It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
You guys may want to call me insane and pure crazy, but I just did almost all in on my Americican investments!
My personally belifies is that a rally is about!
...the "up side" for us is the US market right now!
As you tuck into your turkey this Christmas, take a moment to consider the plight of pinstriped eurocrats, locked in their offices, staring dejectedly out of the window until they come up with a way to get banks lending and people spending – and generally save Europe...
...Bank of England governor Mervyn King probably didn’t help their cause yesterday, when he said that the debt crisis is causing a worrying dependence on central banks. King said the crisis had been deepened by what he calls ‘negative interlinkages’ (the way that cross-holdings between banks can mean a problem with one is a problem with all), and that Governments’ dependence on the BoE, the European Central Bank, etc, are a sign that ‘stressed financial conditions are passing through to the real economy’.
King made the comments after a meeting of the European System Risk Board, and just over a day after the ‘Sarko trade’ (so-called because the French president is a big supporter), whereby the European Central Bank lent €489bn (£407bn) to 253 European banks in an effort to increase liquidity. The idea is that when Governments run into trouble, they can borrow from their own banks, rather than turning to central banks for help.
But economists have expressed concerns that while that’s a good short-term solution, making banks lend to Governments that may or may not be able to pay their debts puts them in a much riskier position in the long-term. Markets, though, seemed satisfied, with the French CAC, the German DAX and the FTSE all rising by between 1% and 1.36% (although to be fair, it’s generally accepted that the markets are more fickle than Simon Cowell at a school talent show, so they’re not necessarily reliable)...
July 19, 2011
By Michael Snyder
Can you smell it? There is blood in the water. Global financial markets are in turmoil. Banking stocks are getting slaughtered right now. European bond yields are absolutely soaring. Major corporations are announcing huge layoffs. The entire global financial system appears to be racing toward another major crisis. So could we potentially see a repeat of 2008? Sadly, when the next big financial crisis happens it might be worse than ...
The Japanese government is considering a dollar swap arrangement with India to provide emergency liquidity in case the European debt crisis reaches emerging economies, the Nikkei business newspaper said on Sunday.
The agreement would set the total swap arrangement at $10 billion, or 780 billion yen, the Nikkei said.
Both countries are looking to sign off on the arrangement next Wednesday, when leaders meet at a bilateral summit, the paper said.
The currency swaps are expected to support the Indian rupee as it continues to weaken against the greenback and Europe's sovereign debt crisis hits India's exports.
The dollar-swap arrangement with India would follow a similar agreement with South Korea in October.
The U.N. General Assembly on Saturday approved a 5 percent decrease in the United Nations' budget for 2012-2013 over the previous two-year period, only the second time in 50 years that the world body has slashed its spending.
U.N. Secretary-General Ban Ki-moon praised the 193-nation General Assembly for reducing costs at a time when governments around the world are cutting expenditures and implementing austerity measures in response to the global financial crisis.
The European Central Bank has launched the biggest lending operation in its history, and banks pounced on the offer on Wednesday, borrowing almost a half-billion euros for three years at a low interest rate. Governments hope the banks will use the cash to buy sovereign bonds, but critics warn the ECB's strategy is risky and could stoke inflation.
Originally posted by pause4thought
But you are right to highlight the way this type of bailout raises false hopes for the economy. It's the same old pattern: bailout, hope, no lending, no improvement. It all just disappears into the black hole of bank balance sheets...
Spain's economy will shrink in the last quarter and faces a bleak outlook for the coming months, its new economy minister said on Monday, heightening fears of a fresh recession.
Luis de Guindos dampened already gloomy expectations for the economy as the new conservative government got to work on its programme of tough spending cuts.
"This quarter the Spanish economy will surely see a downturn and we will return to negative growth," he told a news conference.
"Make no mistake, the next two months are not going to be easy, neither from a growth nor a jobs point of view," he said at a ceremony for his top ministry staff taking office.
The fourth-quarter outlook "is logically going to determine the (economic) profile we will enter in the coming year, which is going to be a relatively slowed-down profile."
The Spanish quoted him later telling reporters that gross domestic product would contract by 0.2 to 0.3 percent in the current quarter. Spain's official growth figure for the third quarter was zero.
Lelde Smits: Well what’s holding them [Congress] back then if we have the threat of an imminent crisis, as you say?
Jim Rogers: It would horribly painful to do what’s necessary. The problem Lelde is that the measures that America needs and not just America, many countries but especially America needs, would cause huge pain for a while. But, Lelde, if we don’t take our pain now and we wait until the market forces the pain on us, then it’s going to be you know a systemic collapse.
It’s going to be very, very serious pain; you’re going to see riots in the street. You’re going to see serious, serious problems, maybe perhaps war even. It’s better to go ahead and take the pain now, while it would be terrible for two or three or four years, at least we’d get it behind us and start over.
Yes, ladies and gents, the trillions and trillions in total financial, non-financial, government and household debt that are finally coming due will need to find willing hosts wherein to gestate. Alas, said hosts are rapidly disappearing, and as hard as they may try, the global central banks are failing at being willing replacements to the traditional repo ponzi mechanism. But back to the imminent surge in bond issuance of €720 billion which UBS has the following words to describe: "Given the contraction in the investor base for most Eurozone sovereigns on the back of the increased market volatility and spread widening experienced by most issuers, we expect funding conditions to be quite challenging next year. We expect the majority of the issuers to front-load supply in the first three months of the year and to bring to the market a number of new lines with large initial outstanding amounts." Sure enough, enjoy the holidays, because in January things are gonna get very rough: "we expect January to remain the busiest month despite a EUR 5bn reduction in bond redemptions from EUR 63bn in the first month of 2011 to EUR 58bn expected for January 2012. Consequently, net issuance in January is expected to be particularly heavy at EUR 24bn vs. EUR 22bn in 2011." In other words: hold on tight.
The Government is considering plans to restrict the flow of money in and out of Britain to protect the economy in the event of a full-blown euro break-up.
The Treasury is working on contingency plans for the disintegration of the single currency that include capital controls.
Britain’s top four banks have about £170bn of exposure to the troubled periphery of Greece, Ireland, Italy, Portugal and Spain through loans to companies, households, rival banks and holdings of sovereign debt. For Barclays and Royal Bank of Scotland, the loans equate to more than their entire equity capital buffer.
The Ministry of Defence has been consulted about organising a mass evacuation if Britons are trapped in countries which close their borders, prevent bank withdrawals and ground flights.
Treasury officials would not comment on the specifics of any plans but said the Government always had contingency plans that cover a full range of eventualities.
A break up of the euro would have a devastating impact on the UK. HSBC economists have warned that it could trigger a global depression and forecasters at the Centre for Economic & Business Research reckon it would knock about a percentage point off UK growth – plunging the country into a full-blown recession in 2012.
The scale of economic problems alongside the existing debt burden would leave the Government with little in its armoury to combat the collapse, making capital controls one of the few viable options.