Market Deja Vu? The Price of Gasoline Begins To Surge Out Of Control Again
posted 2/21/12
Michael Snyder: Does it cost you hundreds of dollars just to get to work each month? If it does, you are certainly not alone. There are millions of other Americans in the exact same boat. In recent years, the price of gas in the United States has gotten so outrageous that it has played a major factor in where millions of American families have decided to live and in what kind of vehicles they have decided to purchase. Many Americans that have very long commutes to work end up spending thousands of dollars on gas a year. Read more...
posted 2/21/12
Michael Snyder: Does it cost you hundreds of dollars just to get to work each month? If it does, you are certainly not alone. There are millions of other Americans in the exact same boat. In recent years, the price of gas in the United States has gotten so outrageous that it has played a major factor in where millions of American families have decided to live and in what kind of vehicles they have decided to purchase. Many Americans that have very long commutes to work end up spending thousands of dollars on gas a year. Read more...
Is Germany Secretly Maneuvering To Kick Greece Out Of The Euro?
posted 2/21/12
Michael Snyder: What in the world is going on in Europe (NYSEArca:VGK)? Each day things just seem to get stranger and stranger. We are being told that a “deal” for a second Greek bailout has been reached and that Greece will not default in March. But behind the scenes it seems clear that many politicians in Germany (NYSEArca:EWG) (and in the other northern European countries as well) would like to kick Greece out of the euro (NYSEArca:FXE). So what exactly is happening here? Well, it is complicated. The United States, along with other members of the international community, put a tremendous amount of pressure on Germany to bail out Greece one more time. Read more...
posted 2/21/12
Michael Snyder: What in the world is going on in Europe (NYSEArca:VGK)? Each day things just seem to get stranger and stranger. We are being told that a “deal” for a second Greek bailout has been reached and that Greece will not default in March. But behind the scenes it seems clear that many politicians in Germany (NYSEArca:EWG) (and in the other northern European countries as well) would like to kick Greece out of the euro (NYSEArca:FXE). So what exactly is happening here? Well, it is complicated. The United States, along with other members of the international community, put a tremendous amount of pressure on Germany to bail out Greece one more time. Read more...
SANTORUM'S SATAN WARNINGposted 2/21/12 (Img: stock.xchng)
"Satan has his sights on the United States of America!" Republican presidential hopeful Rick Santorum has declared. "Satan is attacking the great institutions of America, using those great vices of pride, vanity, and sensuality as the root to attack all of the strong plants that has so deeply rooted in the American tradition." Read more...
The Torture of the European Periphery
posted 2/21/12
The President of the European Central Bank, Mario Draghi, looks more and more like the bad guy from the B-rated horror movie series Saw with every passing day. Jigsaw was his name. Or maybe I should say "is" his name, because that series apparently never ends just like the tortured European sovereign debt and banking crises. For those unfamiliar, the premise behind the movie was that Jigsaw would create extremely uncomfortable situations for people, both psychologically and physically, and then watch how they react. Read more...
posted 2/21/12
The President of the European Central Bank, Mario Draghi, looks more and more like the bad guy from the B-rated horror movie series Saw with every passing day. Jigsaw was his name. Or maybe I should say "is" his name, because that series apparently never ends just like the tortured European sovereign debt and banking crises. For those unfamiliar, the premise behind the movie was that Jigsaw would create extremely uncomfortable situations for people, both psychologically and physically, and then watch how they react. Read more...
Suddenly, a Sharp Deterioration in the Job Market
posted 2/21/12
Wolf Richter www.testosteronepit.com
A hullabaloo broke out on February 3 after the BLS released its jobs report that indicated that a surprisingly robust 243,000 jobs were created in January, and that the unemployment rate had dropped to an even more surprising 8.3%. Cynics, academics, BLS heretics, BLS true believers, hype mongers, and politicians of all stripes waged a veritable media battle over these numbers that President Obama serenely trotted out as validation of his policies. Even Rush Limbaugh jumped into the fray. Rarely, if ever, had BLS numbers caused so much public disagreement—and scorn. But that’s history. Now we're in February, and unemployment, after a year of fairly consistent improvement, is suddenly showing a sharp deterioration. Read more...
posted 2/21/12
Wolf Richter www.testosteronepit.com
A hullabaloo broke out on February 3 after the BLS released its jobs report that indicated that a surprisingly robust 243,000 jobs were created in January, and that the unemployment rate had dropped to an even more surprising 8.3%. Cynics, academics, BLS heretics, BLS true believers, hype mongers, and politicians of all stripes waged a veritable media battle over these numbers that President Obama serenely trotted out as validation of his policies. Even Rush Limbaugh jumped into the fray. Rarely, if ever, had BLS numbers caused so much public disagreement—and scorn. But that’s history. Now we're in February, and unemployment, after a year of fairly consistent improvement, is suddenly showing a sharp deterioration. Read more...
back from the brink...againposted 2/21/12 (Img: stock.xchng)
BRUSSELS (AP) - The countries that use the euro pulled Greece back from an imminent and potentially catastrophic default on Tuesday, when they finally stitched together a euro130 billion ($170 billion) rescue they hope will also provide a lifeline to their common currency. Read more...
Some Doubt a Settlement Will End Mortgage Ills
posted 2/21/12
Even as government officials prepare to unveil new standards this week for how banks treat millions of Americans facing foreclosure, housing advocates and homeowners are skeptical the rules will be able to do something past efforts have not: provide a beleaguered borrower with one individual to help them navigate the mortgage maze. While the entire process of seeking a mortgage modification is complicated and time-consuming, few elements are as maddening as the inability to get through to a representative at the bank, or being asked for the same documents again and again. Read more...
posted 2/21/12
Even as government officials prepare to unveil new standards this week for how banks treat millions of Americans facing foreclosure, housing advocates and homeowners are skeptical the rules will be able to do something past efforts have not: provide a beleaguered borrower with one individual to help them navigate the mortgage maze. While the entire process of seeking a mortgage modification is complicated and time-consuming, few elements are as maddening as the inability to get through to a representative at the bank, or being asked for the same documents again and again. Read more...
Wal-Mart Profit Misses Forecast; Shares Down
posted 2/21/12
Wal-Mart Stores' holiday price cuts hurt its fourth-quarter profit and it plans to offer more discounts in the coming months, a move that is expected shrink margins further. The company's shares [WMT 59.90 -2.58 (-4.13%) ], up more than 29 percent since August, fell around 4 percent in as quarterly profits and sales fell short of Wall Street expectations. (Click here to get real-time quotes for Wal-Mart.) While the price cuts in the U.S. helped bring in more customers, those customers did not spend as much as investors had hoped. Read more...
posted 2/21/12
Wal-Mart Stores' holiday price cuts hurt its fourth-quarter profit and it plans to offer more discounts in the coming months, a move that is expected shrink margins further. The company's shares [WMT 59.90 -2.58 (-4.13%) ], up more than 29 percent since August, fell around 4 percent in as quarterly profits and sales fell short of Wall Street expectations. (Click here to get real-time quotes for Wal-Mart.) While the price cuts in the U.S. helped bring in more customers, those customers did not spend as much as investors had hoped. Read more...
Greece will have permanent monitoringposted 2/21/12 (Img: stock.xchng)
Eurozone finance ministers have agreed a second bailout for Greece after marathon talks in Brussels. Greece will get loans of more than 130bn euros (£110bn; $170bn) and have about 107bn of its debt written off. In return, it must slash its debt from 160% to 120.5% of GDP within eight years and accept a permanent EU economic monitoring mission. Read more...
Iran says pre-emptive strike on 'enemies' possible
posted 2/21/12
An Iranian military commander has said Iran would take pre-emptive action against its enemies if it felt its national interests were endangered. Mohammad Hejazi, deputy head of Iran's armed forces, made his comments to the Iranian Fars news agency. Iran is facing mounting international pressure over its controversial nuclear programme. On Monday it unveiled fresh military exercises in the south that it said was to protect its nuclear sites. Read more...
posted 2/21/12
An Iranian military commander has said Iran would take pre-emptive action against its enemies if it felt its national interests were endangered. Mohammad Hejazi, deputy head of Iran's armed forces, made his comments to the Iranian Fars news agency. Iran is facing mounting international pressure over its controversial nuclear programme. On Monday it unveiled fresh military exercises in the south that it said was to protect its nuclear sites. Read more...
Greek Rescue Leaves Europe Default Risk Alive
posted 2/21/12
Europe is still struggling to avoid the threat of default as investors warned Greece will soon risk violating the terms of its second bailout in three years. Seven months of negotiations ended in the pre-dawn hours in Brussels with Greece winning 130 billion euros ($172 billion) in aid it needs to avoid a March bankruptcy. Any respite may prove temporary after it signed up to a program of austerity and economic reform aimed at slashing debt to 120.5 percent of gross domestic product by 2020 from about 160 percent last year. Even with investors and central bankers chipping in to relieve the debt burden, economists from Citigroup Inc. to Commerzbank AG concluded Greece may again fail to deliver amid a fifth year of recession, looming elections and social unrest. The upshot could be the removal of aid and renewed debate over the merits of fresh assistance before year-end as policy makers shift toward doing more to inoculate the rest of Europe. Read more...
posted 2/21/12
Europe is still struggling to avoid the threat of default as investors warned Greece will soon risk violating the terms of its second bailout in three years. Seven months of negotiations ended in the pre-dawn hours in Brussels with Greece winning 130 billion euros ($172 billion) in aid it needs to avoid a March bankruptcy. Any respite may prove temporary after it signed up to a program of austerity and economic reform aimed at slashing debt to 120.5 percent of gross domestic product by 2020 from about 160 percent last year. Even with investors and central bankers chipping in to relieve the debt burden, economists from Citigroup Inc. to Commerzbank AG concluded Greece may again fail to deliver amid a fifth year of recession, looming elections and social unrest. The upshot could be the removal of aid and renewed debate over the merits of fresh assistance before year-end as policy makers shift toward doing more to inoculate the rest of Europe. Read more...
10 Signs That America Is Decomposing Right In Front Of Our Eyesposted 2/21/12 (Img: The Economic Collapse Blog)
The decay of society is so much harder to quantify than economic decline is. The government keeps lots of statistics on things like unemployment and inflation, but it really does not keep track of how sick and twisted people are becoming. Read more...
Lloyd Blankfein Seen Lunching In Boca With A Certain Former President
posted 2/20/12
Our Julie Zeveloff caught Goldman's Lloyd Blankfein lunching with Bill Clinton at the Boca Raton Resort And Country Club. Anyone know who the girl in sunglasses is, or perhaps the guy in the purple shirt? Any guesses what they were talking about? Read more...
posted 2/20/12
Our Julie Zeveloff caught Goldman's Lloyd Blankfein lunching with Bill Clinton at the Boca Raton Resort And Country Club. Anyone know who the girl in sunglasses is, or perhaps the guy in the purple shirt? Any guesses what they were talking about? Read more...
Surging Energy Prices Are Already Taking A Toll On One Area Of The Market
posted 2/20/12
The hot question on everyone's mind: Will higher energy prices slam the economy and the market? Well, here's part of your answer. From Nomura, some of the best and worst performing sub-sectors from the past week. Note the bottom two. Read more...
posted 2/20/12
The hot question on everyone's mind: Will higher energy prices slam the economy and the market? Well, here's part of your answer. From Nomura, some of the best and worst performing sub-sectors from the past week. Note the bottom two. Read more...
Another March to War?posted 2/20/12 (Img: stock.xchng)
As a journalist, there’s a buzz you can detect once the normal restraints in your business have been loosened, a smell of fresh chum in the waters, urging us down the road to war. Many years removed from the Iraq disaster, that smell is back, this time with Iran. Read more...
Down With the Presidency
posted 2/20/12
The modern institution of the presidency is the primary political evil Americans face, and the cause of nearly all our woes. It squanders the national wealth and starts unjust wars against foreign peoples that have never done us any harm. It wrecks our families, tramples on our rights, invades our communities, and spies on our bank accounts. It skews the culture toward decadence and trash. It tells lie after lie. Teachers used to tell school kids that anyone can be president. This is like saying anyone can go to Hell. It's not an inspiration; it's a threat. Read more...
posted 2/20/12
The modern institution of the presidency is the primary political evil Americans face, and the cause of nearly all our woes. It squanders the national wealth and starts unjust wars against foreign peoples that have never done us any harm. It wrecks our families, tramples on our rights, invades our communities, and spies on our bank accounts. It skews the culture toward decadence and trash. It tells lie after lie. Teachers used to tell school kids that anyone can be president. This is like saying anyone can go to Hell. It's not an inspiration; it's a threat. Read more...
Iran stops oil sales to British and French firmsposted 2/20/12 (Img: stock.xchng)
(Reuters) - Iran has stopped selling crude to British and French companies, the oil ministry said on Sunday, in a retaliatory measure against fresh EU sanctions on the Islamic state's lifeblood, oil. "Exporting crude to British and French companies has been stopped ... we will sell our oil to new customers," spokesman Alireza Nikzad was quoted as saying by the Ministry of Petroleum website. Read more...
Oil prices at nine month high after Iran dispute
posted 2/20/12
Oil prices jumped to nearly 105 dollars a barrel - a nine-month high - in Asia today, after Iran said it halted crude exports to Britain and France in a dispute over its nuclear programme. Benchmark crude was up 1.75 to 104.99 dollars a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. Earlier in the day it rose to 105.21, the highest since May. The contract rose 93 cents to settle at 103.24 a barrel in New York on Friday. Brent crude was up 1.52 at 121.10 dollars a barrel in London. Iran's oil ministry said yesterday it stopped crude shipments to British and French companies in an apparent pre-emptive blow against the European Union after the bloc imposed sanctions on Iran's crucial fuel exports. They included a freeze of the country's central bank assets and an oil embargo set to begin in July. Read more...
posted 2/20/12
Oil prices jumped to nearly 105 dollars a barrel - a nine-month high - in Asia today, after Iran said it halted crude exports to Britain and France in a dispute over its nuclear programme. Benchmark crude was up 1.75 to 104.99 dollars a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. Earlier in the day it rose to 105.21, the highest since May. The contract rose 93 cents to settle at 103.24 a barrel in New York on Friday. Brent crude was up 1.52 at 121.10 dollars a barrel in London. Iran's oil ministry said yesterday it stopped crude shipments to British and French companies in an apparent pre-emptive blow against the European Union after the bloc imposed sanctions on Iran's crucial fuel exports. They included a freeze of the country's central bank assets and an oil embargo set to begin in July. Read more...
Saudi Arabia Cuts Oil Output, Export: Industry Report
posted 2/20/12
The world’s top oil exporter, Saudi Arabia, appears to have cut both its oil production and export in December, according to the latest update by the Joint Organizations Data Initiative (JODI), an official source of oil production, consumption and export data. The OPEC heavyweight saw production decline by 237,000 barrels per day (bpd) from three-decade highs of 10.047 million bpd in November, the JODI data showed on Sunday. The draw-down was sharper for the actual amount exported, declining by 440,000 bpd, or 5.6 percent, to come in at 7.364 million bpd, the data also showed. The level would still be similar to exports after a steep ramp-up last June. In its monthly report on February 10, the IEA put Saudi Arabia’s production number for December slightly lower at 9.55 million bpd, a disparity of 260,000 bpd versus the JODI data. Read more...
posted 2/20/12
The world’s top oil exporter, Saudi Arabia, appears to have cut both its oil production and export in December, according to the latest update by the Joint Organizations Data Initiative (JODI), an official source of oil production, consumption and export data. The OPEC heavyweight saw production decline by 237,000 barrels per day (bpd) from three-decade highs of 10.047 million bpd in November, the JODI data showed on Sunday. The draw-down was sharper for the actual amount exported, declining by 440,000 bpd, or 5.6 percent, to come in at 7.364 million bpd, the data also showed. The level would still be similar to exports after a steep ramp-up last June. In its monthly report on February 10, the IEA put Saudi Arabia’s production number for December slightly lower at 9.55 million bpd, a disparity of 260,000 bpd versus the JODI data. Read more...
Second Greek Bailout in Reach Despite Funding Gapsposted 2/20/12 (Img: stock.xchng)
Euro zone finance ministers inched towards approving a second bailout for debt-laden Greece on Monday that will resolve Athens' immediate repayment needs but seems unlikely to remedy the dire state of the nation's shattered economy. Agreement on a 130-billion-euro rescue package on draconian conditions would draw a line under months of uncertainty that has shaken the currency bloc, averting imminent bankrupcty, although work remained to make the numbers add up. Read more...
Eurozone Ministers Meet Monday on Next Step for Tottering Greece
posted 2/20/12
The isosceles theorem put forward by the Greek mathematician Euclid became a test in medieval times of one's ability to master more difficult matters. Greece this week faces such a test. It must convince the European Union, the International Monetary Fund and the European Central Bank of three things: fiscal measures will put its debt load onto a sustainable path heading toward 120 percent of gross domestic product by 2020; Greek politicians will abide by deep budget cuts even after their April elections; and a 200 billion euro debt swap with private creditors can be completed by March 20, the deadline for Greece to make 14.5 billion euros in debt payments. Only if Athens meets these tests will Greece win a second round of international loans from the EU and IMF to avert a disorderly default, financial officials say. A decision is expected on Monday when eurozone finance ministers meet. Read more...
posted 2/20/12
The isosceles theorem put forward by the Greek mathematician Euclid became a test in medieval times of one's ability to master more difficult matters. Greece this week faces such a test. It must convince the European Union, the International Monetary Fund and the European Central Bank of three things: fiscal measures will put its debt load onto a sustainable path heading toward 120 percent of gross domestic product by 2020; Greek politicians will abide by deep budget cuts even after their April elections; and a 200 billion euro debt swap with private creditors can be completed by March 20, the deadline for Greece to make 14.5 billion euros in debt payments. Only if Athens meets these tests will Greece win a second round of international loans from the EU and IMF to avert a disorderly default, financial officials say. A decision is expected on Monday when eurozone finance ministers meet. Read more...
Bob Janjuah: "Markets Are So Rigged By Policy Makers That I Have No Meaningful Insights To Offer"
posted 2/20/12
Bob Janjuah is back.
Bob's World: Monetary Anarchy
Since my last note from early January I have spent the last few weeks assessing data and price action, as well as spending a lot of time talking to clients and trying to analyse the words and deeds of policymakers. In no particular order, my takeaways are as follows: 1 – Greece (and the whole eurozone story) continues to lurch about, seemingly perpetually, from Farce to Tragedy. Policy seems to be focused on protecting and preserving vested interests, with little consideration given to the dreadful conditions the people of Greece and other "peripherals" are being forced to live with. However, it seems that eurozone leaders may be about to pour even more taxpayer money down into the black hole that is Greece, primarily to help the banks in Europe, at the expense of perhaps a decade of suffering by the Greek populace. For my part, I am now consigning the Greece/Peripherals/Eurozone story to the box marked "self-serving political debacle" and from here on in I will simplify Europe as follows: Until, and unless, Germany signs up to full fiscal union, a eurozone breakup is likely. Read more...
posted 2/20/12
Bob Janjuah is back.
Bob's World: Monetary Anarchy
Since my last note from early January I have spent the last few weeks assessing data and price action, as well as spending a lot of time talking to clients and trying to analyse the words and deeds of policymakers. In no particular order, my takeaways are as follows: 1 – Greece (and the whole eurozone story) continues to lurch about, seemingly perpetually, from Farce to Tragedy. Policy seems to be focused on protecting and preserving vested interests, with little consideration given to the dreadful conditions the people of Greece and other "peripherals" are being forced to live with. However, it seems that eurozone leaders may be about to pour even more taxpayer money down into the black hole that is Greece, primarily to help the banks in Europe, at the expense of perhaps a decade of suffering by the Greek populace. For my part, I am now consigning the Greece/Peripherals/Eurozone story to the box marked "self-serving political debacle" and from here on in I will simplify Europe as follows: Until, and unless, Germany signs up to full fiscal union, a eurozone breakup is likely. Read more...
CBO: US in Longest Stretch of High Unemployment Since Depressionposted 2/20/12 (Img: stock.xchng)
The United States is experiencing the longest stretch of high unemployment since the Great Depression, according to a new study by the Congressional Budget Office. U.S. unemployment in the United States has exceeded 8 percent since February 2009, making the past three years the longest stretch of high unemployment in this country since the Great Depression, writes CBO Director Douglas Elmendorf on the CBO Director’s Blog site. Read more...
Ron Paul: Why Can’t We ‘Put Into Our Body Whatever We Want?’posted 2/16/12 (Img: )
VANCOUVER, Wash. (AP) — Republican presidential candidate Ron Paul decried the “war on drugs” Thursday night, telling supporters in Washington state that people should be able to make their own decisions on such matters. Read more...
Global Financial Systemic Risk Is Rising - Again
posted 2/17/12
Credit markets in Europe remain significant underperformers relative to equities this week, despite some short-covering yesterday that narrowed the gap. Global Financial Systemic Risk is rising again - dramatically. It seemed that the dramatic shift from early to mid-week was enough to scare some action back into the market and we can't help but feel that the rallies in Spanish and Italian govvies (on what was very likely thin trading) was all central banks, all the time. Today saw stocks rally in Europe to new post-NFP highs while credit leaked wider off its open and closed on a weak tone into the US long-weekend. Read more...
posted 2/17/12
Credit markets in Europe remain significant underperformers relative to equities this week, despite some short-covering yesterday that narrowed the gap. Global Financial Systemic Risk is rising again - dramatically. It seemed that the dramatic shift from early to mid-week was enough to scare some action back into the market and we can't help but feel that the rallies in Spanish and Italian govvies (on what was very likely thin trading) was all central banks, all the time. Today saw stocks rally in Europe to new post-NFP highs while credit leaked wider off its open and closed on a weak tone into the US long-weekend. Read more...
Jim Rogers: Buy Assets That Thrive When Governments Failposted 2/17/12 (Img: stock.xchng)
Investors are better off ignoring what governments are saying and instead buy assets that thrive when politicians fail, which are hard assets like commodities, says international investor Jim Rogers. Read more...
Iran oil sanction could jump oil to $200: Societe Generale
posted 2/17/12
Traders are bidding up crude by as much as 15 percent on the assumption that conflict with Iran will lead to the biggest disruption to the Persian Gulf oil supplies since 1991, according to Societe Generale SA, which says prices may jump to $200 should cargoes be interrupted. Brent, the benchmark grade for more than half the world’s oil, is trading for $5 to $15 a barrel more than it would without the standoff with Iran. UBS AG, Switzerland’s biggest bank, says the risk of a confrontation that would shut off shipments through the Persian Gulf has added about $10 to the price of crude. Read more...
posted 2/17/12
Traders are bidding up crude by as much as 15 percent on the assumption that conflict with Iran will lead to the biggest disruption to the Persian Gulf oil supplies since 1991, according to Societe Generale SA, which says prices may jump to $200 should cargoes be interrupted. Brent, the benchmark grade for more than half the world’s oil, is trading for $5 to $15 a barrel more than it would without the standoff with Iran. UBS AG, Switzerland’s biggest bank, says the risk of a confrontation that would shut off shipments through the Persian Gulf has added about $10 to the price of crude. Read more...
Pain at the Pump and in the Wallet: Surging Gas Prices Fuel Inflation Spikeposted 2/17/12 (Img: stock.xchng)
U.S. gasoline prices jumped 0.9 percent in January, pushing overall consumer prices up at their fastest clip in four months and offering a reminder of the risks energy costs could pose to the economic recovery. Read more...
US presses EU to close SWIFT network to Iran
posted 2/17/12
The United States is urging the European Union to block Iranian banks’ access to SWIFT, the global interbank transfer network, to step up pressure on Tehran, a US official said Thursday. The US Treasury’s sanctions chief David Cohen raised the issue in talks in Brussels earlier this month, the official said, as Washington, Europe and their allies seek to isolate Iran to force it to halt its alleged nuclear weapons program. “While there he discussed the issue of SWIFT providing services to designated Iranian banks and urged the EU to take action on the issue,” said the official, who spoke on condition of anonymity. Belgium-based SWIFT — the Society for Worldwide Interbank Financial Telecommunication — is a cooperative of more than 9,000 financial institutions that serves as the main conduit for inter-bank transactions around the world. Read more...
posted 2/17/12
The United States is urging the European Union to block Iranian banks’ access to SWIFT, the global interbank transfer network, to step up pressure on Tehran, a US official said Thursday. The US Treasury’s sanctions chief David Cohen raised the issue in talks in Brussels earlier this month, the official said, as Washington, Europe and their allies seek to isolate Iran to force it to halt its alleged nuclear weapons program. “While there he discussed the issue of SWIFT providing services to designated Iranian banks and urged the EU to take action on the issue,” said the official, who spoke on condition of anonymity. Belgium-based SWIFT — the Society for Worldwide Interbank Financial Telecommunication — is a cooperative of more than 9,000 financial institutions that serves as the main conduit for inter-bank transactions around the world. Read more...
Greece feels sovereignty slip away and braces for savage cuts
posted 2/17/12
Greece's capacity to take the important decisions on its future is becoming very limited as decision-making on such matters as the choice of the Greek prime minister, the date for the next general election and the supervision of the expenditure of the bailout shifts to Berlin and Brussels. Greeks are now about to be hit by the sixth austerity package in five years. Acrimony reached a new peak in the last few days, as the German Finance Minister Wolfgang Schaeuble expressed doubts about Greece sticking to its promises and saying its appetite for foreign funds was like "a bottomless pit". "Who is Mr Schaeuble to insult Greece?" the Greek President Karolos Papoulias said furiously. He berated other eurozone critics, asking: "Who are the Dutch? Who are the Finnish?" But, despite openly expressed hostility, Greek political leaders and the public see little alternative but to submit. George Tzogopoulos, of the Bodossakis, Foundation think tank, an expert on Greek public opinion and its response to the financial crisis, said that people's attitudes are more realistic on the question of meeting the demands of the Troika – the EU, European Central Bank and IMF – than they were four months ago. Read more...
posted 2/17/12
Greece's capacity to take the important decisions on its future is becoming very limited as decision-making on such matters as the choice of the Greek prime minister, the date for the next general election and the supervision of the expenditure of the bailout shifts to Berlin and Brussels. Greeks are now about to be hit by the sixth austerity package in five years. Acrimony reached a new peak in the last few days, as the German Finance Minister Wolfgang Schaeuble expressed doubts about Greece sticking to its promises and saying its appetite for foreign funds was like "a bottomless pit". "Who is Mr Schaeuble to insult Greece?" the Greek President Karolos Papoulias said furiously. He berated other eurozone critics, asking: "Who are the Dutch? Who are the Finnish?" But, despite openly expressed hostility, Greek political leaders and the public see little alternative but to submit. George Tzogopoulos, of the Bodossakis, Foundation think tank, an expert on Greek public opinion and its response to the financial crisis, said that people's attitudes are more realistic on the question of meeting the demands of the Troika – the EU, European Central Bank and IMF – than they were four months ago. Read more...
Greeks rage at erosion of sovereignty while leaders haggle over dealposted 2/17/12 (Img: stock.xchng)
Greek leaders express frustration and anger at the rapid erosion of their country's sovereignty by German and eurozone leaders, but see no alternative but to accept quasi-colonial control in return for the €130bn (£110bn) rescue package. Read more...
UK to take major role in making new 'eurodrones'
posted 2/17/12
Plans to build a new generation of "fighter drones" that can wage war by remote control are set to be agreed today by Britain and France. David Cameron and President Nicolas Sarkozy are preparing to put their recent tensions behind them to launch proposals for the pilotless stealth aircraft at a summit in Paris. In a second agreement, they will promise closer co-operation on civil nuclear power. Western nations increasingly regard the deployment of drones to launch surgical strikes on targets as a way of keeping military casualties to a minimum. Several senior al-Qa'ida figures have been killed by unmanned American drones flying over Pakistan, while British drone missions could begin within months over Afghanistan. Critics claim the aircraft can cause "collateral damage" among civilians and that the low risk to service personnel from their use can encourage countries to turn to military force rather than diplomacy. Read more...
posted 2/17/12
Plans to build a new generation of "fighter drones" that can wage war by remote control are set to be agreed today by Britain and France. David Cameron and President Nicolas Sarkozy are preparing to put their recent tensions behind them to launch proposals for the pilotless stealth aircraft at a summit in Paris. In a second agreement, they will promise closer co-operation on civil nuclear power. Western nations increasingly regard the deployment of drones to launch surgical strikes on targets as a way of keeping military casualties to a minimum. Several senior al-Qa'ida figures have been killed by unmanned American drones flying over Pakistan, while British drone missions could begin within months over Afghanistan. Critics claim the aircraft can cause "collateral damage" among civilians and that the low risk to service personnel from their use can encourage countries to turn to military force rather than diplomacy. Read more...
Hopes rise for Greek deal, but anger grows in euro zone
posted 2/17/12
* Athens finds extra budget savings
* Optimism grows deal can be signed on Monday
* Officials say report shows Greece will miss 2020 target
By Lefteris Papadimas and Jan Strupczewski
ATHENS/BRUSSELS, Feb 17 (Reuters) - Optimism is growing that Greece has finally done enough to secure a second bailout after it set out extra budget savings, but the moves failed to ease tensions with EU paymaster Germany. Time is running out for Greece to seal the 130 billion euro ($170 billion) rescue and avoid bankruptcy, but Greek officials hope euro zone finance ministers will sign the deal off on Monday - a month before Athens needs the money to make 14.5 billion euros of debt repayments due on March 20. Read more...
posted 2/17/12
* Athens finds extra budget savings
* Optimism grows deal can be signed on Monday
* Officials say report shows Greece will miss 2020 target
By Lefteris Papadimas and Jan Strupczewski
ATHENS/BRUSSELS, Feb 17 (Reuters) - Optimism is growing that Greece has finally done enough to secure a second bailout after it set out extra budget savings, but the moves failed to ease tensions with EU paymaster Germany. Time is running out for Greece to seal the 130 billion euro ($170 billion) rescue and avoid bankruptcy, but Greek officials hope euro zone finance ministers will sign the deal off on Monday - a month before Athens needs the money to make 14.5 billion euros of debt repayments due on March 20. Read more...
Short term down ,long term up. If you believe itposted 2/16/12 (Img: stock.xchng)
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT
SEASONALLY ADJUSTED DATA
In the week ending February 11, the advance figure for seasonally adjusted initial claims was 348,000, a decrease of 13,000 from the previous week's revised figure of 361,000. The 4-week moving average was 365,250, a decrease of 1,750 from the previous week's revised average of 367,000. Read more...
‘Perverted Logic’ May Drive Gas ‘Well Above’ $4, Energy Expert Schork Says
posted 2/16/12
Gasoline prices will soar "well above" $4 a gallon and possibly higher this summer due to "perverted logic" as rising crude prices force refiners to close their doors, further cutting supply and pushing prices higher, says commodities research analyst and trader Stephen Schork. Gasoline prices are hovering around $3.50 a gallon, higher than they normally are this time of year, according to the AAA Fuel Gauge Report. In 2008, when gasoline prices broke records, average prices didn't hit $3.50 a gallon until April 21, which is more than two months away, the Los Angeles Times reports, citing the AAA Fuel Gauge Report data. Iranian threats to close down the Strait of Hormuz and crimp the world of crude supply is sending global oil prices climbing. Read more...
posted 2/16/12
Gasoline prices will soar "well above" $4 a gallon and possibly higher this summer due to "perverted logic" as rising crude prices force refiners to close their doors, further cutting supply and pushing prices higher, says commodities research analyst and trader Stephen Schork. Gasoline prices are hovering around $3.50 a gallon, higher than they normally are this time of year, according to the AAA Fuel Gauge Report. In 2008, when gasoline prices broke records, average prices didn't hit $3.50 a gallon until April 21, which is more than two months away, the Los Angeles Times reports, citing the AAA Fuel Gauge Report data. Iranian threats to close down the Strait of Hormuz and crimp the world of crude supply is sending global oil prices climbing. Read more...
Moody's Threatens to Downgrade Morgan Stanley, 16 Other Global Banks, Securities Firms
posted 2/16/12
Moody's warned on Thursday it may cut the credit ratings of 17 global and 114 European financial institutions in another sign the impact of the eurozone government debt crisis is spreading throughout the global financial system. It was reviewing the long-term ratings and standalone credit assessments of a range of banks, Moody's added. Markets were unaffected by the Moody's announcement. "Capital markets firms are confronting evolving challenges, such as more fragile funding conditions, wider credit spreads, increased regulatory burdens and more difficult operating conditions," the ratings agency said in a statement. Read more...
posted 2/16/12
Moody's warned on Thursday it may cut the credit ratings of 17 global and 114 European financial institutions in another sign the impact of the eurozone government debt crisis is spreading throughout the global financial system. It was reviewing the long-term ratings and standalone credit assessments of a range of banks, Moody's added. Markets were unaffected by the Moody's announcement. "Capital markets firms are confronting evolving challenges, such as more fragile funding conditions, wider credit spreads, increased regulatory burdens and more difficult operating conditions," the ratings agency said in a statement. Read more...
Bankster Swapposted 2/16/12 (Img: stock.xchng)
(Reuters) - World Bank President Robert Zoellick said on Wednesday he will step down in June and Washington pledged to put a replacement candidate forward within weeks for a job that has always gone to an American. Read more...
Summers, Clinton Said to Be Lead Contenders for World Bank
posted 2/16/12
U.S. Secretary of State Hillary Clinton and former White House economic adviser Lawrence Summers are two leading candidates to succeed World Bank President Robert Zoellick when he leaves in June, said two people familiar with Obama administration discussions. The U.S. promised a candidate “in the coming weeks” for the post that has always been held by one of its citizens, while officials from Brazil and Mexico vowed to make the selection process open to emerging markets. Read more...
posted 2/16/12
U.S. Secretary of State Hillary Clinton and former White House economic adviser Lawrence Summers are two leading candidates to succeed World Bank President Robert Zoellick when he leaves in June, said two people familiar with Obama administration discussions. The U.S. promised a candidate “in the coming weeks” for the post that has always been held by one of its citizens, while officials from Brazil and Mexico vowed to make the selection process open to emerging markets. Read more...
First Freedom Watch Cancelled, Now Colbert Suspended?
posted 2/16/12
It appears that slowly but surely the NDAA equivalent for the less than compliant on air mainstream media is picking up steam. First it was Napolitano's Freedom Watch getting cancelled by Fox (ostensibly for his endorsement of Ron Paul but who knows) some days ago, and now Politico reports that that political uber-lampoon Stephen Colbert has been also temporarily "suspended". From Politico: "The late-night comedy program hosted by Stephen Colbert will suspend production for at least two days this week, POLITICO has confirmed. Read more...
posted 2/16/12
It appears that slowly but surely the NDAA equivalent for the less than compliant on air mainstream media is picking up steam. First it was Napolitano's Freedom Watch getting cancelled by Fox (ostensibly for his endorsement of Ron Paul but who knows) some days ago, and now Politico reports that that political uber-lampoon Stephen Colbert has been also temporarily "suspended". From Politico: "The late-night comedy program hosted by Stephen Colbert will suspend production for at least two days this week, POLITICO has confirmed. Read more...
Forbes: Bernanke 'Supreme Socialist'posted 2/16/12 (Img: stock.xchng)
Federal Reserve Chairman Ben Bernanke is running the economy in such a heavy-handed manner that he more resembles a socialist strongman reminiscent of the Soviet Union than the head of the world's largest and most iconic of capitalist economies, former GOP presidential hopeful and publisher Steve Forbes writes. Read more...
"Lost In Construction" - Relative Difference Between Housing Starts And Completions Hits Record
posted 2/16/12
While one can discuss seasonal factors, such as abnormally warm weather, as a driver of today's beat in Housing Starts, a far less noted number for headline purposes is the other side of the equation - Housing Completions. Because after all, every house that is started has to be completed at some point. One look at the chart below, shows why completions is quietly ignored, as it presents a far less optimistic picture about the housing market. Indeed, printing at 530k seasonally adjusted annualized units, the completions number was just the second lowest in decades, better only than the 509K from January 2011. And where this becomes rather glaring is when looking at the relative, or percentage, spread between Starts and Completions: at 31.9%, this was the highest in, well, as far as our data series goes back to. Read more...
posted 2/16/12
While one can discuss seasonal factors, such as abnormally warm weather, as a driver of today's beat in Housing Starts, a far less noted number for headline purposes is the other side of the equation - Housing Completions. Because after all, every house that is started has to be completed at some point. One look at the chart below, shows why completions is quietly ignored, as it presents a far less optimistic picture about the housing market. Indeed, printing at 530k seasonally adjusted annualized units, the completions number was just the second lowest in decades, better only than the 509K from January 2011. And where this becomes rather glaring is when looking at the relative, or percentage, spread between Starts and Completions: at 31.9%, this was the highest in, well, as far as our data series goes back to. Read more...
Greece Debt Deal Talks Devolve Into 'Unedifying Playground Spat'
posted 2/16/12
BRUSSELS — A European diplomat says current plans to help Greece with its debt load would still leave the country with debt of 129 percent of economic output in 2020. That's far above the 120 percent level that eurozone leaders in October said was the maximum that could be considered sustainable. The diplomat says international debt inspectors estimate in a new report that Greece's promised austerity efforts, a euro100 billion ($130 billion) debt relief from private investors and a euro130 billion ($169 billion) bailout fail to reduce the country's debt sufficiently. He says several options were being discussed to bring the debt closer to the 2020 target, including help from the European Central Bank, lower interest rates on bailout loans, and helping Greece with an upcoming euro5.5 billion interest payment to bondholders. Read more...
posted 2/16/12
BRUSSELS — A European diplomat says current plans to help Greece with its debt load would still leave the country with debt of 129 percent of economic output in 2020. That's far above the 120 percent level that eurozone leaders in October said was the maximum that could be considered sustainable. The diplomat says international debt inspectors estimate in a new report that Greece's promised austerity efforts, a euro100 billion ($130 billion) debt relief from private investors and a euro130 billion ($169 billion) bailout fail to reduce the country's debt sufficiently. He says several options were being discussed to bring the debt closer to the 2020 target, including help from the European Central Bank, lower interest rates on bailout loans, and helping Greece with an upcoming euro5.5 billion interest payment to bondholders. Read more...
Foreclosures on the Rise Againposted 2/16/12 (Img: Dees)
After a year-long reprieve from rising foreclosures, the numbers are going up again. One in every 624 U.S. households received a foreclosure filing in January, up 3 percent from the previous month, according to a new report from RealtyTrac. Foreclosure activity froze in many states in 2011, due to processing delays after fraud, or so-called "Robo-signing," were uncovered in the fall of 2010. The thaw is now on. Read more...
Eurozone crisis: contingency plans in place for Greek debt defaultposted 2/15/12 (Img: stock.xchng)
The European commission insisted on Wednesday it wants Greece to remain in the euro, but also confirmed that it has extensively analysed the potential impact of Athens defaulting on its national debt. "The consequences would be devastating for Greek citizens and particularly for the most vulnerable. Consequences would be felt throughout the eurozone and beyond," predicted Amadeu Altafaj, spokesman for Europe's commissioner for economic and monetary affairs, Olli Rehn. Read more...
A Better "Halftime In America" Commercial
posted 2/15/12
Clint Eastwood drew a lot of ire, rhetoric, and subsequent explanations as to the real motives behind his Superbowl halftime commercial. Frankly, the commercial could and should have been much better. One proposal for what a less cynical and thus far more sincere "Halftime in America" commercial should be comes from Omid Malekan, creator of the original Bears (explaining QE for the "rest of us") cartoon. We believe this is what should have been showed during the superbowl. And certainly not presented under a Chrysler umbrella. Read more...
posted 2/15/12
Clint Eastwood drew a lot of ire, rhetoric, and subsequent explanations as to the real motives behind his Superbowl halftime commercial. Frankly, the commercial could and should have been much better. One proposal for what a less cynical and thus far more sincere "Halftime in America" commercial should be comes from Omid Malekan, creator of the original Bears (explaining QE for the "rest of us") cartoon. We believe this is what should have been showed during the superbowl. And certainly not presented under a Chrysler umbrella. Read more...
Russia Dumps Treasurys For 14 Consecutive Months; China Slashes Holdings To Lowest In Over A Year
posted 2/15/12
Today's disappointing TIC report confirmed what Zero Hedge reported back in January, namely the record dumping of Treasurys by foreign entities as tracked by the Fed's custodial account. And while we will spare you the details of the report (found here), two things bear pointing out: the very demonstrative selling of US paper by Russia continues, and is now in its 14th consecutive month (as has been reported here consistently), as total USTs in Putin's possession declined to a fresh multi-year low of $88.4 billion, half of the $176 billion in October 2010. Also confirming that the Asian anti-USD axis is now one which consists of at least Russia and China (and certainly Iran), was the stepwise dump of US paper by Beijing which sold $32 billion in US bonds in December, bringing its total to a new post 2010 low of $1100.7 billion. And lastly, this was not isolated to just these two: in December the grand total of US Treasury holding by foreigners declined from $4.75 trillion to $4.732 trillion. The question then is: just what are China and Russia buying (ahem stockpiling) with all the dollars that are not recycled back into Treasurys? Read more...
posted 2/15/12
Today's disappointing TIC report confirmed what Zero Hedge reported back in January, namely the record dumping of Treasurys by foreign entities as tracked by the Fed's custodial account. And while we will spare you the details of the report (found here), two things bear pointing out: the very demonstrative selling of US paper by Russia continues, and is now in its 14th consecutive month (as has been reported here consistently), as total USTs in Putin's possession declined to a fresh multi-year low of $88.4 billion, half of the $176 billion in October 2010. Also confirming that the Asian anti-USD axis is now one which consists of at least Russia and China (and certainly Iran), was the stepwise dump of US paper by Beijing which sold $32 billion in US bonds in December, bringing its total to a new post 2010 low of $1100.7 billion. And lastly, this was not isolated to just these two: in December the grand total of US Treasury holding by foreigners declined from $4.75 trillion to $4.732 trillion. The question then is: just what are China and Russia buying (ahem stockpiling) with all the dollars that are not recycled back into Treasurys? Read more...
Greece battles to salvage bailout packageposted 2/15/12 (Img: stock.xchng)
(Reuters) - Greece's leaders battled to salvage a new 130-billion-euro ($170 billion) EU/IMF bailout on Wednesday, rejecting doubts over their commitment to a punishing austerity package just hours before a conference call of euro zone finance ministers. Read more...
Soros Raises Gold Fund Stake as Paulson Joins Tudor in Selloff
posted 2/15/12
Paulson & Co., the hedge fund founded by billionaire John Paulson, cut its stake in the SPDR Gold Trust for the second straight quarter, while billionaire investor George Soros increased his holdings. Paulson held 17.3 million shares in the exchange-traded fund backed by bullion as of Dec. 31, 15 percent less than the 20.3 million on Sept. 30, Securities and Exchange Commission filings showed. His holdings fell 45 percent from end-June, the first reduction in more than two years. He is still the biggest stakeholder. Vinik Asset Management LP, Tudor Investment Corp. and SAC Capital Advisors LP also sold shares. Lone Pine Capital LLC added holdings. Read more...
posted 2/15/12
Paulson & Co., the hedge fund founded by billionaire John Paulson, cut its stake in the SPDR Gold Trust for the second straight quarter, while billionaire investor George Soros increased his holdings. Paulson held 17.3 million shares in the exchange-traded fund backed by bullion as of Dec. 31, 15 percent less than the 20.3 million on Sept. 30, Securities and Exchange Commission filings showed. His holdings fell 45 percent from end-June, the first reduction in more than two years. He is still the biggest stakeholder. Vinik Asset Management LP, Tudor Investment Corp. and SAC Capital Advisors LP also sold shares. Lone Pine Capital LLC added holdings. Read more...
Angela Merkel depicted as Nazi in Greece, as anti-German sentiment growsposted 2/15/12 (Img: stock.xchng)
In Greece, old stereotypes about Germany are coming back with a vengeance. Read more...
Coin Costs in the Crosshairs in Obama Budget
posted 2/15/12
The U.S. Mint is battled an unexpected consequence of the global commodities grab: There’s almost no way to make pennies and nickels for less than the face value of the coins. Demand for the metals in our coins — pennies are mostly zinc covered in copper and nickels are, ironically, mostly copper covered in nickel — has pushed up their cost to $100 billion a year each to produce, reports CNNMoney. Now the Obama administration is trying to find even cheaper metals to cut production costs. A penny costs the mint 2.4 cents to create, while nickels cost taxpayers 11.2 cents each. Read more...
posted 2/15/12
The U.S. Mint is battled an unexpected consequence of the global commodities grab: There’s almost no way to make pennies and nickels for less than the face value of the coins. Demand for the metals in our coins — pennies are mostly zinc covered in copper and nickels are, ironically, mostly copper covered in nickel — has pushed up their cost to $100 billion a year each to produce, reports CNNMoney. Now the Obama administration is trying to find even cheaper metals to cut production costs. A penny costs the mint 2.4 cents to create, while nickels cost taxpayers 11.2 cents each. Read more...
David Rosenberg - "Let's Get Real - Risks Are Looming Big Time"
posted 2/15/12
Earlier, you heard it from Jeff Gundlach, whom one can not accuse (at least not yet) of sleeping on his laurels and/or being a broken watch, who told his listeners to "reduce risk right now" especially in the frenzied momo stocks. Now, it is David Rosenberg's turn who tries to refute the presiding transitory dogma that 'things are ok" and that a Greek default will be contained (no, it won't be, and if nobody remembers what happened in 2008, here is a reminder of everything one needs to know ahead of the "controlled", whatever that is, Greek default). Alas, it will be to no avail, as one of the dominant features of the lemming herd is that it will gladly believe the grandest of delusions well past the ledge. On the other hand, they don't call it the pain trade for nothing. Read more...
posted 2/15/12
Earlier, you heard it from Jeff Gundlach, whom one can not accuse (at least not yet) of sleeping on his laurels and/or being a broken watch, who told his listeners to "reduce risk right now" especially in the frenzied momo stocks. Now, it is David Rosenberg's turn who tries to refute the presiding transitory dogma that 'things are ok" and that a Greek default will be contained (no, it won't be, and if nobody remembers what happened in 2008, here is a reminder of everything one needs to know ahead of the "controlled", whatever that is, Greek default). Alas, it will be to no avail, as one of the dominant features of the lemming herd is that it will gladly believe the grandest of delusions well past the ledge. On the other hand, they don't call it the pain trade for nothing. Read more...
Hank Paulson: We Need a New Tax System to Make US Competitiveposted 2/15/12 (Img: stock.xchng)
The United States needs a new tax system that both increases revenues and makes the country more competitive, says former Treasury Secretary Hank Paulson. "There's nothing that frustrates me more than the tax debate, because I've studied the tax system. And there's no doubt we need more tax revenues. Of course we need more tax revenues, they're 15 percent of GDP now, they've averaged more than 18 percent for 40 years," Paulson tells CNBC. Read more...
This Is Why Military Hawks Are Leading The Charge For Drug Legalization In Latin America
posted 2/15/12
• A version of this post ran on the author's blog, bloggingsbyboz.com. The views expressed are the author's own. If you were to place Felipe Calderon, Juan Manuel Santos, and Otto Perez Molina on the hemisphere's outdated left-right ideological spectrum, all three are well on the right side of the center line. All three are pro-military and all three have deployed their military forces to combat drug traffickers and criminal organizations. All three are strong allies of the United States. And in the past few months, all three have raised the real possibility of decriminalization of drugs in their countries and the region. Read more...
posted 2/15/12
• A version of this post ran on the author's blog, bloggingsbyboz.com. The views expressed are the author's own. If you were to place Felipe Calderon, Juan Manuel Santos, and Otto Perez Molina on the hemisphere's outdated left-right ideological spectrum, all three are well on the right side of the center line. All three are pro-military and all three have deployed their military forces to combat drug traffickers and criminal organizations. All three are strong allies of the United States. And in the past few months, all three have raised the real possibility of decriminalization of drugs in their countries and the region. Read more...
Blankfein the Wrong Spokesman for Gay Rights
posted 2/15/12
Courtesy of good friend David Sirota, who has also written on the subject, I heard today that the Human Rights Campaign, the organization that advocates for equal rights for gay, lesbian, and transgender people, has named Goldman Sachs CEO Lloyd Blankfein its “national corporate spokesman for same-sex marriage.” This is an extremely unfortunate error by the HRC, which in making Blankfein a spokesman for this important political campaign has allowed one of the most relentless enemies of the poor and the disadvantaged to use the gay and lesbian community to buy moral credibility. What’s most distressing about this decision is that the HRC has decided to honor and celebrate the CEO of a company with an extensive record of promoting inequality and preying upon ordinary working people. Read more...
posted 2/15/12
Courtesy of good friend David Sirota, who has also written on the subject, I heard today that the Human Rights Campaign, the organization that advocates for equal rights for gay, lesbian, and transgender people, has named Goldman Sachs CEO Lloyd Blankfein its “national corporate spokesman for same-sex marriage.” This is an extremely unfortunate error by the HRC, which in making Blankfein a spokesman for this important political campaign has allowed one of the most relentless enemies of the poor and the disadvantaged to use the gay and lesbian community to buy moral credibility. What’s most distressing about this decision is that the HRC has decided to honor and celebrate the CEO of a company with an extensive record of promoting inequality and preying upon ordinary working people. Read more...
Greek Economy Stuck in Deep Recession
posted 2/14/12
(ATHENS) — The Greek economy remained stuck in a deep recession in the fourth quarter, according to official figures released Tuesday that confirm the painful effects of austerity reforms intended to lower debt. Gross domestic product dropped by 7 percent on the year in the fourth quarter of 2011, in non-seasonally adjusted terms, the Greek Statistical Authority said. The struggling eurozone country has been shut out of long-term debt markets since 2010, and is surviving on rescue loans from European Union countries and the International Monetary Fund. But harsh austerity measures demanded in return for the emergency loans have hammered the economy. Read more...
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posted 2/14/12
(ATHENS) — The Greek economy remained stuck in a deep recession in the fourth quarter, according to official figures released Tuesday that confirm the painful effects of austerity reforms intended to lower debt. Gross domestic product dropped by 7 percent on the year in the fourth quarter of 2011, in non-seasonally adjusted terms, the Greek Statistical Authority said. The struggling eurozone country has been shut out of long-term debt markets since 2010, and is surviving on rescue loans from European Union countries and the International Monetary Fund. But harsh austerity measures demanded in return for the emergency loans have hammered the economy. Read more...