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George Soros Warns “Central Banks Are Creating Financial Instability” While the crisis in Europe is first in Goerge Soros’ mind because it is the “hottest” risk flare currently, his biggest concern in what he calls the “disarray in global cooperation,” or what we would call ‘dueling central banks’. “The almost universal adaptation of quantitative easing,” worries him and he notes that “Europe is the last bastion of orthodoxy,” in this regard [...] CYPRUS & THE EU: CHAOS & COLLAPSE – Andy Hoffman
CONTAGION MAY SPREAD TO SPAIN & ITALY Burning senior bond holders could create contagion again in European debt markets and now in addition to that bureaucrats have managed to make depositors in periphery nations nervous about their deposits in banks. This could precipitate bank runs in Greece, Spain and Italy with obvious negative ramifications for the entire EU banking and financial system. Cyprus is a little [...] After marathon and heated discussions, agreement was reached on a new rescue package for Cyprus. Compared to what had emerged a week earlier, this is a better technical outcome — both in what it contains and in what is left out. Yet implementation will be very challenging, especially as Europe is yet to find an answer to the most important question of all: how to improve growth and employment prospects in a [...] Rosenberg – 16 Reasons I’m Not Buying The Employment Report I went through the January data one last time with a fine tooth comb. I fail to see what got everyone so excited, beyond the upward revisions to the back data. That only proves that productivity has been weaker than initially thought. And the income from those upward job revisions has probably already been spent. But as I highlighted yesterday, the [...] EL-ERIAN: This ‘Great Rotation’ Is Actually Money Falling Off Of The ‘Trillion Dollar Deposit Cliff’ Citi strategists pointed out, though, that January is always a strong month for inflows, which means what we are seeing likely owes to seasonality. Even still, flows into equity funds this January are much bigger than usual. In an interview with Bloomberg TV this morning, Mohamed El-Erian, the CEO of PIMCO – which is the world’s biggest bond fund [...] Why Is Germany Demanding 300 Tons of Gold from the U.S. and 374 Tons from France? The German’s are demanding that the U.S. return all of the 374 tons of gold held by the Bank of France, and 300 tons of the 1500 tons of bullion held by the New York Federal Reserve. Some say that Germany is only demanding repatriation of its gold due to internal political pressures, and that no [...] by WashingtonsBlog Why Is Germany Demanding 300 Tons of Gold from the U.S. and 374 Tons from France? The German’s are demanding that the U.S. return all of the 374 tons of gold held by the Bank of France, and 300 tons of the 1500 tons of bullion held by the New York Federal Reserve. Some say that Germany is only demanding repatriation of its gold due to internal political pressures, and that no [...] from HUFFPOST: As the year comes to an end, dysfunctional Congressional politics continues to dominate the headlines, and rightly so. Our politicians are scrambling to deal with a mess that they created all on their own — a fiscal cliff that risks pushing the country into recession. And while a last minute “micro deal” is still possible, there will be little celebration, nor should there be. Whatever transpires in the next few days, [...] Essam al-Erian, deputy head of the Muslim Brotherhood’s Freedom and Justice Party, called on Egyptian Jews to leave Israel to the Palestinians and return to their own homeland. “Their presence in Palestine contributes to the Zionist occupation of Arab lands, and every Egyptian has the right to live in his country — nobody can deny that,” Erian said during an interview on the privately operated Dream TV on Thursday. … Read more:http://times247.com/articles/muslim-brotherhood-to-egyptian-jews-come-back#ixzz2GPN3GdH9  Nassim Taleb: Don’t Be Fooled By The Fiscal Cliff, Stabilization Won’t Save Us From Economic Turmoil THE fiscal cliff is not really a “cliff”; the entire country won’t fall into the ocean if we hit it. Some automatic tax cuts will expire; the government will be forced to cut some expenditures. The cliff is really just a red herring. Likewise, any last-minute deal to avoid the spending cuts and tax increases scheduled [...] NEWPORT BEACH – What if members of the United States Congress, now returning from their summer recess, were to receive a “back to school” letter from concerned citizens? Here is what a first draft might look like. Dear Member of Congress: CommentsWelcome back to the Capitol. We hope that you had a good summer break, and that you return to Washington not just rested, but also energized to take on [...] Many feel that Greece’s fate, including its continued membership of the eurozone, rests in the hands of the Troika – officials from the European Commission, European Central Bank and the International Monetary Fund charged with evaluating Greek’s reform efforts, its financing needs and how they should be met. But this is not the entire story by any means. The country’s fate is also closely linked to what happens in Italy and Spain, and [...] From Bloomberg: The three central bank meetings this week — the Bank of England, the European Central Bankand the Federal Reserve – made very good cases for additional stimulus measures, though they failed to specify what these would be. Equities and certain bonds that had surged on the basis of last week’s verbal assurances by central bankers and political leaders sold off. There was no panic given central bankers’ promises to do more in the future [...] Mohamed El-Erian, the CEO of PIMCO – the biggest bond fund in the world – is not a huge fan of the Fed right now. In a new Financial Times op-ed, El-Erian says that yesterday’s FOMC policy meeting demonstrates that the U.S. is in “policy purgatory.” In the piece, El-Erian explains how the Fed is making things worse right now: While some would have favored even greater policy activism, the Fed’s measures have been unprecedented – [...] Greece may have to exit the 17-nation euro and the monetary union should plan for it to ensure stability, according to Pacific Investment Management Co.’s Mohamed El-Erian. “A Greek exit will be expensive and messy, but it’s probably inevitable and therefore we should plan for it,” El- Erian, the chief executive officer of the world’s largest manager of bond funds, said in an interview on Bloomberg Radio’s “Bloomberg Surveillance” with Tom Keene and [...] From Project-syndicate.org: SEATTLE – Greece is following the road taken by several other crisis-ridden emerging economies over the past 30 years. Indeed, as I argued earlier this year, there are stunning similarities between this once-proud eurozone member and Argentina prior to its default in 2001. With an equally traumatic implosion – economic, financial, political, and social – now taking place, we should expect heated debate about who is to blame for the deepening [...] From pimco: It is high time for other agencies, in both the public and private sector, to step up to the plate. They should – indeed, must – use their better-suited instruments to help lift impediments to sustainable non-inflationary growth and job creation. In other words, it is about improving the prospects for higher economic activity and, therefore, “safe de-leveraging.” This is not to say that central banks will no longer have an [...] LONDON (Dow Jones)–Greece’s debt reduction deal last week only provides a bit more time before another “messier” restructuring may be needed, Mohamed El-Erian, chief executive of the world’s largest bond investor, Pacific Investment Management Co., writes in the Financial Times Tuesday. In an opinion piece, El-Erian says even if the EUR130 billion … http://online.wsj.com/article/BT-CO-20120313-704840.html Simone Foxman One of the biggest macro events we’re watching right now is a meeting of G20 finance ministers taking place in Mexico City starting today and continuing into the weekend. It seems likely the meeting will focus on how to deal with the fallout from an upcoming Greek default—selective or not—but there are few more points we’ll be watching closely: The IMF’s willingness to bail out Europe: The U.S. in particular has proved [...] At TIGER 21 event, Soros was asked for his predictions on everything from Jon Corzine going to jail to Obama’s re-election chances The wealthy investors who make up the peer-to-peer learning group TIGER 21 like to invite heavy hitters, such as Mohammed El-Erian, Carl Icahn and Jim Rogers, to their Headliner Lunches. In December, George Soros joined that illustrious roster, according to a statement from the group released Wednesday. In an interview [...] 1) Spanish Yields Surge in EU3.31 Billion Sovereign Debt Auction “Spain sold 3.31 billion euros ($4.72 billion) of bonds at higher interest rates after the yield on the country’s 10-year bond approached the 7 percent mark that heralded the bailouts of Greece, Portugal and Ireland. The Treasury in Madrid sold 2.2 billion euros of April 2014 bonds at an average yield of 4.813 percent, compared with 4.291 percent [...] Posted Wednesday, 22 June 2011 Mohammed El-Erian is given credit for the phrase ‘The New Normal’ to mean an altered state of perceived instability within the normalcy realm, as in crisis being called normal, like endless crisis. As buddy Jim Mess in Europe says, just like trying to redefine what debt default is, it sounds like high octane prevarication. El-Erian is considered one of the good [...] Europe is at risk of wasting billions more on Greece and other countries if they don’t reform their economies to increase growth, according to Pimco’s Mohamed El-Erian.”Further on, if this approach is kept up, more money will be wasted to save private creditors and the risk of a disorderly restructuring of the debt will be greater,” he said, according to Reuters. El-Erian argues that, thus far, Europe has [...] (Earlier we had this one: Markets Bracing For QE3 – Citigroup)
Prepare for More Money Printing: Analyst “Investors should prepare themselves for a third round of quantitative easing, Simon Maughn, co-head of European equities at MF Global, told CNBC Wednesday.” Michael Pento: QE3 Is Inevitable (Video) “Michael Pento makes a number of interesting points about the Federal Reserve’s balance sheet and the possibility of QE3 in this video. Some of [...] |
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