The Great Divide Between 1 and 99
The debate goes on as to whether America has allowed for inequality to grow…
Comments »Do S&P 500 Stocks Have a Reason to Correlate to the Euro ?
We live in a global economy and if Europe’s banks or the Euro were to crash and burn I would say it would have a dramatic effect of equities worldwide.
RBC is asking if there is a logical reason for such a high correlation.
Comments »Mortgage Applications Fall Despite Low Prices and Rates
August Marks The Highest Reduction of U.S. Treasuries by China
“MostAccurate” China Forecaster Sees No Soft Landing
The analyst expects no cut in interest rates and with Europe’s debt woes a problem for China’s exports…
Comments »No Concrete Update on Expansion of EFSF Fund; Still Being Reported Incorrectly as a $2 Trillion Expansion…Euro Rises
European Banks Pledge to Shrink Themselves by $1 Trillion
Essentially the banks of Europe have committed to shrinking themselves via asset sales. This will help them raise cash and reduce risks of their exposure.
Some analyst say this will be not enough and that they may need as much as 2 trillion Euros…
Comments »Alert: Moody’s Downgrades Spain Two Notches to A1
Moody’s Investors Service has today downgraded Spain’s government bond ratings to A1 from Aa2. This rating action concludes the review for possible downgrade that Moody’s had initiated for Spain’s rating on 29 July. The ratings carry a negative outlook. The main drivers that prompted the rating downgrade are as follow:
(1) Spain continues to be vulnerable to market stress and event risk. Since placing the ratings under review in late July 2011, no credible resolution of the current sovereign debt crisis has emerged and it will in any event take time for confidence in the area’s political cohesion and growth prospects to be fully restored. In the meantime, Spain’s large sovereign borrowing needs as well as the high external indebtedness of the Spanish banking and corporate sectors render it vulnerable to further funding stress.
(2) The already moderate growth prospects for Spain have been scaled back further in view of (i) the worsening global and European growth outlook and (ii) the difficult funding situation for the banking sector and its impact on the wider economy. Specifically, Moody’s now expects Spain’s real GDP growth in 2012 to be 1% at best, compared with earlier expectations of 1.8%, with risks mainly to the downside. Over the following years, the rating agency continues to expect a very moderate pace of growth of around 1.5% on average per annum.
(3) Lower economic growth in turn will make the achievement of the ambitious fiscal targets even more challenging for Spain. Moody’s expects the budget deficits for the general government sector to be above target both this year and next. In particular, Moody’s continues to have serious concerns regarding the funding situation of the regional governments and their ability to reduce their budget deficits according to targets.
Moody’s is maintaining a negative outlook on Spain’s rating to reflect the downside risks from a potential further escalation of the euro area crisis. The rating agency expects that the next government to emerge after Spain’s parliamentary elections on 20 November will be strongly committed to continued fiscal consolidation. Spain’s rating would face further downward pressure if this expectation did not materialise.
Comments »The Guardian Piece That Ripped Markets Higher
Should You Be Bullish or Super Bullish ?
Jim Chanos Warns of the Global Value Trap
History Tells Us Not to Bet on a Eurozone Solution This Weekend
Based on previous defaults it may take years. Hopefully history will not repeat itself…
Comments »Wharton’s Siegel: Stocks a Bargain, Could Rise 40 Percent
Analyst Now Calling for 100% Haircut on Greek Bonds
Disagreement Rises Within the Federal Reserve
French and German Yields Blow Out by 100 Basis Points
French yields climbed higher than Germany’s yields for the first time since the Euro began…
Comments »
