DICK bove Recommends a TARP Style Program for Europe
Who shall fund it..? The clam ? China ? Russia ? How about the Libyan rebels and all that cash they have…
Comments »John Chambers of Cisco Remains Upbeat About Customer Spend Despite a Few Bad Qs
Tom Perkins Sees Harsh Results For Venture Capital Going Forward
A sour investment for venture capital may hurt the balance sheet more going forward since there are too many dollars chasing to little companies.
Perhaps overseas will save the day. Think off shore.
Comments »Financial Professionals Turn Up Grim Results in a Recent Survey
Gold Continues to Settle Down While the Dollar Strengthens
Cummins Engines, $CMI, Pops on Excellent Profit Commentary
ECB Deposit Facility Usage Soars; Described as Parabolic
Liquidity is scarce and solvency is questionable…LIBOR continues to move higher.
Full article/analysis of Europes debt woes
Also dollar reserves are up across Europe
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Rumors Carpe Diem Global Equities a Third Time in 24 Hours
Russia is now purported to be a white knight for Italy’s debt woes…
Comments »Jubak: Get ready for the next crash
Jim Jubak at MSN has out an assessment of the EU crisis and banking issues, in his regular, esteemed form. You really must read the thing in its entirety.
Comments »Financial markets are behaving as if they expect a European banking crisis that would require the bailout or nationalization of some European banks. That would feel like a replay of the financial crisis that followed the bankruptcy of Lehman Brothers in the fall of 2008. Only this time, the epicenter would be Europe instead of the United States, and the ripples would expand from the eurozone outward into global financial markets.
How realistic is that fear? Very, I’m afraid. European banks are facing a very real liquidity and capital crisis that could lead to the need for a government rescue of some globally significant banks.
But the crisis isn’t an exact replay of the 2008 crisis. The effects of the crisis would not be limited to Europe, but the likelihood that a European crisis would take down a major U.S. bank — in a mirror image of the 2008 crisis where problems originating in the United States did lead to the bailouts of banks in the United Kingdom, Germany and Belgium — is relatively small. On the other hand, the crisis is potentially worse this time around because the European Central Bank is much less able to intervene as a lender of last resort than the U.S. Federal Reserve was in 2008.
Understanding this crisis
The current European banking crisis is rooted in the Greek, Italian, Spanish, Portuguese and Irish debt crises. But the repeated collapse-bailout-collapse-again pattern of the prices of bonds of those countries wouldn’t have produced the current mess without a series of missteps by banks, bank regulators and central banks.European banks hold a huge amount of government debt from the countries involved in the crisis. German banks, for example, held $22 billion in Greek government debt at the end of 2010, according to the Bank for International Settlements. If you add holdings of Greek government debt to holdings of private-sector Greek debt, the exposure gets much higher. For example, in May, Fitch Ratings said that French bank Credit Agricole (CRARY +3.59%, news) had $35 billion in exposure to Greek government and private debt. BNP Paribas (BNPQY -0.82%, news) and Société Générale (SCGLY +6.83%, news) had exposure of about $11 billion each.
The exposure of European banks to Greece, however, is small souvlaki compared with exposure to the much larger Italian economy. BNP Paribas, for example, has an estimated $31 billion in exposure to Italian government and private-sector debt. Even where the total for Italy is not as high as for Greece, the additional exposure is big enough to add to worries. Credit Agricole has an estimated $17 billion in Italian exposure.
But the current banking crisis owes as much to the reaction of banks and bank regulators to the problem as to the size of this exposure. Nobody now expects that Greece will be able to avoid a default in the end. Even Sunday’s announcement of new measures to close a $3 billion budget gap just served to convince financial markets that the more Greece cuts, the more the economy will slow, and the fewer taxes the government will collect. Like last year’s rescue package, this year’s deal, if ultimately approved, only buys time.
Goldman on Obama’s Jobs Bill
A bump of 1.25% GDP in 2012; if it passed. Preliminary judgement says it will not pass.
Comments »Doug Kass Out with a New Report on What Four Scenario’s His Crystal Ball is Asserting
FLASH: U.S. Markets Turn a Flat Open into a Gradually Grinding Higher Gain
U.S. markets took the ease of turmoil and positive markets in Europe into a chance to climb higher. The S&P is up 0.69% and the NASDAQ is up 0.9%
Comments »Could Gold Double From Here by Year End ? One Trader Thinks So
I doubt this analysis unless there is a frozen banking market for 3 months plus….just do not see that happening.
Comments »Do You Have Any Questions About Europe’s Short Selling Ban ?
UBS Report on Stock That Will Benefit From Europe’s Debt Woes
FLASH: U.S. Futures and European Markets Turn Green Again
Upgrades and Downgrades This Morning
Upgrades
KEX – Kirby Corp upgraded to Buy at Stifel Nicolaus
PNG – PAA Natural Gas Storage upgraded to Buy from Neutral at UBS
JPM – JPMorgan Chase upgraded to Buy at Stifel Nicolaus
AGNC – American Capital Agency initiated with an Outperform at Wells Fargo
NRGY – Inergy upgraded to Buy from Neutral at UBS
CAVM – Cavium Networks upgraded to Outperform from Market Perform at JMP Securities
AYR – Aircastle initiated with an Overweight at Barclays
LMT – Lockheed Martin upgraded to Neutral from Sell at Goldman
SODA – SodaStream initiated with a Buy at Janney Montgomery Scott
Downgrades
DOW – Dow Chemical upgraded to Outperform at Credit Agricole
GS – Goldman Sachs initiated with an Equal Weight at Morgan Stanley
FDX – FedEx downgraded to Sector Perform from Outperform at RBC Capital
HSP – Hospira downgraded to Equal Weight from Overweight at Barclays
BP – BP target lowered to $55 at The Benchmark Company
NGG – National Grid downgraded to Neutral from Buy at UBS
HCA – HCA downgraded to Neutral from Outperform at Cowen
MLM – Martin Marietta downgraded to Sell from Hold at Citigroup
DLB – Dolby Labs initiated with a Neutral at Merriman
SWI – SolarWinds downgraded to Underweight from Equal Weight at Morgan Stanley
NETL – NetLogic downgraded to Neutral from Buy at UBS
Comments »Gapping Up and Down This Morning
Gapping up
VVUS +0.6%, BQI +22.4%, EGO +1.1%, MGM +1.2%, LXRX +9.4%, GOLD +1.0%, JPM +0.7%,EGHT +1.1%, BBY +2.6%, SPWRB +10.7%, NBG +4.1%, UBS +2.8%, DB +2.4%, INO +5.3%, WLT +5.1%, ISIL +2.3%,
SVM +2.0%, SPWRB +10.7%, EK +3%, GFI +1.6%, HMY +1.4%, TASR +2.8%, SODA +1.5%,
Gapping down
STLD -2.2%, ITMN -7%, E -3.9%, RIG -2.9%,
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