Tag Archive for Euro

Biggest Greek bank warns of dire euro exit fallout

By Reuters If Greece left the euro, living standards would plummet, incomes would be slashed by more than half, and inflation and unemployment would skyrocket, the National Bank of Greece warned on Tuesday.

In a report released ahead of an election on June 17 that may determine whether the country stays in the single currency, the country’s biggest bank said the risk of Athens exiting the euro was no longer just a theoretical possibility, warning that the fallout from such a move would be dramatic.

“An exit from the euro would lead to a significant decline in the living standards of Greek citizens,” the NBG wrote ahead of a vote which parties opposed to austerity measures that have kept Greece in the euro so far have a chance of winning.

The bank said per capita income would collapse by at least 55 percent, the new national currency would depreciate by 65 percent against the euro and a recession, now in its fifth year, would deepen by 22 percent.

Secret 100 billion Euro’s popping up Greek Banks

By: Ralph Atkins in Frankfurt

There has been no official announcement. No terms or conditions have been disclosed. But Greece’s banking system is being propped up by an estimated €100 billion or so of emergency liquidity provided by the country’s central bank — approved secretly by the European Central Bank in Frankfurt. If Greece were to leave the eurozone, the immediate cause might be an ECB decision to pull the plug.

Extensive use of “emergency liquidity assistance” (ELA) to help banks in the weakest economies has been one of the less-noticed features of the eurozone crisis. Separate from normal supplies of liquidity and meant originally as a temporary facility for national authorities to use when banks hit problems, ELA proved a lifesaver for the financial system Ireland and is now even more so in Greece. As such, it has given the ECB — which has ultimate control over the facility — considerable power to determine countries’ fates.

Whether that power would ever be exercised is unclear. ELA is a subject on which the ECB is deeply reluctant to provide information — even on where or when it is provided.

Euro hits 11-month low against the dollar as banks hoard ECB cash

Single currency also at 10-year low against yen, but Italy brings festive cheer to markets as borrowing costs tumble

The euro weakened about 1% percent against the dollar and the yen on Wednesday, the day before an important auction of long-dated Italian debt, while US stocks slid more than 1% on concerns about the economy in early 2012.

The European single currency hit a fresh 11-month low against the dollar of $1.291 and a 10-year low against the yen as data showed banks were hoarding the cash recently injected by the European Central Bank rather than lending it out – a bad omen for the European economy in 2012.

“If European banks are still this concerned, it’s not a good sign,” said Karl Schamotta, senior markets strategist with Western Union Business Solutions. “That underlines the possibility that this liquidity crunch is getting worse and will continue into the new year.

World economy at a ‘very dangerous juncture': IMF chief

IMF chief Christine Lagarde warned Tuesday that the world economy is at a “very dangerous juncture,” speaking of the potential impact on poorer nations during her first visit to Africa as head of the fund.
The International Monetary Fund managing director spoke of a crisis of confidence with high unemployment and slowing global growth.

“Currently the world economy stands at a very dangerous juncture,” Lagarde told a roundtable on Africa’s economic future in the Nigerian city of Lagos.

She said the IMF’s revised global growth forecast expected in January looked to be lower than the previous one in September, which was four percent, already down from June’s outlook.

“And what’s more, there are downside risks on the horizon that are really threatening the recovery process that had started” after the 2008-09 global financial crisis, she said.

Economic collapse with the euro will lead to the end of the world as we know it

Jim, economic collapse with the euro: will that lead to a recession?” asks Glenn Beck.

“That will lead to the end of the world as we know it,” answers Jim Rogers, founder of Rogers International Commodities Index. “That will certainly lead to the end of the world as Washington D.C. knows it. There’s no question about that.”

But who is Jim Rogers and what does he know about the global financial situation?

For those unfamiliar with Beck’s guest, Jim Rogers is a famous American investor who, along with George Soros, founded the Quantum Fund, one of the world’s first international funds. Also, as mentioned above, he is the creator of the Rogers International Commodities Index.

He is a well-known proponent of free market capitalism, a successful author, a regular lecturer of finance at the Columbia University Graduate School of Business, and he has been a regular guest on Fox News’ “Cavuto on Business.”

Needless to say, he knows what he’s talking about when it comes to finances and he has repeatedly proven his keen market sense.

“We do live in very perilous times and I hope you’re very careful and I hope you’re prepared,” Rogers said in regards to the growing financial meltdown.

Read Entire Story in The Blaze http://www.theblaze.com/stories/investor-jim-rodgers-gives-dire-warning-on-gbtv-that-will-lead-to-the-end-of-the-world-as-we-know-it/

down, free market, capitalism

Awash in rumors of war

‘Mysterious explosion rocks Iranian city of Isfahan’ – The Jerusalem Post, November 28, 2011, 19:30

For weeks Israelis have been greeted – almost every day – with headlines sounding the ticking clock that is measuring the minutes toward war.

Other things – for us, relative trivia, but indicative of growing global chaos – have dominated the news in the west: Occupy Wall Street; the imminent collapse of the Euro; the quest for a Republican candidate for 2012; the guilty verdict for Michael Jackson’s doctor; allegations of misconduct against Herman Cain…

All the while, here in the Middle East, we have been made freshly aware of how swiftly we could slide into a massive – even non-conventional – war against Iran and its proxies around us. We have been wondering what the coming hours and days could bring – and we wonder how long we’ll be left wondering.

Euro on death watch

John Melloy

Investors began to fear the worst for the euro after unusually weak demand at an auction for bonds from Germany, the region’s largest economy. One analyst went so far as to put the currency on a “death watch.”

Germany sold just 60 percent of the 6 billion euros in 10-year bunds it brought to auction, about the weakest demand seen for the country’s debt in the currency’s 16-year history, economists said. The rejection of debt from Europe’s safe harbor marks a new stage for the crisis.

“No bunds wanted equals no Euros wanted equals the Euro death watch,” wrote Mark Steele, an analyst with BMO Capital Markets. “We have seen many poor German auctions. This is not the issue. The issue is how badly the euro is doing after the weak auction.”

The euro [EUR=X 1.3328 -0.0017 (-0.13%) ] fell more than 1 percent against the dollar to a 7-week low against the Greenback. The currency threatened to break through the October lows that came amid the height of turmoil in Italy and Greece. Both countries would go on to install new Technocrat leaders, lifting confidence in the currency briefly.

The European Central Bank does not have the same freedom, and therefore firepower, as the Federal Reserve, which announced two rounds of massive purchases of Treasurys (QE) in the aftermath of the U.S. credit crisis. Germany has been reluctant to follow the Fed’s lead and buy up other countries bad debt because of fear over inflation.

US bank shares tumble on eurozone exposure warning

How might Greece leave the euro? Shares in US banks tumbled in late trading on Wall Street after ratings agency Fitch issued a warning over their exposure to the eurozone crisis.

The Dow Jones fell sharply in the last hour of trading, to close 1.6% lower, with financial stocks taking the brunt of the sell-off.

Fitch said that unless the eurozone crisis is resolved soon, the outlook for US banks could worsen.

Meanwhile fellow rating agency Moody’s downgraded 12 German banks.

Major US banks JP Morgan and Bank of America fell 3.8% each, while investment bank Morgan Stanley dropped 8%, after the Fitch report was released in the mid-afternoon.

France

Fitch said that the direct exposure of US banks to troubled European economies – Portugal, Italy, the Irish Republic, Greece and Spain – was “manageable”, and noted that they have been cutting these exposures for over a year

Death to the Euro; Secret plot to wreck the currency

City insiders yesterday speculated that the “death warrant” for the euro had already been written By Macer Hall PREPARATIONS were under way last night for the break-up of the euro as Europe’s debt crisis spiralled out of control.

As Treasury officials worked through the night to soften the impact on Britain, David Cameron warned that the single European currency was facing its “moment of truth”.

Business Secretary Vince Cable went further and spoke about “Armageddon” while Brussels officials warned that the chaos threatened to plunge us all into a new recession.

Ministers are understood to be deeply concerned that French President Nicolas Sarkozy and Germany’s Chancellor Angela Merkel are secretly plotting to build a new, slimmed down eurozone without Greece, Italy and other debt-ridden southern Euro- pean nations.

New euro ‘empire’ plot by Brussels

European Union chiefs are drawing up plans for a single “Treasury” to oversee tax and spending across the 17 eurozone nations.

Britain must decide on the nature of its relationship with the European Union By Patrick Hennessy, and Bruno Waterfield

The proposal, put forward by Herman Van Rompuy, the European Council president, would be the clearest sign yet of a new “United States of Europe” — with Britain left on the sidelines.

The plan comes as European governments desperately trying to save the euro from collapse last night faced a new bombshell, with sources at the International Monetary Fund saying it would not pay for a second Greek bail-out.

It was also disclosed last night that British businesses are turning their back on Brussels regulations to give temporary workers full employment rights, with supermarket chain Tesco leading the charge.