|
||||||
    |
The Dutch economy shrank by 1.1pc in the third quarter amid a deep housing slump, and even Austria has begun to succumb. Finland’s economy has shrunk by 1pc over the last year. “Recession comes as no surprise and it is going to get worse next year,” said Desmond Supple from Nomura. “Europe has imposed dusted-off policies from the 1930s and they are driving peripheral countries towards depression,” he said. “We are seeing [...] IMF Fears ‘Credit Shock’ In Spain The International Monetary Fund has issued a veiled warning that Spanish bond spreads could surge to a record 7.5pc and push the country into a deeper crisis if premier Mariano Rajoy continues to drag his feet on a bail-out request. The fund said sovereign debt woes were spilling into the broader Spanish economy, risking a “pernicious feedback loop” for private companies. The danger is another bout [...] From Telegraph: Bank of America said it expects a “powerful short squeeze” in risk assets as speculative funds unwind positions, led by a rebound in battered bank stocks and Club Med bonds. The euro would surge 10pc to $1.40 against the US dollar after dipping first to $1.20 in the immediate panic. The benign outcome assumes that the European Central Bank steps in with massive support, backed by the US Federal Reserve, [...] By Ambrose Evans-Pritchard
Another vast pledge to save the euro, another chance lost to break the hold of Europe’s austerity mystics and force a shift in strategic direction. “We’re north of a trillion dollars,” said Christine Lagarde, the International Monetary Fund’s queen bee. Kudos to her for netting such sums in her Louis Vuitton handbag but what exactly does this achieve, given that Europe remains bent on committing “economic suicide” — in the [...] Mohamed El-Erian, PIMCO’s chief executive, said Portugal will need a second rescue as the original package of €78bn (£65bn) falls short, setting off a political storm over EU rescue costs. “Unfortunately, that is how it will be. It will make the financial markets nervous because they are worried about a participation of the private sector,” he told Der Spiegel over the weekend. German finance minister Wolfgang Schäuble insists that Greece is a [...] by Clive Hale from View from the Bridge Stop The (Printing) Press!…. If Only We Could Hands up anyone who is surprised that the Bank of England has added another £50 billion to the quantitative easing pot? The same hands will also believe that the Greeks have agreed terms for the next bail out tranche with the Troika (the European Union, the IMF and the European Central Bank). This ongoing epic odyssey of [...] Europe’s scorched-earth policies have begun in earnest. The inherent flaws of monetary union have created a crisis of such gravity that EU leaders now feel authorized to topple two elected governments.
As I long feared, the flood of cheap credit into Southern Europe and the slow death of Club Med industry by currency asphyxiation have together created such a dangerous situation for world finance that informed opinion is willing to turn [...] 2011-NOV-07 Italy’s borrowing costs have hit new euro-era record highs this morning. 10-year Italian government bonds are now yielding more than 6.6%, With Bloomberg Warning That The Country Is Heading Down The Same Path Taken By Greece, Portugal And Ireland. By way of comparison, Germany is able to borrow for 10 years at 1.76% (a paltry return for investors, given that eurozone inflation is currently running above 3%. But then, traders have made [...] On a very slow trading day, some big picture observations from Russ Certo of Gleacher: On The Linkage Between Politics And Markets Good afternoon. The S&P 500 slid for a sixth straight week, its longest swoon since July 2008. The Dow closed below 12,000 for the first time since March, and 6.7% off the highs and has been bantering around all day today. Declining stocks outpaced advancing [...] by ObaMao Some sober data on who are the top 5 contributors to IMF: A “Who Is Who†Of Countries About To Fund The IMF’s Bail Out Of Europe When back in April we wrote about the huge expansion in the [...] Soros is just telling us what we all know, but some people don’t want to admit. No wonder the right hates him so much. Spending increases aggregate demand and grows the economy. When the private sector is too far in debt to narrow the output gap and reduce unemployment, the government has to pick up the slack. Fiscal stimulus cuts the deficits by generating more government revenue. People mistakenly believe that deficits [...] >>> from The Telegraph June 14, 2010 AXA fears ‘fatal flaw’ will destroy eurozone… Analysts at the French financial group AXA see a serious likelihood that the eurozone will break in half or disintegrate, dismissing Europe’s €750bn (£623bn) rescue package for Club Med debtors as a stop-gap measure that misdiagnoses the problem. The markets are very nervous because they can see that there is a fatal flaw in the system and no [...] http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7742355/Germanys-desperate-short-ban-triggers-capital-flight-to-Switzerland.html If the purpose of BaFin’s action was to drive wolfpack “speculators” off Greece’s back, it failed. Yields on 10-year Greek bonds rose 37 basis points to 7.918pc. What it showed is that CDS contracts barely matter. The issue is whether “real money” investors such as the Chinese central bank are willing to buy Greek and Portuguese debt. The short ban set off instant capital flight to Switzerland. BNP Paribas said €9.5bn [...] |
Custom Search
|
||||
|
Copyright © 2013 InvestmentWatch - All Rights Reserved |
||||||
