Bankers, governments and investors are starting to prepare for Greece to stop using the euro as its currency, a move that could spread turmoil throughout the global financial system. The worst-case scenario envisions governments defaulting on their debts, a run on European banks and a worldwide credit crunch reminiscent of the financial crisis in the…
Tag Archive for Debts
Latest Business Headlines
Why the Bailout in Spain Won’t Work – NYTimes.com
by Newswires • • 0 Comments
Customers of Spanish banks still have reason to worry about the solvency of their banks — and their country — making it reasonable for them to take their money from Spanish banks and send it to banks in safer countries like Germany. Indeed, the bailout makes it less likely Spain can pay back its debts…
Latest Business Headlines
Euro zone in decline, U.S. and China gain | Reuters
by Newswires • • 0 Comments
(Reuters) – All of the euro zone’s major economies are now in various states of decline, according to business surveys that heaped more pressure on Europe’s leaders to stop the region becoming the center of a new global crisis… The euro private sector economy shrank in May at the fastest pace in nearly three years,…
Latest Business Headlines
Why merging Spain’s troubled banks won’t fix the country’s debt crisis
by Newswires • • 0 Comments
Bank mergers solve the debt crisis. At least that is the strongly held view in Madrid, where Spanish prime minister Mariano Rajoy is considering yet another rescue, this time involving a possible merger of Ibercaja with rivals Liberbank and Caja3. It follows a longstanding policy, established by the previous socialist administration, that smashing together almost…
Latest Business Headlines
Bridgewater Assoc.’s Dalio Says It’s A Beautiful Deleveraging – Barrons.com
by Newswires • • 0 Comments
Barron’s: You’ve called the current phase of the U.S. deleveraging experience “beautiful.” Explain that, please. Dalio: … There are three ways to deleverage. We hear a lot about austerity. In other words, pull in your belt, spend less, and reduce debt. But austerity causes less spending and, because when you spend less, somebody earns less,…
Charles Hugh Smith, Contributors- Economic and Financial, Must Read
Money from Nothing: A Primer on Fake Wealth Creation and its Implications (Part 1)
by Charles Hugh Smith • • 0 Comments
Frequent contributor Zeus Y. explains how the financial system creates fake “wealth” from nothing and why the entire delusional scheme is imploding.
“Only God can create… value out of nothing”—Justice Martin V. Mahoney in First National…
Charles Hugh Smith, Contributors- Economic and Financial, Must Read
Has Derivatives Deleveraging Fueled the Stock Rally?
by Charles Hugh Smith • • 2 Comments
A mad scramble to avoid insolvency as Greek default becomes likely may be driving the rally in equities.
Deleveraging typically means selling assets to raise cash to meet margin calls or pay debts coming due. But there may be another twist to …
Bears Chat, Best of the Forums, Must Read
How do you say "bank run" in French?
by Bears Chat at The Wall Street Examiner • • 0 Comments
While the liabilities can in theory keep rising for ever within EMU, they signal grave imbalances, such as the North-South trade gap so long ignored until it proved fatal. They ultimately leave debtor central banks deep under water if the eurozone brea…
Bears Chat, Best of the Forums
To stop spiraling euro crisis, Germany must move quickly
by Bears Chat at The Wall Street Examiner • • 0 Comments
To stop spiraling euro crisis, Germany must move quickly
December 06, 2011
ONE WAY or another, Germany and other wealthy economies in the euro zone will have to bail out the weaker ones. And if Chancellor Angela Merkel of Germany wants Europe’s co…
Bears Chat, Best of the Forums, Must Read
Italy again pays more to borrow
by Bears Chat at The Wall Street Examiner • • 0 Comments
Italy again pays more to borrow
By COLLEEN BARRY, AP Business Writer – 53 minutes ago
MILAN (AP) — For the second time in as many market days, Italy paid sharply higher borrowing rates in an auction Monday, as investors continued to pressure the…
