Category: Global Debt Crisis
The analysis published under this category are as follows.
Friday, November 04, 2011
Wondering About the Size of Greece Debt Exposure? / Interest-Rates / Global Debt Crisis
By: Asha_Bangalore
Greek drama is now no longer confined to the literature class. The current Greek economic drama will be enshrined in economic history books and economic/financial policy studies. As the crisis has unfolded, it has been frequently challenging to find a succinct representation of the exposure to Greek debt. Thanks to the folks at the BBC, here is that picture.
Read full article... Read full article...
Friday, November 04, 2011
Next Stage of the European Debt Crisis; Towards Global Financial Collapse? / Politics / Global Debt Crisis
By: Bob_Chapman
Those who believe the European crisis is over are mistaken. The dislocation will continue as their economies slow and political, social and economic events converge into further crisis. The most glaring problem is the banks only taking a 50% loss on Greek bonds. The loss should have been 75% or even 80%. There is absolutely no way Greece can overcome that burden in a slowing European economy and an enraged population. They are still striking and demonstrating and they will continue even under a new government.
Wednesday, November 02, 2011
Will Greece 50% Debt Default Plan Fix the Euro-zone? / Economics / Global Debt Crisis
By: Frank_Shostak
Last Thursday, October 27, European leaders secured an agreement from eurozone banks to take a 50 percent loss on the face value of their Greek debt. The leaders also set in place a plan to force banks to raise new capital to insulate them from potential sovereign-debt defaults.
The banks must meet 9 percent capital reserves by June 30, 2012. It is estimated banks' capital needs will stand at 106 billion euros.
Read full article... Read full article...
Tuesday, November 01, 2011
Auf Wiedersehen, Au Revoir, Greece! / Politics / Global Debt Crisis
By: Axel_Merk
Greek Prime Minister Papandreou is throwing in the towel: by calling for a popular vote on austerity measures now, we believe he is almost assured a no vote. This allows Papandreou to say that he tried everything he could to avoid a default, but the people have spoken. Having said that, as we write this analysis, Papandreou appears to be changing his mind and may cancel the idea of a referendum as quickly as it came about. Still, the message is clear: a default is coming.
Read full article... Read full article...
Tuesday, November 01, 2011
The Debt Burden Zombie Club of Nations / Interest-Rates / Global Debt Crisis
By: Michael_Pento
Greece has supposedly received a bailout and markets across the globe are soaring. In fact, they are rising in the same manner they did a few months after the bailout of the U.S. financial system, now known as the Emergency Economic Stabilization act of 2008. However, the truth is there is no such thing as a complete and genuine bailout; there is only a transfer of burden from the government and banks to the middle class.
Read full article... Read full article...
Tuesday, November 01, 2011
Spain's Economic Crisis Shows the Eurozone Can't Escape its Debt Trap / Interest-Rates / Global Debt Crisis
By: Money_Morning
David Zeiler writes:
Fresh evidence of Spain's deepening economic crisis has revived fears about that nation's ability to dig out of its sovereign debt problems, and illustrates why the Eurozone debt crisis is likely to drag on for years.
Spain's gross domestic product (GDP) was flat in the third quarter, the country's central bank said yesterday (Monday). That follows anemic growth of 0.4% in the first quarter and 0.2% in the second quarter.
Read full article... Read full article...
Sunday, October 30, 2011
European Debt Crisis Summit: A Definite Plan But with No Details / Interest-Rates / Global Debt Crisis
By: John_Mauldin
Where is the peace dividend that was supposed to come after the end of the Cold War? Where are the fruits of the amazing gains in efficiency that technology has afforded? It has been eaten by the bureaucracy that manages our every move on this earth. The voracious and insatiable monster here is called the Federal Code that calls on thousands of agencies to exercise the police power to prevent us from living free lives.
It is as Bastiat said: the real cost of the state is the prosperity we do not see, the jobs that don't exist, the technologies to which we do not have access, the businesses that do not come into existence, and the bright future that is stolen from us. The state has looted us just as surely as a robber who enters our home at night and steals all that we love. - William "Bill" Bonner
Read full article... Read full article...
Sunday, October 30, 2011
Strawberry Fields Finance, Debt Growth - Economic Contraction / Economics / Global Debt Crisis
By: Andrew_McKillop
Long ago the Beatles sang that nothing is real but its nothing to get hung about. In the global finance system however, cracking sounds are real and able to mightily hang up business as usual. Europe's sovereign debt financing charade has reached daily heights of unreality as the Greek crisis shifts to rising bond rates on Italian debt, with Spanish, French - and German - debt financing crises promised, or threatened for later on. Maybe soon.
Saturday, October 29, 2011
Saving The Eurozone, Will it Work? / Politics / Global Debt Crisis
By: Bob_Chapman
It is now clear to the most casual observer that the world’s monetary and financial system cannot function without massive amounts of additional money and credit. That means the system no longer functions the way it should. Europe really doesn’t know what to do and neither does the Fed and the Bank of England. The exception is throwing more money at the problem and keeping interest rates near zero indefinitely. Many US, UK and European banks are insolvent. The real estate market continues to deflate throughout Europe with the exception of Germany, which never really rose in price. Again, there are no solutions offered to solve this problem. Just as there are no solutions elsewhere. These conditions tell us the euro has serious problems to face as does the pound and the US dollar. You have to then say to yourself against what. Each currency has its own problems, thus, the only alterative is to measure each currency versus gold and silver. These are the true benchmarks, and when compared over the last 11-1/2 years, versus nine major currencies gold and silver on average annually have appreciated more than 20%. That tells you anyone holding currencies has been a major loser.
Friday, October 28, 2011
So How Do These Sorts of Crises End? / Interest-Rates / Global Debt Crisis
By: Paul_Tustain
However this crisis is resolved, guess who'll be footing the bill...
The World has endured these sorts of crises before. Somehow they come to an end. What happens?
Read full article... Read full article...
Friday, October 28, 2011
“Standard” Credit Default Swaps on Greece Are a Sham and It’s Not a Surprise / Interest-Rates / Global Debt Crisis
By: Janet_Tavakoli
At least it’s not a surprise to any financial professional that has paid attention to the false reassurances that the International Swaps and Derivatives Association, Inc. (ISDA) has given over the years to naïve participants in the credit derivatives market.
Read full article... Read full article...
Friday, October 28, 2011
Greece 50% Debt Default, Greek Bondholders at a Loss / Interest-Rates / Global Debt Crisis
By: Peter_Schiff
Michael Finger writes: In an agreement announced overnight, the European Union offered $100 billion to stem an imminent Greek debt default in exchange for a 50% haircut to Greek bondholders. This is a bittersweet victory for those of us who believe in the power of the free market.
Read full article... Read full article...
Tuesday, October 25, 2011
How Difficult Will it be to Solve the Problems of the Eurozone? / Politics / Global Debt Crisis
By: John_Mauldin
Do we need a law that makes it illegal to push a moose out of a moving aircraft? In baseball, what are the odds of a perfect game? How difficult will it be to solve the problems of the Eurozone? These and other issues are meditated upon by Grant Williams in his Things That Make You Go Hmmm… letter, which is this week’s Outside the Box. Maybe it was the baseball set-up (as my Rangers battle the Cardinals in the World Series) or that I keep getting asked about Europe here in New Orleans at the 2011 Oppenheimer Wealth Management Roundtable, but Grant really pulled me through his weekly missive when I got started, and I believe you will enjoy it as well. Long and short, Grant lays out the problems that we face in a very realistic assessment. I will also point out that he makes me look like a euro-optimist.
Tuesday, October 25, 2011
The Real Debt Crisis Contagion Risk / Economics / Global Debt Crisis
By: Dr_Martenson
Around here we like to track things from the outside in, as the initial movements at the periphery tend to give us an early warning of when things might go wrong at the center. It is always the marginal country, weakest stock in a sector, or fringe population that gives us the early warning that trouble is afoot. For example, rising food stamp utilization and poverty levels in the US indicate that economic hardship is progressing from the lower socioeconomic levels up towards the center -- that is, from the outside in.
Monday, October 24, 2011
Global Debt Crisis, What They Are Doing? / Politics / Global Debt Crisis
By: Fred_Sheehan
The Euro and You described a fundamental problem of world finance. The quantity of debt grows as the quality recedes. The problem of bad loans is no longer just the pre-2008 mortgages, CDOs, and LBOs. Debt issued after the bust is defaulting, such as Greek sovereign bonds, issued in June 2010. Some securities are born to part investors from their money, but it's remarkable the extent and variety of such instruments issued in 2011. The world choked on similar bonds and derivatives only three years ago, many of which are still held at false prices on financial institutions' books.