or they could call for new elections next month. [...]
By: Dr_Volkmar_G_Hable, marketoracle.co.uk
Few Americans will have noticed that this Sunday the end of the Euro will take place. On that day the final run-off ballot between current French president Mr. Sarkozy and socialist presidential candidate Mr. Hollande will decide over the future of the Euro.
According to all polls the leftist socialist candidate Mr. Hollande will win by a safe margin over the current president Mr. Sarkozy and will be the next French [...]
“Europe is in big trouble, and the trouble is getting worse – much worse” is how Charles Biderman begins his latest missive. The diatribe focuses on the shortcomings of both the left (the existing political structure of government-dominated economies) and the right (a German-style austerity program of slashing spending and raising taxes) of inane politicians in Europe as the two main issues of over-spending and declining economic activity come home to [...]
The ill will many Greeks feel toward Germany for imposing painful financial conditions on the massive loans the country made to them are just a normal response to a difficult situation, says German Finance Minister Wolfgang Schaeuble. It’s natural for people suffering from their own mistakes to blame others, Schaeuble tells Steve Kroft for a story explaining Europe’s debt crisis – a scenario that could worsen and affect the U.S. [...]
(CNBC) Spain’s eye-wateringly high unemployment the and collapse of its real estate market mean that Spain has significantly worse problems than Greece and could threaten the euro zone’s new-found, albeit fragile stability, an analyst told CNBC.com Tuesday.
“Spain has very large downside risks and it needs to tread very carefully – Spain is in a very fragile situation. Its problems are significantly worse than Greece’s,” Sony Kapoor, managing director at international [...]
The real question that we face for all the markets is WHEN will the Sovereign Debt Crisisgo into meltdown? We are in the 13th year from the Major Directional Change of 1999 that marked the birth of the Euro, low in gold and crude oil, and the bubble in shares that peaked in many countries in 2000.
Just as the United States has been obsessed with the Great Depression as government always is ready to [...]
http://www.spiegel.de/international/world/0,1518,801333,00.html
“Never before has the world been as close to war with Iran” Der Speigel. — This seems to be another level of austerity program. — How much of the economic fix depends on crushing Iran’s economy? See: “The EU added 143 Iranian entities and 37 individuals to the list of those who assets would be frozen and who are banned from entering the 27-nation bloc. A decision on whether or [...]
Via Lew Spellman of the Spellman Report
How Monetization Happens: Being at the Helm When the Ship Goes Down
The consequences of excess debt are now facing the leaders of Europe head on, and a monumental decision must be made whether explicitly or implicitly. Excess debt leads to a long chain of D words:Deleveraging in an attempt to retire debt results in a depressed economy and declining asset prices. The depressed economy breeds private debt defaults that [...]
The market rationale that the Berlusconi toss out is bullish is patently absurd. In reality Berlusconi inherited a sinking debt trap ship, and already ran a decent austerity program for Italy keeping them in the game for the last few years. He also kept a government together, no small task in Italy. It would be like an effective budget hawk being elected President of the US today and quickly reigning in [...]
Michael Hudson
Global Research
October 10, 2011
The seeds for President Obama’s demagogic press conference on Thursday were planted last summer when he assigned his right-wing Committee of 13 the role of resolving the obvious and inevitable Congressional budget standoff by forging an anti-labor policy that cuts Social Security, Medicare and Medicaid, and uses the savings to bail out banks from even more loans that will go bad [...]
By Anusha Shrivastava, MarketWatch
–Portuguese PM revises GDP growth forecast for 2011 to -1.8% from -2.2% and for 2012 to -2.3% from -1.8% prior
–Downward revision due to global economic slowdown
–Calls on euro zone to prevent Greek default
–Madeira debt problem created a ‘credibility’ issue, final figures to come next week
(Adds comment from prime minister about the timing of any Greek default should one occur)
NEW YORK (MarketWatch) — Portugal’s prime minister on [...]
Euroview: Whatever is agreed by its rescuers, the scale of Greece’s debts and the needed austerity program make it impossible to see how Greece will avoid default without a Eurobond. And the political will for a Eurobond isn’t there.
By: Patrick Allen
CNBC EMEA Head of News
Deutsche Bank’s CEO on the outlook for banks.
The DAX [.GDAXI 5255.32 -283.01 (-5.11%) ] led the losers, falling by over 5 percent, while stocks in London and Paris also fell sharply.
The biggest loser in Germany is Deutsche Bank [DB 36.27 -2.33 (-6.04%) ] after CEO Joseph Ackermann told a banking conference that the euro zone debt crisis could [...]
by ZH
While the US was panicking over a double zero jobs report, things in Europe just fell off a cliff. As both the WSJ and Reuters report, it seems that the second Greek bailout, following repeated and consistent disappointments by Greece which has resolutely refused to comply with the terms of its fiscal austerity program, has just collapsed.And with the US closed on Monday: long [...]
From Citi’s Englander:
It looks increasingly likely that the Greek austerity vote will pass and this has very much been priced into asset markets over the last two days. What is surprising to us is: 1) the degree to which the EUR has swung on these news and 2) the degree to which the sentiment on the vote has carried global asset markets. We are surprised [...]
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