iBankCoin
Home / Finance (page 23)

Finance

Pimco’s El-Erian: Tight Credit Threatening Global Economy

“Sovereign-debt concerns in Europe and in the United States grab headlines repeatedly though another credit crisis poses just as much as a threat to the global economy — tight credit for households and smaller businesses, said Mohamed El-Erian, CEO of fund giant Pimco.

Banks in the United States, Europe and elsewhere have been reluctant to lend to households, individuals and smaller businesses in wake of the 2008 credit crisis.

As a result, unemployment rates remain high and recovery suffers.”

Read more

Comments »

Investors Yank Cash From Retirement Accounts to Seek Alternative Investments

 

“David and Michelle Haisley from Fort WayneIndiana, weren’t happy with the performance of their retirement funds, so they made another investment — a foreclosed home for $27,000.

Haisley, a heating and air-conditioning technician, said he worked on the house before it went into default and decided to make an offer when he saw it listed at about a third the price of surrounding homes. They’ve already found tenants for the house and David said they’ll buy another foreclosure if they can find the right deal.”

Full article

Comments »

The Market Oracle Chimes in With an Outside View of Whats to Come After U.S. Elections (chart porn)

“It is that time in the presidential cycle that gets everyone emotional and concerned with the future outlook of the United States. While everyone has their opinion on whom they think is best for America, I promised myself a long time ago to keep my thoughts to myself for two key reasons. ONE: only 50% of Americans will agree with me J, and TWO: I am Canadian so I do not experience what Americans go through on a daily basis.

My thinking is if Obama wins then”

Full article

Comments »

Global Regulators Suggest The World’s Largest Banks Raise More Capital

“Citigroup [C  37.95    0.57  (+1.52%)   ]Deutsche Bank [DB  46.59    0.88  (+1.93%)  ]HSBC [HSBA-LN  621.60    -3.40  (-0.54%)   ] and JPMorgan Chase [JPM  42.84   1.16  (+2.78%)   ] will need to hold the most extra capital of 28 banks considered so large and complex they need an extra buffer to absorb potential losses, global regulators said on Thursday.

The four global banks will be required to hold an extra 2.5 percent of common equity as a percentage of risk-weighted assets on top of a 7 percent minimum being phased in from January, according to the Financial Stability Board, a regulatory task force for the group of 20 top economies.”

Full article

Comments »

Overnight Funding Costs Recede as Markets Open After Frankenstorm Sandy

“NEW YORK (Reuters) – Wall Street firms and U.S. banks scrambled to raise cash on Wednesday, as U.S. financial markets resumed normal trading after a devastating storm pummeled the U.S. East Coast and closed major markets for two days.

Major banks and investment houses rely on the money markets – a key cash source for financial markets – to finance trading positions and loans that they make. Companies sell commercial paper and other short-term loans to money market funds and other investors fund their inventories and payrolls.

The massive storm, Sandy, disrupted these markets, thinned trading and drove up borrowing costs on Monday and Tuesday.

But overnight borrowing costs in funding markets have since receded from those levels, which were last seen during the height of the global credit crunch in late 2008.”

Comments »

More on 147.0 BoJ Stimulus Program

 

“The Bank of Japan expanded its asset-purchase program for the second time in two months, a move that failed to cheer investors as stocks slumped amid mounting evidence that the economy contracted last quarter.

The fund will increase by 11 trillion yen ($138 billion) to 66 trillion yen while a separate credit loan program will stay at 25 trillion yen, the bank said in Tokyo, acting hours after data showed the biggest decline in industrial output since last year’s earthquake. The BOJ will also offer unlimited loans to banks to boost credit demand.”

Full article

Comments »

Wall Street Makes Plans to Open Monday Even as Sandy Bears Down

(Reuters) – New York-based stock exchanges are sending officials into Manhattan on Sunday to stay in hotels and coworkers’ homes as the NYSE and Nasdaq prepare to open for business on Monday, even as Hurricane Sandy closes off public transportation links.

Hurricane Sandy is expected to slam into the East Coast on Monday night, bringing torrential rains, high winds, severe flooding and power outages, forecasters said. The rare “super storm,” created by an Arctic jetstream wrapping itself around a tropical storm, could be the biggest to hit the U.S. mainland.

New York’s subway, bus and rail systems will suspend service by 7 p.m. EDT on Sunday, Governor Andrew Cuomo said, which means there will be no public transportation into or within the city. About 8.5 million commuters use the Metropolitan Transit Authority’s rail, bus and subway lines daily.

A spokesman for NYSE Euronext said after the Cuomo announcement that the New York Stock Exchange was monitoring the situation but still planned to open for trading on Monday. A spokesman for Nasdaq OMX Group referred Reuters’ inquiry to a previous statement that said the Nasdaq would open for trading as normal on Monday.

Read the rest here.

Comments »

Pandora’s Box Is Open

“Via Mark J. Grant, author of Out of the Box,

“No matter where you stand, no matter how far or how fast you flee, when it hits the fan, as much as possible will be propelled in your direction, and you will not possess a towel large enough to wipe all of it off.”

                                           -The Wizard

Coming Attractions….”

Full article

Comments »

Hope You Have Saved Up for Next Year’s Rainy Days

“Consumers will have to dig deeper into their pockets next year to pay for costlier health care, more expensive grocery bills and higher taxes, an extra drag on the country’s already slow-moving economy.

Getty Images

The additional outlays look set to test the resilience of consumers, whose spending accounts for around two-thirds of the U.S. economy.

“We think it’s going to be a difficult six to nine months,” said Scott Hoyt, senior director of consumer economics for Moody’s Analytics. “If anything, conditions are likely to get worse, particularly at the start of the year.”

Full article

Comments »

Japan Announces Another Stimulus Program, Markets Fail to React Positively

Japan announced 750 billion yen ($9.4 billion) of fiscal stimulus to shore up growth as bond investors told the government they’re worried about delays in financing more spending.

With lawmakers in the Diet blocking financing legislation, some of the extra money will come from tapping discretionary budget funds, the government said in Tokyo today. The Finance Ministry said the impasse may affect a debt sale planned for December after an emergency meeting today with primary bond dealers.”

Full article

Comments »

Spain’s Lower Parliamentary House Rejects Most of the 2013 Budget

“Spain’s lower parliamentary house rejected on Wednesday all 11 amendments that lawmakers proposed to the draft 2013 budget, as they debated an austerity package aimed at deflating one of the euro zone’s highest deficit.

Opposition deputies will now propose a new set of partial changes which will be discussed and voted on over the next couple of weeks.

The lower house, dominated by the ruling People’s Party (PP), will vote on a final budget plan in mid-November, when it will pass to the upper house.

Lawmakers must finalize the plan before the end of the year.”

Full article

Comments »

Greece Gets Two More Years of Breathing Room to Meet Bailout Targets

“Greece has been granted its long-standing plea for additional time to push through austerity cuts that have been finalised after months of negotiations, the finance minister said on Wednesday.

“Today, we obtained the extension,” Yannis Stournaras told parliament, referring to the additional two years to hit bailout targets that Athens has been lobbying for.”

Full article

Comments »

Europe’s Highest Court Says the Bailout Fund Violates EU Law and Should Be Banned From Its Current Form

“The euro area’s 500 billion-euro ($652 billion) bailout fund faces another test as the European Union’s highest court weighs claims that the firewall violates EU law and should be banned in its current form.

A complaint by Thomas Pringle, an independent member of the Irish parliament, has reached the EU Court of Justice, which has the power to topple the European Stability Mechanism, or ESM. Pringle, the European Commission and European Parliament as well as EU nations including Ireland, Germany and France attended a hearing at the court today. A ruling is possible as soon as the end of the year under a fast-track procedure.”

Full article

Comments »