By Wolf Richter
Eurozone countries are falling like dominos. Next: Slovenia. But bailouts – by taxpayers in other countries – keep banks from collapsing, governments form defaulting, and investors from incurring well-deserved losses. In the US, President Obama’s budget, with its new taxes, is causing heart palpitations left and right. But how do countries really stack up?
Eurozone countries are falling like dominos. But bailouts—funded by taxpayers in other countries—keep banks from [...]
We had a fairly decent monthly employment print this Friday which followed some decent ISM numbers. Based on these survey’s, an argument can be made that the FED has averted (at least prolonged) a near certain recession. Not everybody is convinced, I know I’m not. Aushtan from ECRI is sticking to his call (see “What I’m watching section”) too. I guess the FED doesn’t think so either; otherwise rates wouldn’t [...]
by John Aziz, Azizonomics:
This is just a disaster — and more prolonged than the depression of the 1930s:
And even more of a disaster when we consider the impact this has had on youth unemployment, which has climbed far above the EU and OECD averages (although nothing like as badly as Spain or Portugal):
This is not just a failure of government austerity, although that in itself has totally failed to ignite any [...]
With rates scheduled to rise in January, the study describes the six reasons why capital gains tax rates should be kept as low as possible.
The piece also notes that the new top U.S. capital gains tax rate in January of 28% will be much higher than the 16% average in the OECD.
Here is the study:
And here is a related IBD op-ed.
The top federal tax rate on capital gains is set [...]
Over an early-morning coffee with the chief executive of an FTSE 100 business last week, talk turned to the outlook for 2013. Where I had expected some guarded optimism, instead I heard a chilling analysis.
The CEO said he had been reading a new paper from Boston Consulting Group headed “ Ending the era of Ponzi finance ”. The lessons he had taken from it were miserable.
The West was not going to find [...]
The world’s economy is in peril, and it doesn’t look like Singapore will be spared.
The government knows it, saying we have to be prepared for slow growth and periods of recession in the advanced economies in the next three to four years. Ministers telling us to save money for a rainy day, a lowered economic projection, all of this happening recently.
And it looks like even the average person on the [...]
NEW HAVEN – Recent indications of a weakening global economy have led many people to wonder how pervasive poor economic performance will be in the coming years. Are we facing a long global slump, or possibly even a depression?
A fundamental problem in forecasting nowadays is that the ultimate causes of the slowdown are really psychological and sociological, and relate to fluctuating confidence and changing “animal spirits,” about which George [...]
Dear Obese America: Uncle Sam Wants To Regulate What You Eat
It seems that the recent foray of Mayor Bloomberg into determining what one may and may not consume based on calorie count, was just the appetizer, so to say. As some may recall, back inMarch we wrote that based on OECD predictions, up to 75% of the US nation will be overweight or obese. Now, none other than Uncle Sam has gotten [...]
The recent deterioration of sentiment on China has been surprising even to us, as economists rushed to cut their GDP forecasts one after another. That is, before the QE Infinity announcement, Germany Constitutional Court ruling, and the ECB’s OMT, so the sentiment is certainly as bad now as it was two weeks ago.
Although we now see some reasons to expect pick-up, or at the very least a stabilization of [...]
FRANKFURT (MarketWatch) — European Central Bank President Mario Draghi indicated that the institution is ready to resume purchases of Spanish and Italian government bonds in a bid to bring down borrowing costs and ensure the survival of the euro.
“Within our mandate, the ECB is ready to do whatever it takes to preserve the euro,” Draghi said, at an investor conference in London. “And believe me, it will be enough.”
These would be the European Stability Mechanism and the European Financial Stability Facility.
German Government to stall ratification of ESM until mid September pending a full review of its legality under the German constitution. If this gets ratified, the Dow is going higher.
Germany’s delay in ratifying the permanent European Stability Mechanism is “worrisome,” the Organization for Economic Cooperation and Development’s chief economist, Pier Carlo Padoan, told La Stampa.
“We have in front [...]
The U.S. is already in a recession according to Societe Generale’s bearish analyst Albert Edwards.
Earlier this month Edwards said companies could see their incomes drop 30 – 40 percent because of the recession, and that the S&P 500 could see its index halved to 666 points.
And he is basing this on a decline in analyst optimism that is a good leading indicator of economic activity:
“Regular readers will know that we have always [...]
We ran this chart from Pew on Tuesday, and since then it’s become a huge phenomenon.
People are in love with this fact that Greece, and only Greece, is the country that doesn’t see Germany as the most hardworking, and that in face they see themselves as the most hardworking.
And while everyone is mocking it, people are mounting a spirited defense of the Greeks.
Brad Plumer at WaPo’s wonkblog notes that OECD stats say [...]
George Osborne pushed on growth as OECD says ‘loosen purse strings’
The Government should consider borrowing more to pay for vital infrastructure projects in an attempt to stimulate growth, according to the Organisation for Economic Co-operation & Development’s UK specialist.
The think tank said the Chancellor could let his debt-reduction target slip a year without suffering a backlash in the bond markets.
The comments, from Christophe André, acting head of the OECD’s UK [...]
A week ago we had the displeasure of reminding America that in 8 years three quarters of the population will be obese. We said that “many forget that a much more serious long term issue for the US (assuming anyone cares what happens in the long run) is a far more ominous secular shift in US population – namely the fact that everyone is getting fatter fast, aka America’s “obesity epidemic.” And [...]
Gold Nears $1,700/oz After Bernanke QE Hints, OECD $1.3 Trillion Eurozone ‘Firewall’ and Despite Indian Gold Strike
Gold’s London AM fix this morning was USD 1,694.00, EUR 1,266.54, and GBP 1,059.55 per ounce.
Yesterday’s AM fix was USD 1,658.00, EUR 1,255.02 and GBP 1,047.91 per ounce.
Gold rose 1.76% in New York yesterday and closed at $1,693.47/oz. Gold traded sideways during Asian trading and then buying in Europe drove it to over [...]
By William L. Watts
FRANKFURT (MarketWatch) — Euro-zone finance ministers meeting at the end of this week need to boost the firepower of the region’s rescue funds to at least 1 trillion euros ($1.34 trillion) in order to restore market confidence, Angel Gurria, secretary-general of the Paris-based Organization for Economic Cooperation and Development, said Tuesday. Gurria, in a statement, said a credible firewall will provide governments with the breathing space [...]
EVERY so often someone asks me: “What’s your favorite country, other than your own?”
I’ve always had the same answer: Taiwan. “Taiwan? Why Taiwan?” people ask.
Very simple: Because Taiwan is a barren rock in a typhoon-laden sea with no natural resources to live off of — it even has to import sand and gravel from China for construction — yet it has the fourth-largest financial reserves in the world. Because rather [...]
The debt-wracked eurozone needs to build “the mother of all firewalls” to prevent the crisis spreading throughout the bloc, the head of the OECD said on Saturday ahead of a crunch G20 meeting.
“We still have to build the mother of all firewalls,” Angel Gurria, Secretary General of the Organisation for Economic Cooperation and Development, told bankers ahead of the gathering of top ministers and central bankers.
“To be strong, we have to have a thick [...]
All eyes are on Greece these days, with hopes that the situation there can soon be resolved and global recovery kicked into high gear.
Sadly, those hopes are misguided claims, says Ben Davies, CEO of Hinde Capital. In fact, he says, Greece’s pain foreshadows the future awaiting the rest of the world.
It all comes down to simple math. Greece has increased its debts at a rate far faster than its [...]
A friend pointed me to this recent article.
As you probably already know, the scenario of the Sun doing a huge coronal mass ejection causing a huge electrical current to surge through the ground into the power lines, knocking out the grid is not something to look forward to.
Others have suggested than an event of this type would be only the beginning given the need for all of the nuclear power [...]