World’s Biggest Economies Face $7.6 Trillion Debt

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

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

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

Global economy pushed to the brink

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

Horror for US Economy as Data Falls off Cliff

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

"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

World Bank president: 'One shock away from crisis'

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

US Ready to Back Bigger EU Stability Fund: Official

US Ready to Back Bigger EU Stability Fund: Official
The United States would be ready to support the extension of the European Financial Stability Facility via an extra commitment of money from the International Monetary Fund, a U.S. official told Reuters on Wednesday.

"There are a lot of people talking about that. I think the European Commission has talked about that," said the U.S. official, commenting on enlarging the 750 billion euro ($980 billion) EU/IMF European stability fund. "It is up to the Europeans. We will certainly support using the IMF in these circumstances."

"There are obviously some severe market problems," said the official, speaking on condition of anonymity. "In May, it was Greece. This is Ireland and Portugal. If there is contagion that's a huge problem for the global economy."

The remarks foreshadow a visit to Europe this week by a U.S. Treasury envoy who is expected to visit Berlin, Madrid and Paris to hold talks on the ramifications of the debt crisis.

more: http://www.cnbc.com/id/40454469

Hungary : Can you say domino ?

Hungary's deficit talk rattles financial markets

Jun 4, 1:54 PM (ET)

http://apnews.myway.com/article/20100604/D9G4JRR80.html

BUDAPEST, Hungary (AP) - Hungary's currency, bonds and stock market reeled Friday as the new government tried to reassure investors that it was not about to slide into a Greek-type crisis despite official comments that the economy was in serious trouble.

Fears that the economic peril could spread weighed heavily on the euro. The currency dropped below $1.20 for the first time in more than four years, falling to as little as $1.1994 in late European trading before edging back up to $1.2006. That was its lowest level since March 2006.

On Thursday, Lajos Kosa, deputy chairman of the governing Fidesz party, said Hungary was facing a Greece-like financial meltdown. And former Fidesz finance minister Mihaly Varga said the deficit could reach 7-7.5 percent of GDP, about twice as much as planned for 2010 by the previous government.

The new government was sworn in Saturday and its talk about a massively revised budget gap was eerily similar to the situation in Greece. There, the 2009 deficit went from a planned 3.7 of GDP to 13.6 percent of GDP by year's end and led to the financial crisis, which saw Greece get a euro110 million ($134.95 million) rescue package from the European Union and the International Monetary Fund to save it from bankruptcy.

International markets reacted quickly to the parallels drawn between Hungary and Greece, evidence that concerns about budget deficits in Europe continued to worry the markets.

http://apnews.myway.com/article/20100604/D9G4JRR80.html

U.S. sovereign debt downgrade : "While we see limited risk of a U.S. sovereign debt downgrade in the next 2-3 years, beyond that we cannot be so certain," wrote Societe Generale's economics team in a recent report.

U.S. Debt Shock May Hit In 2018, Maybe As Soon As 2013: Moody's


By JED GRAHAM, INVESTOR'S BUSINESS DAILY

Posted 05/05/2010 07:56 PM ET

http://www.investors.com/NewsAndAnalysis/Article.aspx?id=532490

Spiraling debt is Uncle Sam's shock collar, and its jolt may await like an invisible pet fence.


"Nobody knows when you bump up against the limit, but you know when it happens it will really hurt," said fiscal watchdog Maya MacGuineas of the Committee for a Responsible Federal Budget.

The great uncertainty about how much debt is too much has tended to make fiscal discipline seem less urgent, rather than more. There is no obvious threshold beyond which investors will demand higher real yields for holding U.S. debt. Vague warnings from ratings agencies about the loss of America's 'AAA' status haven't added much clarity — until recently.

In the wake of the financial crisis and recession, Moody's Investors Service has brought new transparency to its sovereign ratings analysis — so much so that 2018 lights up as the year the U.S. could be in line for a downgrade if Congressional Budget Office projections hold.

The key data point in Moody's view is the size of federal interest payments on the public debt as a percentage of tax revenue. For the U.S., debt service of 18%-20% of federal revenue is the outer limit of AAA-territory, Moody's managing director Pierre Cailleteau confirmed in an e-mail.

Under the Obama budget, interest would top 18% of revenue in 2018 and 20% in 2020, CBO projects.

But under more adverse scenarios than the CBO considered, including higher interest rates, Moody's projects that debt service could hit 22.4% of revenue by 2013.

"While we see limited risk of a U.S. sovereign debt downgrade in the next 2-3 years, beyond that we cannot be so certain," wrote Societe Generale's economics team in a recent report.

The Moody's ratings framework is one that could have a significant influence on policy — particularly in a crisis.

Because debt levels and interest rates can't be lowered overnight, the obvious way of staying within the AAA limits set by Moody's would be to raise revenue.

"It would bias the remedy in favor of tax increases for countries that want to improve their bond rating," said Brian Riedl, budget analyst at the conservative Heritage Foundation.

Because economic growth is a key to fiscal health, Riedl argues that a ratings agency concerned about whether bondholders are repaid should bias spending cuts over tax increases.

read the rest :

http://www.investors.com/NewsAndAnalysis/Article.aspx?id=532490

Financial Reform ?

Is this some kind of a joke the same person who single handily profited from the global financial crisis is the author of the current financial reform bill? Chris Dodd has no business being in government let along regulating the industry which he profited from all of its wrong doings .

What I also find peculiar is that the industry being regulated is so accepting of this this regulation ? Remember these are the same people who watched porn instead of Bernie Maddoff. Is it simply because Wall Street has heaped millions of dollars in support of Obama and his drive to merge corporate and government interests? Or because Obama has taped so many Goldman Sacks alumni to mastermind his big government takeover of your life.

This whole financial reform bill stinks to high heaven and with all the usual suspects lining up in support of this legislation its no wonder most folks are eyeing the November congressional elections instead of focusing on the day to day operation of the US Government.

Wonder why they missed the financial crisis? Or Bernie Madoff's Ponzi scheme? A government report obtained by ABC News reveals that SEC employees were focused on something else: porn.

Glodal financial crisis goes on while SEC watched Porn

SEC watching porn instead of financial industry

By Husna Haq, /Correspondent / April 23, 2010

http://www.csmonitor.com/Money/2010/0423/SEC-watching-porn-instead-of-financial-industry

Just when it was beginning to repair its reputation with its high-profile case against Goldman Sachs, the Securities and Exchange Commission (SEC) suffers another major blow: Senior staffers there were surfing Internet pornography – as much as eight hours per day, in one case – when they were supposed to be policing the financial industry.

Perhaps this helps explain why the SEC didn't see the financial collapse coming. Or did nothing to stop Lehman Bros.’ questionable accounting tactics. Or Bernie Madoff’s dubious “investing” strategy."

They were busy with other things.

The information comes by way of a disturbing SEC memo to Sen. Chuck Grassley (R), who requested that the agency’s internal watchdog conduct an investigation. ABC News broke the story on its Thursday evening newscast.

The investigation found 31 serious offenders over the past two-and-a-half years, 17 of whom were senior SEC officers with salaries ranging from $100,000 to $222,000 per year.

The AP reports these highlights –

• A senior attorney at the SEC's Washington headquarters spent up to eight hours a day looking at and downloading pornography. When he ran out of hard drive space, he burned the files to CDs or DVDs, which he kept in boxes around his office. He agreed to resign, an earlier watchdog report said.

• An accountant was blocked more than 16,000 times in a month from visiting websites classified as "Sex" or "Pornography." Yet, he still managed to amass a collection of "very graphic" material on his hard drive by using Google images to bypass the SEC's internal filter, according to an earlier report from the inspector general. The accountant refused to testify in his defense and received a 14-day suspension.

• Seventeen of the employees were "at a senior level," earning salaries of up to $222,418.

Rep. Darrell Issa (R) of California, called the scandal “nothing short of disturbing that high-ranking officials within the SEC were spending more time looking at pornography than taking action to help stave off the events that brought our nation’s economy to the brink of collapse.”

But, as the Washington Post reports, it’s not the first time government workers have been caught accessing pornography on the job. Employees at the National Science Foundation, the National Park Service, and even a chief judge of the US 9th Circuit Court of Appeals have been caught looking at pornography or posting sexually explicit content on personal websites.

http://www.csmonitor.com/Money/2010/0423/SEC-watching-porn-instead-of-financial-industry

California is a greater risk than Greece, warns JP Morgan chief

California is a greater risk than Greece, warns JP Morgan chief
Jamie Dimon, chairman of JP Morgan Chase has warned American investors should be more worried about the risk of default of the state of California than of Greece's current debt woes.

By James Quinn, US Business Editor in New York

Mr Dimon told investors at the Wall Street bank's annual meeting that "there could be contagion" if a state the size of California, the biggest of the United States, had problems making debt repayments. "Greece itself would not be an issue for this company, nor would any other country," said Mr Dimon. "We don't really foresee the European Union coming apart." The senior banker said that JP Morgan Chase and other US rivals are largely immune from the European debt crisis, as the risks have largely been hedged.

California however poses more of a risk, given the state's $20bn (£13.1bn) budget deficit, which Governor Arnold Schwarzenegger is desperately trying to reduce.

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7326772/California-is-a-greater-risk-than-Greece-warns-JP-Morgan-chief.html

"psychology of looming collapse”

Greece turns on EU critics

By Kerin Hope in Athens, Quentin Peel in Berlin and Tony Barber in Brussels

http://www.ft.com/cms/s/0/3cfeab9e-1813-11df-91d2-00144feab49a.html

Published: February 12 2010 20:32 Last updated: February 12 2010 20:50

Greece on Friday unleashed a fierce attack on its European Union partners, accusing them of creating a “psychology of looming collapse” a day after they pledged support for the country’s crisis-hit government.

George Papandreou, Greek prime minister, said that, in the eurozone’s first big test, Greece had become “a laboratory animal in the battle between Europe and the markets”.

In a televised address to his cabinet, he criticised EU members for sending “mixed messages about our country . . . that have created a psychology of looming collapse which could be self-fulfilling”.

Mr Papandreou blamed the George Papandreou, Greek prime minister for failing to crack down on the previous conservative government’s “criminal record” in falsifying statistics. “This has undermined the responsibility of the European institutions with international markets,” he said.

His outburst is likely to infuriate the very leaders whose help Mr Papandreou needs. It came as it emerged there would be no more talk of financial assistance until Athens had persuaded the EU that it had a sustainable austerity programme in place.


Deepening slump

Greece’s recession has been deeper than reported, with the fourth quarter of last year seeing another turn for the worse – raising more doubts over whether it can meet its targets of cutting public-sector deficits. Greek gross domestic product contracted by 0.8 per cent in the final three months of last year, by far the sharpest decline reported so far by a eurozone country.

That followed declines of 1 per cent, 0.3 per cent and 0.5 per cent in the first, second and third quarters of the year.

Previous estimates had shown falls of 0.5 per cent, 0.1 per cent and 0.4 per cent. The pace at which Greek GDP dropped last year could also cast doubt on the government’s prediction that GDP will fall by just 0.3 per cent in 2010.

Germany is insisting Athens bears initial responsibility for restoring confidence in Greece. Angela Merkel, German chancellor, resisted French efforts to come up with an explicit bail-out package at Thursday’s summit of EU leaders in Brussels.

Officials in Paris said Ms Merkel’s insistence on additional efforts by Greece to cut its budget deficit came close to thwarting agreement at the summit. According to sources in Athens, she called for a rise in Greek value-added tax of 1 per cent, in addition to extra spending cuts. Herman Van Rompuy, EU president, drafted a compromise before the summit started.

Ms Merkel’s tough stance has overwhelming political and popular support in Germany.

Government officials say they are also constrained by constitutional court rulings, which insist on strict adherence to fiscal and monetary stability criteria in the eurozone .

http://www.ft.com/cms/s/0/3cfeab9e-1813-11df-91d2-00144feab49a.html

European single currency is facing an 'inevitable break-up'

Collapse of the euro is 'inevitable': Bailing out the Greek economy futile, says FRENCH banking chief

By Sam Fleming and Tim Shipman

http://www.dailymail.co.uk/news/worldnews/article-1250433/Greece-debt-bailout-EU-leaders-split-euro-crisis.html

Last updated at 1:07 PM on 13th February 2010

The European single currency is facing an 'inevitable break-up' a leading French bank claimed yesterday.

Strategists at Paris-based Société Générale said that any bailout of the stricken Greek economy would only provide 'sticking plasters' to cover the deep- seated flaws in the eurozone bloc.

The stark warning came as the euro slipped further on the currency markets and dire growth figures raised the prospect of a 'double-dip' recession in the embattled zone.

http://www.dailymail.co.uk/news/worldnews/article-1250433/Greece-debt-bailout-EU-leaders-split-euro-crisis.html

Greek Economy faces the Battle of Thermopylae

Does the Greek financial crisis signal the beginning of the end for the EU ?

There is something about FINRA

There is something about FINRA;seems the same people who failed ot protect the public didn't know Bernie Maddoff was crook,or some would say failed to act when everyone knew Bernie Maddoff was a crook ,the very same people who through their policies of no money down easy credit created a global melt down are now claiming to give "unbiased stock advice" on their website? Am I the only one that see the irony in this?

As my grandmother used to say ." I would never buy a used car from that guy" and although I may let my daughter date a Rolling Stone ,I would never take stock advice from an administration that has failed in every single policy initiative it has mistakenly put forth.

Seriously folks getting the IRS to do your taxes seems a far less risk ,than listening to a government agency about something so complex like investing. After all the IRS is billed as the most efficient tax collection agency in the world ! While the SEC is on the cusp of being folded into a super regulatory agency and if anything has completely failed in its mission of protecting the investor class.