The Euro zone financial officials and the EU political leaders are exploring ways of delaying some components of the second bailout package for Greece, or even delaying the entire bailout altogether, while they try to avoid a disorderly default. According to EU sources, the postponement could extend until April, when Greece holds their parliamentary elections.… [Read more…]
U.S. consumer confidence unexpectedly declined in January. The New York based Conference Board reported on January 30th that the confidence index fell from 64.8 to 61.1 exceeding even the most pessimistic forecast. Some economists were actually projecting an increase to 68.0. Americans are worried about their job status, income, rising food and gas prices, and… [Read more…]
Ancient Greece, considered to be the cradle of civilization for the western world is where it all began. No, not the development of culture and sophistication, but the decline of the euro zone empire. The addiction of excessive, cheap borrowing, major economic slowdown on the verge of recession, and fear of sovereign debt default has… [Read more…]
In late December the Japanese government announced that Japan and China will advance direct trading of yen and yuan without using U.S. dollars as the base. Further volatility and uncertainty in the worlds’ currency markets, created by the European debt crisis, has encouraged the promotion of a medium that will cut trading costs and will… [Read more…]
It begins with the financial instability of a nation’s banking system. Rising interest rates and a higher price tag for insurance against default of a bank’s bonds are the harbinger of difficult fiscal times ahead. These increasing cost of funds for Indian banks are growing at the fastest rate in Asia and are creating a… [Read more…]
Do you remember a few years back when the major European banks were required to go through a financial examination to determine their fiscal stability? It was designated as the “European Bank Stress Test” and 91 of the foremost banks passed with flying colors. Initially, the market response was one of relief and reassurance. However, it was later disclosed that… [Read more…]
The Japanese Yen is the flavor of the day, the week, the month and the year. Whenever there is even a hint of economic and/or political commotion, the Yen is the sought out asset by international investors and speculators. It is an interesting phenomenon, considering that Japan’s budget deficit is almost twice the size of… [Read more…]
As part of a plan to lower Greece’s debt burden, and to try and contain the two year European Union crisis, it has been reported that euro zone leaders have come to an agreement with private banks and insurers. The agreement imposes upon those banks and insurers to accept a 50% loss on their holdings… [Read more…]
For many years and through many recessions, the United States’ economy was the steam engine for the world. It was joked that when the US caught a cold, the rest of the world got the flu. But what happens when the US economy gets the flu? With economic globalization, the symptoms for regional recessions and… [Read more…]
US Durable Goods orders dropped while consumer spending and consumer confidence are down. Corporations are not hiring new employees or investing, despite sitting on 2 trillion dollars in reserves. The financial markets are once again concerned with the growing number of people still being fired, and home sales are down to record levels – due… [Read more…]
February 16, 2012
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