one small voice

Lagarde calls for bigger eurozone firewall

2012-01-24T06:00:00.000-05:00

Lagarde calls for bigger eurozone firewall
By Alan Beattie in Washington

The head of the International Monetary Fund said on Monday the eurozone needed a bigger firewall to prevent Italy and Spain sliding towards default, underlining Europe’s responsibility in solving its own sovereign debt crisis.

In a speech in Berlin, Christine Lagarde, IMF managing director, said that without a larger bail-out fund, fundamentally solvent countries like Italy and Spain could be forced into a financing crisis.

http://www.ft.com/intl/cms/s/0/52dcc61a-459f-11e1-93f1-00144feabdc0.html#axzz1kLMWe5p1

Failure Generation : Davos elites to seek reforms of 'outdated' capitalism

2012-01-23T06:00:00.001-05:00

Failure Generation : Davos elites to seek reforms of 'outdated' capitalism

Economic and political elites meeting this week at the Swiss resort of Davos will be asked to urgently find ways to reform a capitalist system that has been described as "outdated and crumbling."
"We have a general morality gap, we are over-leveraged, we have neglected to invest in the future, we have undermined social coherence, and we are in danger of completely losing the confidence of future generations," said Klaus Schwab, host and founder of the annual World Economic Forum.

"Solving problems in the context of outdated and crumbling models will only dig us deeper into the hole.

"We are in an era of profound change that urgently requires new ways of thinking instead of more business-as-usual," the 73-year-old said, adding that "capitalism in its current form, has no place in the world around us."

http://www.breitbart.com/article.php?id=CNG.be33fda73987ff722e71ca3a18f1bfaf.351&show_article=1

Ancient Greek sites could soon be available for rent

2012-01-18T06:00:00.000-05:00

Ancient Greek sites could soon be available for rent
(AFP) – 7 hours ago
ATHENS — Available for rent: The Acropolis.

In a move bound to leave many Greeks and scholars aghast, Greece's culture ministry said Tuesday it will open up some of the debt-stricken country's most-cherished archaeological sites to advertising firms and other ventures.

The ministry says the move is a common-sense way of helping "facilitate" access to the country's ancient Greek ruins, and money generated would fund the upkeep and monitoring of sites. The first site to be opened would be the Acropolis.

http://www.google.com/hostednews/afp/article/ALeqM5jeUrA6jll-SsuqVTVwl6nmZRk4LA?docId=CNG.f8db7d69218339b9285abcf6567bb20c.471

Portugal moves into default territory

2012-01-18T05:00:00.000-05:00

Portugal moves into default territory
By David Oakley
Portugal is trading in default territory after investors offloaded the country’s bonds this week amid rising fears of contagion. Worries are mounting that the private sector and Greece will fail to agree a restructuring package for Athens’ debt.

Many investors were also forced to sell Portuguese bonds after Standard & Poor’s downgraded the country to junk on Friday. Other funds sold Portuguese debt after Lisbon was removed from Citigroup’s European Bond Index, which these investors track, because of its fall to junk status.

http://www.ft.com/intl/cms/s/0/486cf342-411e-11e1-b521-00144feab49a.html#axzz1jla4qC8b

Germany rejects rescue fund boost, Greece under pressure

2012-01-17T06:00:00.000-05:00

Germany rejects rescue fund boost, Greece under pressure

(Reuters) - Germany, the only major euro zone member to retain a top-notch credit rating, refused on Monday to consider boosting the bloc's rescue fund, while Greece was under pressure to urgently break a deadlock in debt swap talks if it is to avoid an unruly default.

European leaders vowed to press ahead with a fiscal pact for stricter budget discipline and hasten the launch of a permanent bailout fund for the 17-nation euro area, the European Stability Mechanism, in the light of Standard & Poor's move last Friday.

http://www.reuters.com/article/2012/01/16/us-eurozone-idUSTRE80E0RN20120116

Fed to Weigh Further Easing Amid Doubts About Recovery

2012-01-16T06:00:00.001-05:00

Fed to Weigh Further Easing Amid Doubts About Recovery
Published: Friday, 13 Jan 2012 | 11:55 AM ET Text Size
By: Steve Liesman
Senior Economics Reporter

Federal Reserve officials are seriously considering giving the US economy—and especially the housing market—an added jolt with more quantitative easing.

Fed officials are likely to discuss such a move at their Jan. 24-25 meeting, when the central bank will issue its first quarterly forecast on interest rates under the new communication policy.

Two of the new voting members this year on the Federal Open Market Committee , which sets interest-rate policy, have recently suggested they would support more assets purchases.

http://www.cnbc.com/id/45977098

Banks say no deal on Greek debt

2012-01-13T16:00:00.000-05:00

Banks say no deal on Greek debt
BY: FROM CORRESPONDENTS IN WASHINGTON From: AFP October 27, 2011 9:39AM

THE group of major banks negotiating on a write-down of Greek sovereign debt say they have not reached a deal on its debt, including any new write-down.

"There has been no agreement on any Greek deal or a specific 'haircut'," said Charles Dallara, the head of the Institute of International Finance which is representing the banks in EU negotiations.

"We remain open to a dialogue in search of a voluntary agreement. There is no agreement on any element of a deal."

http://www.theaustralian.com.au/business/breaking-news/banks-say-no-deal-on-greek-debt/story-e6frg90f-1226178029025

Five European Nations to Be Downgraded by S&P: Report

2012-01-13T15:34:00.002-05:00

Five European Nations to Be Downgraded by S&P: Report
Published: Friday, 13 Jan 2012 | 1:18 PM ET Text Size
By: Antonia van de Velde
CNBC Associate Editor

Standard & Poor's will cut the credit ratings of Italy, Spain and Portugal by two notches and downgrade France and Austria by one notch, a French newspaper said Friday, without citing its sources.

The newspaper, Les Echos, said that S&P would spare Germany, the Netherlands, Finland and Luxembourg in its long-awaited adjustment of euro zone sovereign ratings.

It said the announcement would come at around 4:30 pm ET, after the US stock market has closed.

"Remain alert tonight when U.S. markets close," one euro zone source told Reuters.

http://www.cnbc.com/id/4598545

Top Indian businessman mocks Davos

2012-01-04T06:05:00.000-05:00

Top Indian businessman mocks Davos
Jan 3 05:07 PM US/Eastern

Top Indian industrialist Rajiv Bajaj mocked the World Economic Forum in Davos on Tuesday, saying the annual power bash in the Swiss Alps was the source of half the world's problems.
Rajiv Bajaj, the managing director of leading motorbike manufacturer Bajaj Auto, said he would reluctantly travel to the exclusive ski resort for the meeting for the first time later this month.

"I think half the problems start from the World Economic Forum," the no-nonsense executive told reporters at a product launch in New Delhi when asked about the glitzy January 25-29 meeting.

He said he was a believer in the power of engineering to solve problems, not the sort of "top-down globalisation" espoused by world leaders and businessmen in Davos.

http://www.breitbart.com/article.php?id=CNG.5d4866e77b6f7d7b4a432c8d01267956.621&show_article=1

World’s Biggest Economies Face $7.6 Trillion Debt

2012-01-03T05:45:00.002-05:00

World’s Biggest Economies Face $7.6 Trillion Debt
By Keith Jenkins and Anchalee Worrachate - Jan 3, 2012 5:22 AM ET

Governments of the world’s leading economies have more than $7.6 trillion of debt maturing this year, with most facing a rise in borrowing costs.

Led by Japan’s $3 trillion and the U.S.’s $2.8 trillion, the amount coming due for the Group of Seven nations and Brazil, Russia, India and China is up from $7.4 trillion at this time last year, according to data compiled by Bloomberg. Ten-year bond yields will be higher by year-end for at least seven of the countries, forecasts show.

Investors may demand higher compensation to lend to countries that struggle to finance increasing debt burdens as the global economy slows, surveys show. The International Monetary Fund cut its forecast for growth this year to 4 percent from a prior estimate of 4.5 percent as Europe’s debt crisis spreads, the U.S. struggles to reduce a budget deficit exceeding $1 trillion and China’s property market cools.

http://www.bloomberg.com/news/2012-01-03/world-s-biggest-economies-face-7-6-trillion-bond-tab-as-rally-seen-fading.html

CNBC : brain drain?

2011-12-26T12:33:00.001-05:00

CNBC : brain drain?
one small voice

I have to laugh a recent headline in the NY Post categorised the spat of departures from CNBC as ' brain drain" . I guess they haven't watched the has been network in quite some time.
.
The Post story goes on to say that CNBC has been saying goodbye to a lot of staff in the last few months. CNBC Europe chief Mike Buckley, and London correspondent Guy Johnson, are leaving as well as anchors Melissa Francis, Erin Burnett and Trish Regan all departed earlier this year unable to displace the very able and well qualified Maria Bartiromo as anchorwoman.

According to the Post former staffers for some time have dubbed the changes “brain drain” even speculating that CNBC’s often pompous and slightly out of it David Faber, might also be ready for a new challenge. The truth is Farber's one time spot on reporting has devolved in clueless self indulgence in recent years covered in a know it all smugness others suggest that few people out side of DC beltway insiders and the mainstream media establishment would consider the loss of Erin Bernett ,brain drain ?

CNBC has been over the years been plagued with questions of manipulation by skeptics and has over exposed itself to guests like Jon Corzine .A bad market as well as an extreme drift to the left by the network has lead to a loss to loyal viewers and perhaps the real reason is that the writing is on the wall with Fox business news already poached the better talent like Neil Cavuto and Liz Claman.

Last year Fox Business Network's Charlie Gasparino and MSNBC's Dylan Ratigan were on "The O'Reilly Factor" and "The Colbert Report," respectively, where each took the opportunity to sound off on the network they used to work for, CNBC. Both attacked the network editorial policy's .

Melissa Francis will join her former colleagues at Fox while Trish Regan will move to Bloomberg TV’s “Street Smarts,” . Bloomberg TV and news are also in desperate need of some quality editorial as they too have made a rabid shift to the left perhaps even rivaling MSNBC .

The drop in CNBC's ratings and the continued encroachment by Fox has left the once mighty business network scrambling for rating and and subleting time to infomercials and silly programs like American greed which belong more on daytime TV or TMZ.

The network doesn’t deny it has spent much of 2011 bringing in fresh legs. CNBC hired Seema Mody, Kayla Tausche, Andrew Ross Sorkin, Brian Sullivan and gave Gary Kaminsky, a permanent contract this year.Aussie import Amanda Drury, who moved from the Asian bureau in May 2010, remains in the mix as well with her midday market show. But the Post’s Page Six reported recently that the cable business channel didn’t make its budget and raised the possibility of cuts in the coming months all the while management is pushing for more "American Greed" type tripe to air on the network.

Light at the end of the tunnel: Interesting Dow Chart formation

2011-12-22T09:03:00.000-05:00

courtesy of Big Charts

Investors Lose Faith in Stocks As Billions Pour Out of Funds

2011-12-21T06:00:00.000-05:00

Investors Lose Faith in Stocks As Billions Pour Out of Funds
Published: Tuesday, 20 Dec 2011 | 4:50 PM ET

Investors appeared to have lost faith in stocks this year.

Just over a week ago, equity mutual funds globally had the second-biggest one-day outflow of money in 2011, capping four straight weeks of net redemptions, according to data from EPFR Global.

Worldwide, investors have yanked $34 billion out of equity funds this year and put $75 billion into bonds.

In the U.S., stock funds, including both exchange-traded funds and mutual funds, squeaked out a miniscule $4 billion net inflow this year, while fixed income-focused managers collected a monster $86 billion, according to EPFR.

Burned by two bubbles in the last decade and facing the second global financial crisis in three years, investors simply don’t have the risk appetite for stocks.

Investors tried to embrace equities in the first part of the year, but began to pull money out during the summer as the debt ceiling debate domestically flared up and fears of a Greek bailout grew.

http://www.cnbc.com/id/45741694

US asks banks to keep more cash at hand

2011-12-21T05:07:00.000-05:00

US asks banks to keep more cash at hand
Dec 20 03:33 PM US/Eastern

The US Federal Reserve on Tuesday moved to toughen capital requirements for the country's largest banks, saying their size and stretch could threaten the overall financial system.
The Fed said it was preparing to implement new capital and liquidity rules outlined by an international banking pact on nearly three-dozen banks with assets over $50 billion.

Rebuffing resistance from some of the country's most powerful financiers, the Fed said it would apply the extra-tough standards of the Basel III pact on 29 "globally systemically important banks."

That could mean even tougher standards for the eight American banks and bank holding companies on that list: Bank of America, BNY Mellon, Citigroup, Goldman Sachs, JPMorgan Chase, State Street and Wells Fargo.

http://www.breitbart.com/article.php?id=CNG.9d58c31cd5bdcb7896237b12cacad3c9.871&show_article=1

IMF chief warns over 1930s-style threats

2011-12-16T06:10:00.000-05:00

IMF chief warns over 1930s-style threats
By Hugh Carnegy in Paris, George Parker in London and Peter Spiegel in Brussels

The managing director of the International Monetary Fund has warned that the global economy faces the prospect of “economic retraction, rising protectionism, isolation and . . . what happened in the 30s [Depression]”, as European tensions again flared over suggestions in Paris that the UK’s credit rating should be downgraded before France’s.

“There is no economy in the world, whether low-income countries, emerging markets, middle-income countries or super-advanced economies that will be immune to the crisis that we see not only unfolding but escalating,” Christine Lagarde said in a speech at the US state department in Washington. “It is not a crisis that will be resolved by one group of countries taking action. It is going to be hopefully resolved by all countries, all regions, all categories of countries actually taking action.

http://www.ft.com/intl/cms/s/0/169f1364-2746-11e1-864f-00144feabdc0.html#axzz1gh8W3QWe

Euro Skids to 11-Month Low vs Dollar, Fed Weighs

2011-12-14T04:18:00.002-05:00

Euro Skids to 11-Month Low vs Dollar, Fed Weighs
Published: Tuesday, 13 Dec 2011
By: Reuters

The euro dropped to an 11-month low against the dollar Tuesday, weighed down by fears of more rating downgrades in the euro zone, with the greenback supported by reduced expectations of further monetary easing following the Federal Reserve's less pessimistic assessment of the U.S. economy.

http://www.cnbc.com/id/45646153

S&P Puts 15 EU Nations on Negative Credit Watch

2011-12-06T18:00:00.000-05:00

S&P Puts 15 EU Nations on Negative Credit Watch
Published: Monday, 5 Dec 2011 | 4:41 PM ET Text Size
By: AP with CNBC.com

Standard & Poor's put 15 European Union nations on watch for a possible downgrade of their credit ratings as the continent's debt crisis lingers.

The threat to downgrade the euro zone countries — including the ones that enjoy the stellar triple-A-rating — comes ahead of a crucial summit of EU leaders later this week.

The nations include Austria, Belgium, Estonia, Finland, France, Germany, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, the Solvak Republic, Slovenia and Spain.

http://www.cnbc.com/id/45557844

Anxious Greeks Emptying Their Bank Account

2011-12-06T12:50:00.000-05:00

Anxious Greeks Emptying Their Bank Accounts
By Ferry Batzoglou in Athens

Georgios Provopoulos, the governor of the central bank of Greece, is a man of statistics, and they speak a clear language. "In September and October, savings and time deposits fell by a further 13 to 14 billion euros. In the first 10 days of November the decline continued on a large scale," he recently told the economic affairs committee of the Greek parliament.

With disarming honesty, the central banker explained to the lawmakers why the Greek economy isn't managing to recover from a recession that has gone on for three years now: "Our banking system lacks the scope to finance growth."

He means that the outflow of funds from Greek bank accounts has been accelerating rapidly. At the start of 2010, savings and time deposits held by private households in Greece totalled €237.7 billion -- by the end of 2011, they had fallen by €49 billion. Since then, the decline has been gaining momentum. Savings fell by a further €5.4 billion in September and by an estimated €8.5 billion in October -- the biggest monthly outflow of funds since the start of the debt crisis in late 2009.

http://www.spiegel.de/international/europe/0,1518,802051,00.html

Fed, Five Central Banks Cut Dollar Swap Rate

2011-11-30T11:50:00.002-05:00

Fed, Five Central Banks Cut Dollar Swap Rate
By Scott Lanman and Jeff Black - Nov 30, 2011 10:49 AM ET

Six central banks led by the Federal Reserve lowered the cost of emergency dollar funding for financial companies in a global effort to ease Europe’s sovereign-debt crisis.

The new interest rate is the dollar overnight index swap rate plus 50 basis points, a half percentage-point cut, and the program was extended by six months to Feb. 1, 2013, the Fed said today in a statement in Washington. The Fed coordinated the move with the European Central Bank as well as the Bank of Canada, Bank of England, Bank of Japan, and Swiss National Bank. (SNBN)

U.S. and European stocks rallied on the move aimed at easing strains in markets and boosting central banks’ capacity to support the global financial system. The cost for European banks to fund in dollars rose to the highest levels in three years today as concerns about a possible breakup of the euro area increased after leaders said they’d failed to boost the region’s bailout fund as much as planned.

http://www.bloomberg.com/news/2011-11-30/fed-five-central-banks-lower-interest-rate-on-dollar-swaps.html

Businesses plan for possible end of euro

2011-11-30T06:00:00.000-05:00

Businesses plan for possible end of euro
By Tony Barber in London and Daniel Dombey in Istanbul

International companies are preparing contingency plans for a possible break-up of the eurozone, according to interviews with dozens of multinational executives.
Concerned that Europe’s political leaders are failing to control the spreading sovereign debt crisis, business executives say they feel compelled to protect their companies against a crash that can no longer be wished away. When German chancellor Angela Merkel and French president Nicolas Sarkozy raised the prospect of a Greek exit from the eurozone earlier this month, it marked the first time that senior European officials had dared to question the permanence of their 13-year-old experiment with monetary union.

http://www.ft.com/intl/cms/s/0/25ab975a-1a9f-11e1-ae14-00144feabdc0.html#axzz1f8ilpuGc

OECD: euro collapse would have 'highly devastating outcomes' worldwide

2011-11-29T11:19:00.000-05:00

OECD: euro collapse would have 'highly devastating outcomes' worldwide
Chief economist Pier Carlo Padoan scolds hesitancy of European leaders in grave warning on global economic health

The collapse of the euro could send the world's advanced economies into a severe recession, dragging emerging markets with them into the mire, the Organisation for Economic Co-operation and Development warned on Monday.

The Paris-based thinktank slashed its forecast for growth among its 34 members from 2.3% half a year ago to 1.6%, with Europe dramatically downgraded from 2% to just 0.2% because of the unresolved sovereign debt crisis.

http://www.guardian.co.uk/business/2011/nov/28/oecd-eurozone-world-economy-warning

Fitch Keeps U.S. Credit Rating at ‘AAA’, Cuts Outlook to Negative

2011-11-29T06:00:00.000-05:00

Fitch Keeps U.S. Credit Rating at ‘AAA’, Cuts Outlook to Negative

Fitch Ratings kept its pristine AAA rating on the U.S. on Monday, but the credit-ratings company downgraded its outlook to “negative” in the wake of the Supercommittee’s failure to find $1.2 trillion in spending cuts.

The development, which had been hinted at last week, could have been worse for the U.S. as McGraw-Hill’s (MHP: 41.20, +0.66, +1.63%) Standard & Poor’s slashed its credit rating for the first time ever in August.

However, the negative outlook indicates a “slightly greater” than 50% chance that Fitch downgrades the U.S. over the next two years.
“Failure to reach agreement in 2013 on a credible deficit reduction plan and a worsening of the economic and fiscal outlook would likely result in a downgrade of the U.S. sovereign rating,” David Riley, a managing director at Fitch, said in the report.

Read more: http://www.foxbusiness.com/economy/2011/11/28/fitch-keeps-us-credit-rating-at-aaa-cuts-outlook-to-negative/#ixzz1f3wQslkL

Germany, France plan quick new Stability Pact: report

2011-11-28T07:00:00.001-05:00

Germany, France plan quick new Stability Pact: report

(Reuters) - France and Germany are planning a quick new pact on budget discipline that might persuade the European Central Bank to ramp up its government bond purchases, Welt am Sonntag reported on Sunday.

Echoing a Reuters report on Friday from Brussels, the Sunday newspaper said the French and German leaders were prepared to back a deal with other euro countries that might induce the ECB to intervene more forcefully to calm the euro debt crisis.

The newspaper report quoted German government sources as saying that the crisis fighting plan could possibly be announced by German Chancellor Angela Merkel and French President Nicolas Sarkozy in the coming week.

http://www.reuters.com/article/2011/11/27/us-eurozone-integration-ecb-idUSTRE7AQ00F20111127

IMF drawing up £500bn package to save Italy, Spain and the euro

2011-11-28T06:00:00.002-05:00

IMF drawing up £500bn package to save Italy, Spain and the euro
The International Monetary Fund is being lined up potentially to help Italy and Spain amid growing fears that a European rescue scheme will not be able to prop up the countries.

Reports in Italy suggested that the IMF is drawing up plans for a €600 billion (£517 billion) assistance package for the country. Spain may be offered access to IMF credit, rather than a rescue package, to avoid it being “picked off” by the markets in the coming weeks.

http://www.telegraph.co.uk/finance/financialcrisis/8919470/IMF-drawing-up-500bn-package-to-save-Italy-Spain-and-the-euro.html

Britain draws up emergency plans for collapse of Euro after warnings Italy needs £500bn bailout

2011-11-28T05:36:00.002-05:00

Britain draws up emergency plans for collapse of Euro after warnings Italy needs £500bn bailout
Rescue package to give Mario Monti 12 to 18 months' breathing room to implement spending cuts
By JAMES CHAPMAN
Last updated at 8:44 AM on 28th November 2011

Britain is drawing up emergency plans for the collapse of the ‘creaking’ Eurozone amid warnings debt-stricken Italy will need a £500 billion bailout involving billions of pounds of UK taxpayers’ money.

Chancellor George Osborne said the Treasury had ‘stepped up’ contingency planning and aimed to be ready for ‘whatever the Eurozone throws at us’.

It emerged yesterday that the International Monetary Fund, in which Britain is a major shareholder, could be forced to offer Italy a €600 billion (£514bn) rescue package to give its unelected new prime minister Mario Monti 12 to 18 months’ breathing room to implement big tax rises and spending cuts.

http://www.dailymail.co.uk/news/article-2066862/Britain-draws-emergency-plans-collapse-Euro-warnings-Italy-needs-500bn-bailout.html

Banks Build Contingency for Breakup of the Euro

2011-11-27T08:00:00.000-05:00

Banks Build Contingency for Breakup of the Euro

By LIZ ALDERMAN
Published: November 25, 2011

PARIS — For the growing chorus of observers who fear that a breakup of the euro zone might be at hand, Chancellor Angela Merkel of Germany has a pointed rebuke: It’s never going to happen.
Multimedia

But some banks are no longer so sure, especially as the sovereign debt crisis threatened to ensnare Germany itself this week, when investors began to question the nation’s stature as Europe’s main pillar of stability.

On Friday, Standard & Poor’s downgraded Belgium’s credit standing to AA from AA+, saying it might not be able to cut its towering debt load any time soon. Ratings agencies this week cautioned that France could lose its AAA rating if the crisis grew. On Thursday, agencies lowered the ratings of Portugal and Hungary to junk.

http://www.nytimes.com/2011/11/26/business/global/banks-fear-breakup-of-the-euro-zone.html?_r=1&hp

Dow, S&P Log Worst Thanksgiving Week Since 1932

2011-11-26T11:13:00.000-05:00

Dow, S&P Log Worst Thanksgiving Week Since 1932
Published: Friday, 25 Nov 2011 | 1:10 PM ET Text Size
By: JeeYeon Park
CNBC.com Writer

Stocks closed in negative territory in thin, shortened trading Friday as investors were reluctant to go long ahead of the weekend and amid ongoing worries over the euro zone.

The Dow and S&P posted their worst Thanksgiving week since the Great Depression on a percentage basis.

MAJOR U.S. INDEXES

.DJIA11231.78

-25.77-0.23%
.NCOMP2441.51

-18.57-0.75%0
.SPX1158.67

-3.12-0.27%0

The Dow Jones Industrial Average erased their gains to finish lower, led by H-P [HPQ 25.39 -0.39 (-1.51%) ] and Chevron [CVX 92.29 -1.46 (-1.56%) ].

The S&P 500 and the Nasdaq also ended lower, logging a seventh consecutive decline. Some traders are watching for 1,150 on the S&;P as the next key level.

http://www.cnbc.com/id/45435459

"Disastrous" bond sale shakes confidence in Germany

2011-11-23T11:53:00.000-05:00

"Disastrous" bond sale shakes confidence in Germany
by Stephen Brown and Noah Barkin
BERLIN | Wed Nov 23, 2011 10:52am EST

(Reuters) - A "disastrous" German bond sale on Wednesday sparked fears that Europe's debt crisis was even starting to threaten Berlin, with the leaders of the euro zone's two biggest economies still firmly at odds over a longer-term structural solution.

Investors were also unnerved by reports that Belgium is leaning on France to pay more into emergency support for failed lender Dexia under a 90-billion-euro ($120 billion) rescue deal that had appeared done and dusted.

A special report by Fitch Ratings suggested France had limited room left to absorb shocks to its finances like a new downturn in growth or support for banks without endangering its cherished AAA credit status.

After one of the least successful debt sales by Europe's powerhouse economy since the launch of the single currency, the euro fell to 1.336 to the dollar and European shares sank to 7-week lows.

http://www.reuters.com/article/2011/11/23/us-eurozone-idUSTRE7AM0VR20111123

Pimco’s El-Erian Says U.S. Economic Setting ‘Terrifying’

2011-11-22T16:01:00.000-05:00

Pimco’s El-Erian Says U.S. Economic Setting ‘Terrifying’
By Cordell Eddings and Betty Liu - Nov 22, 2011 12:20 PM ET

Pacific Investment Management Co.’s Chief Executive Officer Mohamed A. El-Erian said U.S. economic conditions are “terrifying” as the nation struggles to recover from recession.

The odds of the U.S. returning to recession are as high as 50 percent, El-Erian said during an interview on Bloomberg Television’s “In the Loop” with Betty Liu. U.S. economic growth was worse than expected and congressional policy makers are gridlocked over what to do about the economy and the deficit, which risk exacerbating an already weak recovery, he said.

“We have less economic momentum than we thought we had and we have no policy momentum,” said El-Erian, who also serves as co-chief investment officer with Pimco founder Bill Gross at the world’s largest manager of bond funds.

http://www.bloomberg.com/news/2011-11-22/pimco-s-el-erian-says-u-s-economic-situation-terrifying-as-growth-slows.html

Stocks End Sharply Lower Amid Debt Fears

2011-11-21T19:09:00.002-05:00

Stocks End Sharply Lower Amid Debt Fears
Published: Monday, 21 Nov 2011 | 4:05 PM ET Text Size
By: Jeff Cox
CNBC.com Senior Writer

Worries over debt in both the U.S. and Europe overcame Wall Street on Monday, sending stocks into a tailspin as investors flocked for the exits ahead of the Thanksgiving holiday.

Though considerably off the worst levels of the day, the selloff was still good enough to take 2 percent off the Dow industrials and nearly as much from the Standard & Poor's 500 and the Nasdaq.

Financials and industrials were the big losers of the day, with traders worried that mandated spending cuts that come with the failure of the congressional debt supercommittee to reach a deal will eradicate the nascent economic recovery.

http://www.cnbc.com/id/45385447

Supercommittee failure could trigger US credit downgrade, economists warn

2011-11-21T06:00:00.001-05:00

Supercommittee failure could trigger US credit downgrade, economists warn

Economists predict dire consequences if committee fails to reach agreement on how to reduce America's massive debt

Economists are warning of dire consequences if US politicians fail to make progress this weekend in tense talks aimed at reducing America's massive deficit ahead of a Wednesday deadline.

The bi-partisan congressional super-committee is charged with drawing up plans for a $1.2tn reduction in the nation's deficit by the middle of next week. Failure to do so will trigger an automatic "sequester" that will make cuts of that size to defence and social welfare programmes starting in 2013. But the two sides seem far from finding a solution after clashing over tax revenues.

While Wednesday is the official deadline for the supercommittee to report back, it has until Monday to tell the Congressional Budget Office about the impact any plan they send to Congress will have on the budget.

http://www.guardian.co.uk/world/2011/nov/18/supercommittee-failure-credit-downgrade-warning

U.S. Banks Face Serious Risk From Europe: Fitch

2011-11-17T06:00:00.000-05:00

U.S. Banks Face Serious Risk From Europe: Fitch
By Dakin Campbell - Nov 16, 2011 4:44 PM ET

U.S. banks face a “serious risk” that their creditworthiness will deteriorate if Europe’s debt crisis worsens, Fitch Ratings said.

“Fitch believes that unless the euro zone debt crisis is resolved in a timely and orderly manner, the broad credit outlook for the U.S. banking industry could worsen,” the New York-based rating company said today in a statement.

Banks in the U.S. have manageable exposure tied to stressed European markets in Greece, Ireland, Italy, Portugal and Spain, “but further contagion poses a serious risk,” Fitch said. Gross exposures to larger European countries and major banks are greater than those of the five stressed countries, the rating firm said. It didn’t explain what it meant by contagion.

http://www.bloomberg.com/news/2011-11-16/banks-in-u-s-facing-serious-risk-on-contagion-from-europe-fitch-says.html

Blair warns of 'catastrophe' if euro collapses

2011-11-14T05:16:00.000-05:00

Blair warns of 'catastrophe' if euro collapses
Nov 13 09:17 AM US/Eastern

Former British prime minister Tony Blair warned on Sunday that the collapse of the euro would be "catastrophic" and urged Europe to move fast to support the currency.
Blair said European leaders faced "very difficult and painful" choices and a "long-term framework of credibility" was needed to see off the crisis.

Speaking following the resignation of Italian Prime Minister Silvio Berlusconi on Saturday, Blair said there had "never been a tougher time to be a leader than right now".

But he said the "whole weight" of European institutions -- including the European Central Bank -- must get behind the euro if it was to survive.

He told BBC TV that economies had to align and that "the myth that the Italian and German economies were the same -- that 10-year myth has now evaporated".

Measures required to bring stability to the euro would be painful, he warned, but added: "If the single currency broke up, it would be catastrophic."

http://www.breitbart.com/article.php?id=CNG.fd0f0c2cc1dd8cdffbe8bbb9258642a2.b31&show_article=1

Jim Cramer: In 31 Years I've Never Seen Markets This Crazy

2011-11-11T06:00:00.001-05:00

Jim Cramer: In 31 Years I've Never Seen Markets This Crazy

Jim Cramer has come to only one conclusion about markets today: "No one knows what the heck he or she is doing." Not hedge funders, not bankers... no one.
Things sure have changed over the years.
In the past week, he's noted 6 weird happenings that show the market is totally out of whack

Read more: http://tinyurl.com/7da5kx9

European debt crisis spiralling out of control

2011-11-10T07:00:00.001-05:00

European debt crisis spiralling out of control

Reports that Germany and France have begun talks to break up the eurozone amid fears that Italy will be too big to rescue

Fears that Europe's sovereign debt crisis was spiralling out of control have intensified as political chaos in Athens and Rome, and looming recession, created panic on world markets.

Reports emerging from Brussels said that Germany and France had begun preliminary talks on a break-up of the eurozone, amid fears that Italy will be too big to rescue.

Despite Silvio Berlusconi's announcement that he would step down as prime minister once austerity measures were pushed through parliament, a collapse of investor confidence in Europe's third-biggest economy sent interest rates in Italy to the levels that triggered bailouts in Portugal, Greece and Ireland.

http://www.guardian.co.uk/business/2011/nov/09/european-debt-crisis-eurozone-breakup

Milton Friedman - Greed

2011-11-10T07:00:00.000-05:00

Milton Friedman - Greed

Dow Plunges 3.2% on Fears That Euro Crisis Spreading

2011-11-09T18:41:00.000-05:00

Dow Plunges 3.2% on Fears That Euro Crisis Spreading
Wednesday, 09 Nov 2011 09:58 AM

Trouble on two fronts in Europe's debt crisis dragged the Dow Jones Industrial Average down 389 points Wednesday. The S&P 500 lost 3.7 percent, its biggest one-day drop since August, after Italy's borrowing costs soared and talks collapsed in Greece on forming a new government.

The euro dropped 2 percent against the dollar and Treasury yields sank as money moved out of Europe and traders bought U.S. government bonds. Goldman Sachs, Morgan Stanley and other large banks were hit hard on worries over their ability to handle a financial crisis that might be brought on by trouble in Europe.

Read more: http://www.moneynews.com/StreetTalk/Dow-Plunges-Fears-Italy/2011/11/09/id/417393?s=al&promo_code=D7A6-1

Fannie Mae taps $7.8 billion from Treasury, loss widens

2011-11-09T06:54:00.001-05:00

Fannie Mae taps $7.8 billion from Treasury, loss widens
By Margaret Chadbourn
WASHINGTON | Tue Nov 8, 2011 7:29pm EST

(Reuters) - Fannie Mae, the biggest source of money for U.S. home loans, on Tuesday said it needed a further $7.8 billion in federal aid to stay afloat as a shaky housing market widened its third-quarter loss to $5.1 billion.

The government-controlled firm also attributed the deeper cash drain to losses on derivatives used to hedge its exposure to interest-rate swings and on expenses related to home loans made prior to the 2008 financial collapse. In the year-earlier quarter it had a loss of a $1.3 billion.

Fannie Mae has now drawn $112.6 billion in bailout funds from the Treasury Department since being seized by the government in 2008 as mortgage losses mounted, and it has returned $17.2 billion to taxpayers in the form of dividends.

"There is certainly a lot of pre-2009 loans that we need to work through and that is certainly driving the credit losses you saw in this quarter and over the last several years," Fannie Mae Chief Financial Officer Susan McFarland told Reuters.

http://www.reuters.com/article/2011/11/09/us-usa-housing-fanniemae-idUSTRE7A77F420111109?feedType=RSS&feedName=businessNews&rpc=23&sp=true

Italy: Too Big to Fail, Too Big to Save?

2011-11-07T09:22:00.003-05:00

Italy: Too Big to Fail, Too Big to Save?
Published: Monday, 7 Nov 2011 | 2:54 AM ET Text Size
By: Catherine Boyle
Staff Writer, CNBC.com

Italy's economic problems took center stage Monday as its government, led by increasingly threatened Prime Minister Silvio Berlusconi, faced yet another key vote.

The health of the euro zone's third-largest economy has come into focus despite Berlusconi accepting IMF monitoring and surviving several confidence votes in recent months.

Italy's size makes the potential consequences if it were to fail more wide-ranging than the much smaller Greece.

"Italy has much more systemic implications," Thanos Vamvakidis, Head of European G10 FX Strategy, BofA Merrill Lynch Global Research, told CNBC Monday.

"It's too big to fail, too big to save."

http://www.cnbc.com/id/45187059

Jobs Report: 'Things Are So Bad That This Looks Good'

2011-11-04T14:27:00.000-04:00

Jobs Report: 'Things Are So Bad That This Looks Good'
Published: Friday, 4 Nov 2011 | 11:42 AM ET
By: Patti Domm
CNBC Executive News Editor

October's employment reports showed continued sluggish job growth, but positive revisions for earlier months takes away some of the sting and reaffirms the economy is growing.

The government reported 80,000 total jobs were added in October. There were 104,000 private sector positions added in professional and business services, leisure and hospitality, health care and mining, and 24,000 government jobs were lost.

The unemployment rate fell slightly to 9 percent from 9.1 percent in September.

"We have to remind ourselves that things are so bad that this looks good. In the context of what we're living through, it's not a bad report," said Dan Greenhaus, global market strategist at BTIG.

http://www.cnbc.com/id/45164551

Greece risks meltdown after bailout vote bombshell

2011-11-02T06:00:00.001-04:00

Greece risks meltdown after bailout vote bombshell
By Dina Kyriakidou and Lefteris Papadimas | Reuters – 22 minutes ag

ATHENS (Reuters) - The Greek government faced possible collapse on Tuesday as ruling party lawmakers demanded Prime Minister George Papandreou resign for throwing the nation's euro membership into jeopardy with a shock call for a referendum.

Caught unawares by his high-stakes gamble, the leaders of France and Germany summoned Papandreou to crisis talks in Cannes on Wednesday to push for a quick implementation of Greece's new bailout deal ahead of a summit of the G20 major world economies.

The euro and global stocks were pummeled on financial markets after the Greek move threw into question the survival of crucial efforts to contain the euro zone's sovereign debt crisis.

Six senior members of Greece's ruling PASOK socialists, angered by his decision to call a plebiscite on the 130 billion euro rescue package agreed only last week, said Papandreou should make way for a "politically legitimate" administration.

http://ca.news.yahoo.com/greek-referendum-threatens-euro-zone-crisis-021206836.html

Euro crisis 'could lead to social unrest'

2011-11-01T06:00:00.001-04:00

Euro crisis 'could lead to social unrest'
Oct 30 07:24 AM US/Eastern

The eurozone debt crisis could lead to a decade-long recession and rising social unrest, the International Labour Organisation (ILO) has warned, according to a German media report on Sunday.

"The next few months will be decisive in terms of avoiding a dramatic decline in employment and a further sharp increase in social unrest," news weekly Focus reported, citing the ILO's new annual report on the labour market.

Without counter-measures, the crisis might unleash a recession that could last a decade, as governments find themselves powerless to act due to pressure to reduce their debts, Focus said, citing the ILO document.

The ILO was not immediately available for comment.

The greatest risk of social unrest exists in Greece, Portugal, Spain, Estonia, France, Slovenia and Ireland, according to the weekly.

http://www.breitbart.com/article.php?id=CNG.da3f6e58764d826ac0b9ee28d0e73a75.511&show_article=1

Why the latest eurozone bail-out is destined to fail within weeks

2011-10-31T14:50:00.000-04:00

Why the latest eurozone bail-out is destined to fail within weeks

I want last week's European bail-out to work. My sincere hope is that collective and decisive action by the eurozone's large member states will stabilize global markets, at least for a while, so allowing the global economy to catch its breath.

http://www.telegraph.co.uk/finance/comment/liamhalligan/8857518/Why-the-latest-eurozone-bail-out-is-destined-to-fail-within-weeks.html

S&P sees downgrade blitz in EMU recession, threatening crisis strategy

2011-10-21T06:06:00.000-04:00

S&P sees downgrade blitz in EMU recession, threatening crisis strategy
By Ambrose Evans-Pritchard

Standard & Poor's (S&P) is to warn that a double-dip recession in Europe would imperil France's AAA rating and set off a string of downgrades across Southern Europe, undermining the EU's debt crisis strategy.

The EU-IMF bail-out machinery would require an extra €250bn or more to stabilize eurozone debt markets, forcing Germany and EU's creditor states to vastly increase rescue commitments.

The report, due Friday, said a double-dip recession would lead to a downgrade of "one or two notches" for France, Spain, Italy, Ireland and Portugal, both because of tumbling tax revenues and the extra costs of propping up banks.

The scenario looks increasingly likely after Germany slashed its growth forecast from 1.8pc to 1pc for 2012. Greece and Portugal are contracting at alarming speeds. Italy and Spain are already in industrial recession.

http://www.telegraph.co.uk/finance/financialcrisis/8839972/SandP-sees-downgrade-blitz-in-EMU-recession-threatening-crisis-strategy.html

Washington Policy Wonks need to look no further than recent History of 1990 Japan for answers.

2011-10-20T14:42:00.000-04:00

Washington Policy Wonks need to look no further than recent History of 1990 Japan for answers.
one small voice

Policy experts continue to be stymied by their inability to get the economy moving again .A look at recent history would suggest that both the talking heads and Washington policy wonks should know better and be better served if they took a look at the failings of Japan in the 1990's.

In the not too distant past Japan was faced with many of the same issues caused by collapsing property and stock markets,leaving Japanese banks upside down on much of the nations collateral. Japan's once invincible economy ran aground with similar policy missteps that our current policy makers are making .

First Japan embarked on printing money and zero interest rates to accelerate demand ,but this is like pushing on a string. It failed in the 1990's for Japan and in reality did nothing to effect the supply and demand curve. This priming the pump or inflating your way to prosperity has historically proven to have dangerous consequences such as run away inflation and in the worst case could lead to a currency collapse.

At the same time both Japan in the 90's and the US government today have engaged in a massive buildup of regulation for both personal and business behavior with the net effect being to suffocate business initiative.

Both countries engaged in wrong headed Government "Stimulus" plans that never work , I repeat NEVER. Most of the stimulus money is wasted or lands in the hands of public unions with little or no job creation. Again Japan in the 1990's embarked on the same foolishness with a huge capital investment plan for infrastructure .Like the fool hearty promotion of alternative energy in the US today where at the end of the day much of the money was wasted ,taxes have to be raised to cover the debt which further suppresses economic growth.

Japanese banks simple hid there loses and in many cases have yet to recognize the depreciated collateral.The US has similar issues with the destruction of the credit markets, the 2000 stealth stock market crash and the inability for the government to offer any reliable economic statistics. There is a consistent theme of not facing the reality of the current economic situation.

Finally for both countries their constant central and state government tweaking or interference with the economy and its unintended consequences have created so much uncertainty that they have virtually stifled business decision making.

The current period of economic decline will not end until more substantive pro-growth policy's are enacted ,such as deregulation, shrinking the size and scope of government ,paying down debt and lowering taxes. It is just that simple.

View: China’s Currency Distracts From U.S.’s Policy Failings

2011-10-18T11:05:00.002-04:00

View: China’s Currency Distracts From U.S.’s Policy Failings

Republican presidential candidate Mitt Romney says that on “Day One” in office he would declare China a currency manipulator. So it’s safe to assume that were he president, he would sign the bill that passed the Democratic- controlled Senate last week to impose sanctions on China if it doesn’t free the yuan to appreciate against the dollar.

House Speaker John Boehner has said he will try to prevent a vote on the currency measure. We hope he succeeds. It’s unfortunate that the temptation to blame other countries for America’s self-inflicted woes is gaining bipartisan support.

Let’s be clear: We don’t favor China’s policy of keeping the yuan artificially weak, and thus making its exports cheaper. But blaming the U.S.’s sluggish economy on China’s currency policy is a diversion from more fundamental problems: the inability of political leaders to revive the economy in the short term (by helping homeowners with “underwater” mortgages, by investing in infrastructure and by providing tax incentives for employers to increase hiring), and in the long term with a budget-balancing plan.

http://www.bloomberg.com/news/2011-10-18/china-s-currency-serves-as-distraction-from-u-s-s-policy-failings-view.html

Doctor Doom :Economist Nouriel Roubini's Firm Is For Sale

2011-10-13T08:53:00.000-04:00

Doctor Doom :Economist Nouriel Roubini's Firm Is For Sale
Published: Tuesday, 11 Oct 2011 | 12:26 PM ET
By: David Faber
CNBC Anchor and Reporte

Roubini Global Economics, the economics research firm begun by noted economist Nouriel Roubini, is for sale, according to sources who have been approached by an investment bank conducting an auction for the firm.

RGE, as it's known, has grown quickly since its founding by Roubini, who is its chairman. It has over 85 employees, and is still losing money.

According to people who have seen the offering book for the sale, the firm is projected to have revenues of $14 million this year and it will post a loss of roughly $2 million dollars, and projects eight percent revenue growth into next year followed by 40 percent revenue .

http://www.cnbc.com/id/44859944

‘Time short’ for eurozone, says Cameron

2011-10-10T05:00:00.000-04:00

‘Time short’ for eurozone, says Cameron
By George Parker and Lionel Barber

David Cameron has urged European leaders to take a “big bazooka” approach to resolving the eurozone crisis, warning they have just a matter of weeks to avert economic disaster.

The UK prime minister wants France and Germany to bury their differences and to adopt before the end of the year what he claims would be a decisive five-point plan to end the uncertainty, which was having a “chilling effect” on the world economy.

Meanwhile, on Sunday, Angela Merkel, the German chancellor, and France’s President Nicolas Sarkozy spelt out their determination to defend the stability of the euro as they met for a bilateral summit in Berlin, though they refused to spell out details of their plans.

http://www.ft.com/intl/cms/s/0/bd7d2ed0-f26e-11e0-824e-00144feab49a.html#axzz1aK5umUz2

Soros fails to quash insider trading conviction

2011-10-07T06:00:00.000-04:00

Soros fails to quash insider trading conviction
By Sam Jones in London and Stanley Pignal in Brussels

George Soros, the billionaire hedge fund manager, has lost a case at the European Court of Human Rights to have his criminal conviction for insider dealing quashed.

The failed appeal in a 4-3 decision by the Strasbourg-based court is the latest twist in a nine-year battle by the 81-year-old Mr Soros to clear his name following his conviction in France in 2002.

The French criminal case hinged on trades that the Hungary-born investor had executed 14 years earlier in the stock of Société Générale that reaped his hedge fund, the Quantum Fund, $2.9m in profits.

Mr Soros was found by the court in 2002 to have had inside knowledge about the intentions of a group of super-wealthy French investors – the “golden granddads” – to bid for the bank.

http://www.ft.com/intl/cms/s/0/063501c2-f02e-11e0-977b-00144feab49a.html#axzz1a5LT8q5O

World facing worst financial crisis in history, Bank of England Governor says

2011-10-07T04:47:00.001-04:00

World facing worst financial crisis in history, Bank of England Governor says
By James Kirkup10:00PM BST 06 Oct 2011

The world is facing the worst financial crisis since at least the 1930s “if not ever”, the Governor of the Bank of England said last night.

Sir Mervyn King was speaking after the decision by the Bank’s Monetary Policy Committee to put £75billion of newly created money into the economy in a desperate effort to stave off a new credit crisis and a UK recession.

Economists said the Bank’s decision to resume its quantitative easing [QE], or asset purchase programme, showed it was increasingly fearful for the economy, and predicted more such moves ahead.

http://www.telegraph.co.uk/finance/financialcrisis/8812260/World-facing-worst-financial-crisis-in-history-Bank-of-England-Governor-says.html

China warns of trade war if U.S. bill passes

2011-10-05T05:09:00.002-04:00

China warns of trade war if U.S. bill passes

* Beijing accuses U.S. senate of "politicising" trade issues

* Warns of trade war, says bill would violate WTO rules

* Forcing the yuan higher would damage world recovery

* Says bill will not address underlying economic problems (Adds analyst quote, Xinhua commentary, links)

By David Stanway and Aileen Wang

BEIJING, Oct 4 (Reuters) - An angry China warned Washington on Tuesday that passage of a bill aimed at forcing Beijing to let its currency rise could lead to a trade war between the world's top two economies.

http://www.reuters.com/article/2011/10/04/usa-china-idUSL3E7L40IA20111004

Greece Falls Into 'Death Spiral': Rising Debt, No Growth

2011-10-04T06:00:00.001-04:00

Greece Falls Into 'Death Spiral': Rising Debt, No Growth
Published: Monday, 3 Oct 2011
By: Reuters

Drowning in red ink, Greece has nowhere to turn to revive the economic growth that might put its debt on a sustainable trajectory, reassure angry foreign creditors and offer hope to its recession-weary citizens

Instead, the country finds itself in a vicious circle—a death spiral, some would say—in which it is borrowing ever more to keep up on its existing debts, crushing growth in the process and thereby worsening its all-important ratio of debt-to-gross domestic product.

http://www.cnbc.com/id/44758520

Germany 'won't give more to EU bail-out fund'

2011-10-03T06:00:00.000-04:00

Germany 'won't give more to EU bail-out fund'

AFP - German Finance Minister Wolfgang Schaeuble ruled out Germany contributing any more money to the beefed-up EU bail-out fund than the 211 billion euros approved by parliament, in an interview published Saturday.

"The European Financial Stability Facility has a ceiling of 440 billion euros ($590 billion), 211 billion of which is down to Germany. And that is it. Finished," he told the magazine Super-Illu.

He also suggested the European Stability Mechanism, which is due to replace the EFSF by 2013 at the latest, would be smaller.

http://www.france24.com/en/20111001-germany-wont-give-more-eu-bail-out-fund

I am glad someone finally said it : Germany slams 'stupid' US plans to boost EU rescue fund

2011-09-28T08:00:00.001-04:00

I am glad someone finally said it : Germany slams 'stupid' US plans to boost EU rescue fund

Germany and America were on a collision course on Tuesday night over the handling of Europe's debt crisis after Berlin savaged plans to boost the EU rescue fund as a "stupid idea" and told the White House to sort out its own mess before giving gratuitous advice to others.

http://www.telegraph.co.uk/finance/financialcrisis/8793010/Germany-slams-stupid-US-plans-to-boost-EU-rescue-fund.html

US becoming a less friendly business environment than China

2011-09-28T06:00:00.001-04:00

US becoming a less friendly business environment than China
By Alan Rappeport in New York

Coca-Cola now sees the US becoming a less friendly business environment than China, its chief executive has revealed, citing political gridlock and an antiquated tax structure as reasons its home market has become less competitive.

Muhtar Kent, Coke’s chief executive, said “in many respects” it was easier doing business in China, which he likened to a well-managed company. “You have a one-stop shop in terms of the Chinese foreign investment agency and local governments are fighting for investment with each other,” he told the Financial Times.

http://www.ft.com/intl/cms/s/0/071f902c-e636-11e0-960c-00144feabdc0.html#axzz1Z9sXNRz1

RARE Friedman Footage - On Keys to Reagan and Thatcher's Success

2011-09-27T13:34:00.002-04:00

RARE Friedman Footage - On Keys to Reagan and Thatcher's Success

Geithner :$200K Per Job ,White House Jobs Plan Is Still a Bargain

2011-09-27T07:35:00.000-04:00

Geithner :$200K Per Job ,White House Jobs Plan Is Still a Bargain

By BEN FORER
Sept. 26, 2011

Treasury Secretary Timothy Geithner didn't dispute a Harvard economist's estimate that each job in the White House's jobs plan would cost $200,000, but said the pricetag is the wrong way to measure the bill's worth.

And he also pointed out, in an interview today with ABC News' David Muir, that there is no other option on the table for getting the economy moving and putting more people back to work.

"You've got to think about the costs of the alternatives," Geithner said when asked about Harvard economist Martin Feldstein's calculation that each job created by President Obama's American Jobs Act would cost taxpayers about $200,000.

http://abcnews.go.com/Business/Economy/geithner-good-chance-jobs-act-pass/story?id=14609951

PAY BACK TIME : SEC May Recommend Legal Action Against S&P

2011-09-27T07:21:00.000-04:00

PAY BACK TIME : SEC May Recommend Legal Action Against S&P

The staff of the Securities and Exchange Commission is considering recommending civil legal action against the Standard & Poor's debt ratings agency over its rating of a 2007 collateralized debt offering

Collateralized debt obligations , also known as CDOs, are securities tied to multiple underlying mortgage loans. The CDO generally gains value if borrowers repay. But if borrowers default, CDO investors lose money. Soured CDOs have been blamed for making the 2008 financial crisis worse. Ratings agencies have been accused of being lax in rating CDOs.

The SEC staff said it may recommend that the commission seek civil money penalties, disgorgement of fees or other actions.

http://www.cnbc.com/id/44668294

Now the IMF Needs A Bailout

2011-09-26T07:00:00.000-04:00

Christine Lagarde: IMF may need billions in extra funding
Louise Armitstead and Jonathan Russell8:04PM BST 25 Sep 2011

Christine Lagarde has signalled that the International Monetary Fund (IMF) may have to tap its members – including Britain – for billions of pounds of extra funding to stem the European debt crisis.

The head of the IMF has warned that its $384bn (£248bn) war chest designed as an emergency bail-out fund is inadequate to deliver the scale of the support required by troubled states.

In a document distributed to the IMF steering committee at the weekend, Ms Lagarde said: "The fund's credibility, and hence effectiveness, rests on its perceived capacity to cope with worst-casescenarios. Our lending capacity of almost $400bn looks comfortable today, but pales in comparison with the potential financing needs of vulnerable countries and crisis bystanders."

http://www.telegraph.co.uk/finance/financialcrisis/8788223/Christine-Lagarde-IMF-may-need-billions-in-extra-funding.html

Global economy pushed to the brink

2011-09-24T08:00:00.001-04:00

Global economy pushed to the brink
By Chris Giles and Alan Beattie in Washington, Michael Mackenzie in New York and Richard Milne

Time is running out to find a solution to the eurozone crisis and prevent another global recession, finance ministers warned on Friday, as they hinted that discussions were under way to boost the firepower of European rescue funds.

Financial markets experienced another day of intense volatility as investors struggled to interpret an emergency statement from the Group of 20 leading economies, which met on the sidelines of the International Monetary Fund and World Bank meetings in Washington.

Investors were initially unimpressed by the G20’s message of support for the global economy, but several said they did not want to get caught out should policymakers unexpectedly decide on a radical policy response.

http://www.ft.com/intl/cms/s/0/9bedaa82-e603-11e0-960c-00144feabdc0.html#axzz1Yoh6JDc0

Warnings mount on euro crisis, BRICS mull more aid

2011-09-23T07:43:00.000-04:00

Warnings mount on euro crisis, BRICS mull more aid
By David Lawder and Walter Brandimarte

WASHINGTON - World leaders and finance chiefs pushed Europe to quell its debt crisis and big emerging economies said they might provide more money to help stop the chaos from spreading.

As finance ministers and central bankers gathered for talks amid growing concern about sharply slowing growth and plunging stock markets, the leaders of seven big economies stressed the need to contain the euro zone crisis.

"Euro zone governments and institutions must act swiftly to resolve the euro crisis and all European economies must confront the debt overhang to prevent contagion to the wider global economy," the leaders of Australia, Canada, Indonesia, Britain, Mexico, South Africa and South Korea wrote in an open letter to France, chair of the Group of 20 leading economies.

http://www.gmanews.tv/story/233185/business/warnings-mount-on-euro-crisis-brics-mull-more-aid

Warren Buffett to host fundraiser for Obama in Chicago

2011-09-22T06:07:00.000-04:00

Warren Buffett to host fundraiser for Obama in Chicago

Billionaire U.S. investor Warren Buffett will help raise money for President Barack Obama's re-election effort at a $35,800-a-ticket fundraiser next month in Chicago, an Obama campaign official said on Wednesday.

Buffett will attend the Oct. 27 event at a private home on Chicago's North Shore that is expected to include major donors to Obama's 2008 presidential run. The Democratic president, who is not expected to attend, is running for re-election in 2012.

http://www.chicagotribune.com/business/breaking/chi-warrent-buffett-to-host-fundraiser-for-obama-in-chicago-20110921,0,2294.story

Moody's downgrades big banks on changed policy

2011-09-22T05:48:00.002-04:00

Moody's downgrades big banks on changed policy
By Joe Rauch and David Henry
Wed Sep 21, 2011 6:05pm EDT

(Reuters) - Moody's Investors Service lowered debt ratings for Bank of America Corp, Citigroup Inc and Wells Fargo & Co on Wednesday, saying the U.S. government is getting less comfortable with bailing out large troubled lenders.

The government is "more likely now than during the financial crisis to allow a large bank to fail should it become financially troubled," said the rating agency, a unit of Moody's Corp.

"This is crystallizing the fact we're in a new political reality," said Jason Ware, equity analyst with Salt Lake City-based Albion Financial Group.

Moody's decision hit Bank of America hardest, as it downgraded the long- and short-term debt of the holding company and long-term deposits at its main banking unit.

http://www.reuters.com/article/2011/09/21/us-bankofamerica-downgrade-idUSTRE78K4P020110921

IMF: World economy enters 'dangerous new phase'

2011-09-20T11:02:00.001-04:00

IMF: World economy enters 'dangerous new phase'
IMF says global economy in 'dangerous new phase,' slashes growth forecasts for US and Europe

WASHINGTON (AP) -- The world economy has entered a "dangerous new phase," according to the chief economist of the International Monetary Fund. As a result, the international lending organization has sharply downgraded its economic outlook for the United States and Europe through the end of next year.
The IMF expects the U.S. economy to grow just 1.5 percent this year and 1.8 percent in 2012. That's down from its June forecast of 2.5 percent in 2011 and 2.7 percent next year.

To achieve even that still-low level of growth, the U.S. economy would need to expand at a much faster rate in the second half of the year than its 0.7 percent annual pace in the first six months.

Most economists expect growth of between 1.5 percent and 2 percent in the final two quarters. Though an improvement, it wouldn't be enough to lower the unemployment rate. The rate has been 9 percent or higher in all but two months since the recession officially ended more than two years ago.

http://finance.yahoo.com/news/IMF-downgrades-outlook-for-US-apf-1240337037.html?x=0

Europe digs ever deeper debt hole

2011-09-19T07:00:00.002-04:00

Europe digs ever deeper debt hole

Europe is digging an ever-deeper hole as it vows to resolve the eurozone crisis, experts said on Sunday as Greece readies for a pivotal week of international debt diplomacy.

"The otherwise fractious European Union leaders have united in their criticism of the markets, the IMF and now (US Treasury Secretary) Tim Geithner -- for being honest about the scale of problems facing the eurozone," Sony Kapoor, head of the Re-define think tank, told AFP.

En route to New York and a frantic week at International Monetary Fund, World Bank and G20 gatherings, he said "kill the messenger seems to be the new strategy" for an EU "plagued by parochialism, pettiness and procrastination."

"This does not bode well for the ability of EU leaders to respond to the big and urgent challenge posed by the unsustainable borrowing costs facing Italy," the eurozone's third economy, he said.

http://www.breitbart.com/article.php?id=CNG.254c8b8888103d7fe30af54d26e4868f.511&show_article=1

“If the euro fails, then Europe fails.”

2011-09-19T06:00:00.000-04:00

As Europe’s leaders pledge support for the single currency, the talk among some is of default. An outline of the possible outcomes

“If the euro fails, then Europe fails.”

Angela Merkel’s staunch defence of the single currency, made in the Bundestag this month, is widely shared by other European leaders. The German chancellor’s sentiment demonstrates the political will not to let Europe’s sovereign debt crisis undermine the single currency.

So long as this level of political capital is invested in the euro, monetary union is highly likely to survive. However, the talk among investors and some European politicians this week has been of Greek default. The graphic below outlines the likely consequences of a default by Greece. It is a description, not a prediction – a description that includes the possibility of the break-up of the eurozone, though even in the event of Greek default that outcome is far from inevitable.

http://www.ft.com/intl/cms/s/0/80094624-e076-11e0-bd01-00144feabdc0.html#axzz1YK4JXXF3

Geithner warns EU of ‘catastrophic risk’

2011-09-16T20:14:00.001-04:00

Geithner warns EU of ‘catastrophic risk’
By Joshua Chaffin and Alex Barker in Wroclaw and Kerin Hope in Athens

The US Treasury secretary told Europe’s leaders to stop bickering and take control of the debt crisis that has brought “catastrophic risk” to financial markets.

In a blunt warning that reflected Washington’s growing concern, Timothy Geithner urged European leaders to halt a months-long clash with the European Central Bank and argued that the EU’s growing reliance on foreign lenders would imperil the bloc’s ability to control its own destiny.

“What is very damaging [in Europe] from the outside is not the divisiveness about the broader debate, about strategy, but about the ongoing conflict between governments and the central bank, and you need both to work together to do what is essential to the resolution of any crisis,” Mr Geithner said on the sidelines of a meeting of eurozone finance ministers in Wroclaw, Poland on Friday.

http://www.ft.com/intl/cms/s/0/6006de50-e061-11e0-ba12-00144feabdc0.html#axzz1Y7YSoLeW

Europe's debt crisis prompts central banks to provide dollar liquidity

2011-09-16T10:00:00.001-04:00

Europe's debt crisis prompts central banks to provide dollar liquidity
European and US stocks surge on news that world banks will flood markets – but Lagarde warns of 'dangerous' new phase

Larry Elliott, economics editor and Dominic Rushe in New York
guardian.co.uk, Thursday 15 September 2011 16.12 EDT

Fears of a deepening of Europe's debt crisis have prompted the world's leading central banks to pump US dollars into the financial system, in a co-ordinated action designed to boost market confidence.

The Bank of England joined the US Federal Reserve, the European Central Bank, the Swiss National Bank and the Bank of Japan on Thursday to announce that they would flood money markets with dollars over the coming months.

The move, on the third anniversary of the collapse of the US investment bank Lehman Brothers, sent shares soaring in banks heavily exposed to debt default by Greece and the other struggling members of the 17-nation eurozone. The euro, which had been falling in recent days, rebounded, rising roughly 1% in European trading on Thursday.

http://www.guardian.co.uk/business/2011/sep/15/world-banks-flood-markets-with-dollars

IMF threatens to withhold Greek loan

2011-09-16T09:15:00.003-04:00

IMF threatens to withhold Greek loan
By Peter Spiegel in Brussels, Alan Beattie in Washington and Joshua Chaffin in Wroclaw, Poland

Christine Lagarde, head of the International Monetary Fund, on Thursday raised the spectre of her organisation withholding its portion of an €8bn ($11bn) aid payment Greece needs by the end of this month, saying Athens had implemented requisite economic reforms “in parts”.

Speaking ahead of a highly anticipated meeting of IMF, US and European finance officials in Poland, Ms Lagarde said Athens had to re-ignite “the urge to deliver on commitments” made by its government after a period during which “momentum had slowed down”.

http://www.ft.com/intl/cms/s/0/b6ded476-dfb2-11e0-8e15-00144feabdc0.html#axzz1Y7YSoLeW

JPMorgan chief says bank rules ‘anti-US’

2011-09-12T07:00:00.001-04:00

JPMorgan chief says bank rules ‘anti-US’
By Tom Braithwaite in New York and Patrick Jenkins in London
Published: September 12 2011 00:01

New international bank capital rules are “anti-American” and the US should consider pulling out of the Basel group of global regulators, Jamie Dimon, chief executive of JPMorgan Chase, has said.

In an interview with the Financial Times, Mr Dimon said he was supportive of forcing banks to have more capital but argued that moves to impose an additional charge on the largest global banks went too far, particularly for American banks.

http://www.ft.com/intl/cms/s/0/905aeb88-dc50-11e0-8654-00144feabdc0.html#axzz1Xhbiq27s

UBS: Euro Can't Survive, Demise to Spark Chaos

2011-09-08T08:00:00.000-04:00

UBS: Euro Can't Survive, Demise to Spark Chaos
Wednesday, 07 Sep 2011 12:39 PM
By Forrest Jones

The euro cannot exist in its current state, and with its demise authoritarianism and possibly civil war could consume parts of Europe, global financial giant UBS writes in a report.

"Under the current structure and with the current membership, the euro does not work. Either the current structure will have to change, or the current membership will have to change," UBS says in the report, according to Zero Hedge.

The currency has been embattled by debt crises in peripheral countries like Greece and Italy and threatens to spread, while healthier countries are debating on how to rescue those in trouble and preserve the monetary union.

http://www.moneynews.com/StreetTalk/UBS-Euro-Survive-Demise/2011/09/07/id/410069?s=al&promo_code=CFE8-1

In Euro Zone, Banking Fear Feeds on Itself

2011-09-07T06:39:00.000-04:00

In Euro Zone, Banking Fear Feeds on Itself
By LANDON THOMAS Jr. and NELSON D. SCHWARTZ
Published: September 6, 2011

Remember the collapse of Lehman Brothers? Europeans certainly do

As Europe struggles to contain its government debt crisis, the greatest fear is that one of the Continent’s major banks may fail, setting off a financial panic like the one sparked by Lehman’s bankruptcy in September 2008.

European policy makers, determined to avoid such a catastrophe, are prepared to use hundreds of billions of euros of bailout money to prevent any major bank from failing.

But questions continue to mount about the ability of Europe’s banks to ride out the crisis, as some are having a harder time securing loans needed for daily operations.

American financial institutions, seeking to inoculate themselves from the growing risks, are increasingly wary of making new short-term loans in some cases and are pulling back from doing business with their European counterparts — moves that could exacerbate the funding problems of European banks.

http://www.nytimes.com/2011/09/07/business/global/in-euro-zone-banking-fear-feeds-on-itself.html?_r=2

Fears rise again over Europe debt crisis

2011-09-05T18:58:00.003-04:00

Fears rise again over Europe debt crisis
By Richard Milne in London

German benchmark borrowing costs fell below 2 per cent to all-time lows while Italy’s shot up as worries about the eurozone debt crisis and the fragility of banks once more intensified.

European lenders bore the brunt of a broad-based sell-off across equity markets while the cost of insuring bank and government debt hit record highs as investors fled from risky assets to safer ones.

http://www.ft.com/intl/cms/s/0/4b983354-d7df-11e0-a5d9-00144feabdc0.html#axzz1X7baqEiB

US Inquiry Eyes S&P Ratings of Mortgages

2011-08-18T05:33:00.002-04:00

US Inquiry Eyes S&P Ratings of Mortgages

The Justice Department is investigating whether the nation’s largest credit ratings agency, Standard & Poor’s, improperly rated dozens of mortgage securities in the years leading up to the financial crisis, according to two people interviewed by the government and another briefed on such interviews.

The investigation began before Standard & Poor’s cut the United States’ AAA credit rating this month, but it is likely to add fuel to the political firestorm that has surrounded that action. Lawmakers and some administration officials have since questioned the agency’s secretive process, its credibility and the competence of its analysts, claiming to have found an error in its debt calculations.

http://www.cnbc.com/id/44184348

US downgrade 'sounds alarm bell': China media

2011-08-08T05:00:00.000-04:00

US downgrade 'sounds alarm bell': China media

Standard & Poor's US debt downgrade was a wake-up call for the world, a commentary in a top Chinese state newspaper said, adding that Asian exporters faced special risks.

Citing economist Sun Lijian, the People's Daily on Sunday said Standard & Poor's Friday cut to the US' credit rating from the top notch triple-A to AA+ had "sounded the alarm bell for the dollar-denominated global monetary system".

The comments carried in the Communist Party mouthpiece follow a stinging attack launched by the official Xinhua news agency on Saturday, which said Beijing had "every right" to demand Washington safeguard Chinese dollar assets.

http://news.yahoo.com/china-hits-us-debt-addiction-downgrade-115303087.html

Muni Market Prepares for Lost AAA Ratings

2011-08-08T04:30:00.000-04:00

Muni Market Prepares for Lost AAA Ratings

By Michelle Kaske - Aug 7, 2011 1:40 PM ET

The $2.9 trillion municipal bond market is preparing for “hundreds and hundreds” of downgrades after Standard & Poor’s lowered the U.S. one level to AA+, the first-ever reduction for the country.

S&P is likely to cut its ratings on municipal debt secured by the federal government, such as pre-refunded bonds, tax- exempts backed by U.S. agencies, and credits that are most dependent on federal spending, Peter DeGroot, head of municipal research at JPMorgan Chase & Co. (JPM), wrote in an Aug. 5 report distributed after the federal downgrade. The New York-based ratings company said it would release a statement on state and local issuers today.

http://www.bloomberg.com/news/2011-08-07/muni-market-prepares-for-loss-of-aaa-ratings-as-s-p-downgrades-u-s-credit.html

S&P executive: 1 in 3 chance of future downgrade

2011-08-07T18:28:00.002-04:00

S&P executive: 1 in 3 chance of future downgrade

WASHINGTON (AP) -- A Standard & Poor's official says there is a 1 in 3 chance that the U.S. credit rating could be downgraded another notch if conditions erode over the next six to 24 months.

The credit rating agency's managing director, John Chambers, tells ABC's "This Week" that if the fiscal position of the U.S. deteriorates further, or if political gridlock tightens even more, a further downgrade is possible.

http://hosted.ap.org/dynamic/stories/U/US_US_DEBT_RATING_CHAMBERS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-08-07-11-03-40

Geithner Tells Obama He’ll Remain at Treasury

2011-08-07T18:27:00.000-04:00

Geithner Tells Obama He’ll Remain at Treasury
By Ian Katz - Aug 7, 2011 5:48 PM ET

Treasury Secretary Timothy F. Geithner, a central figure in the U.S. government’s bailouts of Wall Street banks and efforts to raise the debt limit, told President Barack Obama that he intends to remain in his job.

Geithner, 49, will stay on at least through the 2012 election, according to an administration official who was not authorized to comment publicly.

Geithner, the last remaining member of Obama’s original economic team, made his announcement after months of speculation over his future. He told White House officials this year that he was considering leaving once a deal to raise the nation’s borrowing limit deal was reached. Obama signed an increase in the limit on Aug. 2.

http://www.bloomberg.com/news/2011-08-07/geithner-tells-obama-he-plans-to-stay-in-his-job-as-treasury-secretary.html

World Market Rout Is a Loud No-Confidence Vote in Global Leadership

2011-08-05T07:17:00.002-04:00

World Market Rout Is a Loud No-Confidence Vote in Global Leadership

Global markets have issued a vote of no confidence in the management of the world’s two largest economies, the U.S. and the euro area. To regain credibility, leaders on both sides of the Atlantic need to recognize the magnitude of the crisis they face.

The outlook reflected by the market rout is not encouraging, coming as it does after European and U.S. officials thought they were doing enough to fix their similar -- and overlapping -- fiscal problems. The U.S. is growing at a rate too slow to withstand a serious shock, and that shock could easily come from Europe’s resurgent financial crisis. So far, politicians’ efforts have been far too timid to convince the world that they have the situation under control.

http://www.bloomberg.com/news/2011-08-05/world-market-rout-is-a-loud-no-confidence-vote-in-leaders-view.html

Dow average plunges 513, worst drop since 2008

2011-08-05T05:52:00.000-04:00

Dow average plunges 513, worst drop since 2008

NEW YORK -- The stock market is finishing its worst day since the financial crisis.

The Dow Jones industrial average plunged more than 500 points Thursday. Investors are concerned that the U.S. economy will enter another recession and that Europe's debt problems are not closed to being solved.

Major stock indexes fell more than 4 percent.

http://www.sj-r.com/breaking/x242975788/Dow-Jones-index-falls-erases-gains-for-year

EU Struggles to Tame Crisis Amid Contagion

2011-08-05T05:49:00.000-04:00

EU Struggles to Tame Crisis Amid Contagion

By James G. Neuger - Aug 5, 2011 4:11 AM ET

European leaders hunted for solutions to the rampaging debt crisis after the resumption of the European Central Bank’s bond-buying program failed to prop up securities in Italy and Spain.

As global stock markets sank for an eighth day, the European Commission called for another reinforcement of the European Financial Stability Facility, the 440 billion-euro ($623 billion) rescue fund for distressed euro-area states.

“To be effective, the EFSF needs to be credible and respected by the markets,” European Union Economic and Monetary Commissioner Olli Rehn said on BBC Radio 4’s Today program.

Europe’s fractious government leaders were back in the spotlight after a divided ECB restarted its bond-purchase program yesterday following a four-month hiatus. The central bank refused to extend the purchases to Italy and Spain, the two countries at the center of the current turmoil.

http://www.bloomberg.com/news/2011-08-05/europe-struggles-to-tame-crisis-as-ecb-bond-buying-fails-to-halt-contagion.html

Moody’s Affirms U.S. Rating, Warns of Downgrades

2011-08-03T06:51:00.002-04:00

Moody’s Affirms U.S. Rating, Warns of Downgrades

By John Detrixhe - Aug 2, 2011 10:30 PM ET

Moody’s Investors Service and Fitch Ratings affirmed their AAA credit ratings for the U.S. while warning that downgrades were possible if lawmakers fail to enact debt reduction measures and the economy weakens.

The outlook for the U.S. grade is now negative, Moody’s said in a statement yesterday after President Barack Obama signed into law a plan to lift the nation’s borrowing limit and cut spending following months of wrangling between Democratic leaders and Republican lawmakers.

http://www.bloomberg.com/news/2011-08-02/u-s-aaa-rating-faces-moody-s-downgrade-on-debt-economic-slowdown-concern.html

US debt deal agreed but may not save AAA credit rating

2011-08-02T07:08:00.000-04:00

US debt deal agreed but may not save AAA credit rating

Markets experience volatile trading after news of a deal yet to be approved by Congress

America has moved away from the brink of a catastrophic default after a deal was reached overnight to raise its debt ceiling.

Stock markets around the world briefly rallied on Monday, in relief that the world's largest economy would probably avoid running out of cash this week. But the agreement, which includes around $2.5tn (£1.5tn) of spending cuts over the next decade, has been criticised on both sides of the political divide, and will probably not save America's triple-A credit rating..

http://www.guardian.co.uk/world/2011/aug/01/debt-deal-agreed-concern-congress

Euro meltdown: Nicolas Sarkozy flies into Berlin for crisis talks with Angela Merkel

2011-07-20T19:52:00.000-04:00

Euro meltdown: Nicolas Sarkozy flies into Berlin for crisis talks with Angela Merkel

By ALLAN HALL

French President Nicolas Sarkozy today flew to Berlin for a summit with Angela Merkel aimed at forging a common stance on the Greek rescue package as the eurozone lurches closer to collapse.

Chancellor Merkel telephoned the French president on Tuesday night after she said that Thursday's summit was unlikely to deliver the 'silver bullet' necessary to fix the debt engulfing weak countries that use the euro

Mrs Merkel, who is increasingly agitated at Germany being called upon to be the main bailout partner for countries like Greece, Ireland and Portugal, is seen by her countrymen as increasingly weak and without direction.

http://www.dailymail.co.uk/news/article-2016775/European-debt-crisis-Nicolas-Sarkozy-jets-Berlin-talks-Angela-Merkel.html

Moody’s Places U.S. on Review for Downgrade As Debt Talks Stall

2011-07-14T06:00:00.002-04:00

Moody’s Places U.S. on Review for Downgrade As Debt Talks Stall
Q By John Detrixhe - Jul 13, 2011 6:01 PM ET

Moody’s Investors Service put the U.S. under review for a credit rating downgrade as talks to raise the government’s $14.3 trillion debt limit stall, adding to concern that political gridlock will lead to a default.

The Aaa ratings of financial institutions directly linked to the U.S. government, including Fannie Mae, Freddie Mac, the Federal Home Loan Banks, and the Federal Farm Credit Banks, were also put on review for cuts, Moody’s said in a statement today.

The U.S., rated Aaa since 1917, was put on review for the first time since 1995 on concern the debt limit will not be raised in time to prevent a missed payment of interest or principal on outstanding bonds and notes even though the risk remains low, Moody’s said. The rating would likely be reduced to the Aa range and there is no assurance that Moody’s would return its top rating even if a default is quickly cured.

http://www.bloomberg.com/news/2011-07-13/u-s-rating-placed-on-review-for-downgrade-by-moody-s-as-debt-talks-stall.html

There's Contagion in the Air

2011-06-20T06:44:00.001-04:00

Moody's threat to downgrade Italian debt raises eurozone contagion fears

Moody's has threatened to cut Italy's credit ratings on concerns over a possible rise in eurozone interest rates may derail the country's fragile economic recovery, raising more fears of contagion from the Greek debt crisis.

http://www.telegraph.co.uk/finance/financialcrisis/8583534/Moodys-threat-to-downgrade-Italian-debt-raises-eurozone-contagion-fears.html

Facebook status updates: 2012 IPO, $100B valuation? Plus slowing growth

2011-06-14T05:39:00.000-04:00

Facebook status updates: 2012 IPO, $100B valuation? Plus slowing growth

By LEVI SUMAGAYSAY
An interesting juxtaposition of Facebook news: CNBC, citing the familiar People Familiar With the Matter, reports that the world’s largest social network will probably go public at the beginning of next year, with a valuation of more than $100 billion. And Inside Facebook says that as the Palo Alto company nears 700 million users, its traffic has dropped for the second month in a row.

Signs of the company jumping the shark — although of course, two months’ worth of data hardly constitutes a trend — are mostly in the United States, according to the latter report, with Facebook losing members in its home country for the first time in May: from 155.2 million users at the beginning of the month to 149.4 million at the end. (Speculation about the reasons are making the rounds on the blogosphere, from users getting bored to users tiring of privacy issues.) Facebook also lost users in Canada and some parts of Europe, while gaining users in places such as Mexico, Brazil, India and Indonesia, says Inside Facebook, which used Facebook’s ad data to prepare the report.

http://blogs.siliconvalley.com/gmsv/2011/06/facebook-status-updates-2012-ipo-100b-valuation-plus-slowing-growth.html#respond

Horror for US Economy as Data Falls off Cliff

2011-06-01T19:16:00.000-04:00

Horror for US Economy as Data Falls off Cliff
Published: Wednesday, 1 Jun 2011 | 2:09 PM ET Text Size
By: Patrick Allen
CNBC EMEA Head of News

The last month has been a horror show for the U.S. economy, with economic data falling off a cliff, according to Mike Riddell, a fund manager at M&G Investments in London.

"It seems that almost every bit of data about the health of the US economy has disappointed expectations recently," said Riddell, in a note sent to CNBC on Wednesday.

"US house prices have fallen by more than 5 percent year on year, pending home sales have collapsed and existing home sales disappointed, the trend of improving jobless claims has arrested, first quarter GDP wasn’t revised upwards by the 0.4 percent forecast, durables goods orders shrank, manufacturing surveys from Philadelphia Fed, Richmond Fed and Chicago Fed were all very disappointing."

http://www.cnbc.com/id/43239586

The Dow Jones Industrial Average plunged 279.65 points

2011-06-01T17:01:00.002-04:00

"Interest rates are amazingly low and that, thanks to Ben Bernanke, is driving everything," Yastrow said. "We’re on the verge of a great, great depression. The [Federal Reserve] knows it.

Wall Street Baffled by Slowing Economy, Low Yields: Trader

Published: Wednesday, 1 Jun 2011 | 11:06 AM ET Text Size

By: Margo D. Beller

Special to CNBC.com

Wall Street is having a hard time figuring out what to do now that the U.S. economy appears to be sputtering and yields are so low, Peter Yastrow, market strategist for Yastrow Origer, told CNBC.

"What we’ve got right now is almost near panic going on with money managers and people who are responsible for money," he said. "They can not find a yield and you just don’t want to be putting your money into commodities or things that are punts that might work out or they might not depending on what happens with the economy.

http://www.cnbc.com/id/43236764

Markets Fret About Euro 'Slow-Motion Car Crash'

2011-05-31T06:30:00.000-04:00

Markets Fret About Euro 'Slow-Motion Car Crash'

By: Catherine Boyle
Web Producer, CNBC.cm

Reports that Greece has not met any of the fiscal targets set by the International Monetary Fund (IMF) and the European Union (EU) as part of its 110 billion euros ($157 billion) bailout knocked down the euro Monday, as other countries in the euro zone are threatened with being dragged into the Greek morass.

The IMF could withhold its portion of June’s 12 billion euros payment unless Athens can prove it can meet all its financing requirements for the next 12 months.

“It’s high noon again in Europe and the gun is to Greece’s head,” Jan Randolph, Director of Sovereign Risk, IHS Global Insight, told CNBC.com. “The single biggest issue is: Are they going to get the funding?”

http://www.cnbc.com/id/43214540

Mobius Says Fresh Financial Crisis Around Corner Amid Volatile Derivatives

2011-05-31T06:00:00.001-04:00

Mobius Says Fresh Financial Crisis Around Corner Amid Volatile Derivatives
By Kana Nishizawa - May 30, 2011 7:10 AM ET

Mark Mobius, executive chairman of Templeton Asset Management’s emerging markets group, said another financial crisis is inevitable because the causes of the previous one haven’t been resolved.

“There is definitely going to be another financial crisis around the corner because we haven’t solved any of the things that caused the previous crisis,” Mobius said at the Foreign Correspondents’ Club of Japan in Tokyo today in response to a question about price swings. “Are the derivatives regulated? No. Are you still getting growth in derivatives? Yes.”

http://www.bloomberg.com/news/2011-05-30/mobius-says-fresh-financial-crisis-around-corner-amid-volatile-derivatives.html

Who cares in the Middle East what Obama says?

2011-05-31T05:24:00.002-04:00

Who cares in the Middle East what Obama says?

President Obama has shown himself to be weak in his dealings with the Middle East, says Robert Fisk, and the Arab world is turning its back with contempt. Its future will be shaped without American influence

This month, in the Middle East, has seen the unmaking of the President of the United States. More than that, it has witnessed the lowest prestige of America in the region since Roosevelt met King Abdul Aziz on the USS Quincy in the Great Bitter Lake in 1945.

While Barack Obama and Benjamin Netanyahu played out their farce in Washington – Obama grovelling as usual – the Arabs got on with the serious business of changing their world, demonstrating and fighting and dying for freedoms they have never possessed. Obama waffled on about change in the Middle East – and about America's new role in the region. It was pathetic. "What is this 'role' thing?" an Egyptian friend asked me at the weekend. "Do they still believe we care about what they think?"

And it is true. Obama's failure to support the Arab revolutions until they were all but over lost the US most of its surviving credit in the region. Obama was silent on the overthrow of Ben Ali, only joined in the chorus of contempt for Mubarak two days before his flight, condemned the Syrian regime – which has killed more of its people than any other dynasty in this Arab "spring", save for the frightful Gaddafi – but makes it clear that he would be happy to see Assad survive, waves his puny fist at puny Bahrain's cruelty and remains absolutely, stunningly silent over Saudi Arabia. And he goes on his knees before Israel. Is it any wonder, then, that Arabs are turning their backs on America, not out of fury or anger, nor with threats or violence, but with contempt? It is the Arabs and their fellow Muslims of the Middle East who are themselves now making the decisions.

http://www.independent.co.uk/opinion/commentators/fisk/who-cares-in-the-middle-east-what-obama-says-2290761.html

Why Don't We Hear About Soros' Ties to Over 30 Major News Organizations?

2011-05-16T05:46:00.000-04:00

Why Don't We Hear About Soros' Ties to Over 30 Major News Organizations?
By Dan Gainor
Published May 11, 2011
| FoxNews.com

When liberal investor George Soros gave $1.8 million to National Public Radio , it became part of the firestorm of controversy that jeopardized NPR’s federal funding. But that gift only hints at the widespread influence the controversial billionaire has on the mainstream media. Soros, who spent $27 million trying to defeat President Bush in 2004, has ties to more than 30 mainstream news outlets – including The New York Times, Washington Post, the Associated Press, NBC and ABC.

Prominent journalists like ABC’s Christiane Amanpour and former Washington Post editor and now Vice President Len Downie serve on boards of operations that take Soros cash. This despite the Society of Professional Journalists' ethical code stating: “avoid all conflicts real or perceived.”

Read more: http://www.foxnews.com/opinion/2011/05/11/dont-hear-george-soros-ties-30-major-news-organizations/#ixzz1MVUzFhLJ

Police: IMF head picked out of lineup in sex case

2011-05-16T05:42:00.000-04:00

Police: IMF head picked out of lineup in sex case

By COLLEEN LONG and ANGELA CHARLTON, Associated Press – Sun May 15, 6:10 pm ET

NEW YORK – Dominique Strauss-Kahn's reputation with women earned him the nickname "the great seducer," and not even an affair with a subordinate could knock the International Monetary Fund leader off a political path pointed in the direction of the French presidency. All that changed with charges that he sexually assaulted a maid in his hotel room, a case that generated shock and revulsion, especially in his home country.

Police said the maid picked Strauss-Kahn out of a lineup. Unless the charges are quickly dropped, they could destroy his chances in a presidential race that is just starting to heat up.

http://news.yahoo.com/s/ap/20110515/ap_on_re_us/imf_head_assault

Dollar plunges to 2½-year low

2011-04-22T06:53:00.002-04:00

Dollar plunges to 2½-year low

By Peter Garnham

Published: April 21 2011 12:30 | Last updated: April 21 2011 12:30

The dollar dropped to its lowest level in more than two-and-a-half years on Thursday as buoyant risk appetite prompted investors to sell the currency to fund carry trades.

ttp://www.ft.com/cms/s/0/9a977da0-6bfd-11e0-b36e-00144feab49a.html#ixzz1KFRqqEEm

S&P sounds alarm on US debt

2011-04-18T19:50:00.002-04:00

S&P sounds alarm on US debt

By Robin Harding and James Politi in Washington and Michael Mackenzie in New York

Published: April 18 2011 15:19 | Last updated: April 18 2011 22:48

Standard & Poor’s issued a stark warning to Washington on Monday, cutting its outlook on US sovereign debt for the first time and throwing more fuel on the raging debate over America’s swollen deficits.

The agency kept America’s credit rating at triple A but for the first time since it started rating US debt 70 years ago, cut its outlook from “stable” to “negative”. A negative outlook means there is a one-third chance of a downgrade in the next two years.

http://www.ft.com/cms/s/0/d6c97342-69bd-11e0-826b-00144feab49a.html#ixzz1JvCRXEuR

World Bank president: 'One shock away from crisis'

2011-04-18T06:00:00.002-04:00

World Bank president: 'One shock away from crisis'

The president of the World Bank has warned that the world is "one shock away from a full-blown crisis".

Robert Zoellick cited rising food prices as the main threat to poor nations who risk "losing a generation".

He was speaking in Washington at the end of the spring meetings of the World Bank and International Monetary Fund.

Meanwhile, G20 finance chiefs, who also met in Washington, pledged financial support to help new governments in the Middle East and North Africa

http://www.bbc.co.uk/news/business-13108166

Who is John Galt ?

2011-04-16T13:22:00.001-04:00

For the uninitiated Atlas Shrugged, the movie is the adaptation of Ayn Rand’s 1957 classic novel. The novel, which centers around railroad executive Dagny Taggart as she fights to keep her business a float as American society crumbles around her, and descends into deeper and deeper recession .

In the novel Rand dramatized her unique philosophy in an intellectual mystery story that integrated ethics, metaphysics, epistemology, politics, economics and sex. She considered herself primarily a fiction writer, but realized that in order to create heroic fictional characters, she had to identify the philosophic principles which make such individuals possible.

http://www.manhattanstyle.com/arts-entertainment/movies/who-is-john-gault/

Stuck on Stupid : US deficit up 15.7% in first half of fiscal 2011

2011-04-12T17:30:00.000-04:00

Stuck on Stupid : US deficit up 15.7% in first half of fiscal 2011

US deficit up 15.7% in first half of fiscal 2011
(AFP) – 1 hour ago

WASHINGTON — The US budget deficit shot up 15.7 percent in the first six months of fiscal 2011, the Treasury Department said Wednesday as political knives were being sharpened for a new budget battle.

The Treasury reported a deficit of $829 billion for the October-March period, compared with $717 billion a year earlier, as revenue rose a sluggish 6.9 percent as the economic recovery slowly gained pace.

The Treasury argued that the pace of increase in the deficit was deceptive because of large one-off reductions in expenditures made during the first half of fiscal 2010, compared with previous and subsequent periods.

Those included a $115 billion reduction in funds spent on the Troubled Asset Relief Program (TARP) -- the financial institution bailout program -- in March 2010.

But 2011 so far has also seen significant increases in spending on defense, Social Security, health and debt service, while receipts have not grown as fast.

http://www.google.com/hostednews/afp/article/ALeqM5il-7COiRQUJ9kbLkZ3gg4nrlac5Q?docId=CNG.dcd81b51497966fd4c6461748e63e3ee.921

Stuck on Stupid : US lacks credibility on debt, says IMF

2011-04-12T17:28:00.002-04:00

US lacks credibility on debt, says IMF

By Chris Giles and James Politi in Washington
Published: April 12 2011 19:15 | Last updated: April 12 2011 19:15

The US lacks a “credible strategy” to stabilise its mounting public debt posing a small but significant risk of a new global economic crisis, says the International Monetary Fund.

In an unusually stern rebuke to its largest shareholder, the IMF said the US was the only advanced economy to be increasing its underlying budget deficit in 2011 at a time when its economy was growing fast enough to reduce borrowing.

http://www.ft.com/cms/s/0/dc1aadea-652e-11e0-b150-00144feab49a.html#ixzz1JLXw8WWX