Category: Global Debt Crisis
The analysis published under this category are as follows.
Friday, November 18, 2011
Rising Government Bond Yields Push Eurozone Debt Crisis to the Precipice of Collapse / Interest-Rates / Global Debt Crisis
By: Money_Morning
David Zeiler writes:
Rising government bond rates are making it increasingly costly for several key Eurozone nations to borrow money, stoking fears that the sovereign debt crisis has reached a critical stage.
Yields on 10-year Spanish Treasury bonds rose to 6.8% during yesterday's (Thursday's) auction - uncomfortably close to the 7% level at which many experts feel is unsustainable. When the 10-year bond yields of Portugal, Ireland, and Greece passed 7%, each was forced to seek a bailout.
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Thursday, November 17, 2011
Spain Debt Crisis Bailout Imminent as Spanish Bond Auction Hits 6.975% Yield on 10-Year Debt / Interest-Rates / Global Debt Crisis
By: Mike_Shedlock
The ECB stepped into the fray once again today but the the results of the Spanish debt auction today speak for themselves. The rate on 10-year bonds is close to touching the 7% mark.
Thursday, November 17, 2011
Credit Storm Batters Europe / Interest-Rates / Global Debt Crisis
By: Mike_Whitney
So, how bad will the EU credit crunch get?
Credit conditions in the eurozone continue to deteriorate while yields on French, Spanish, Belgian and Italian bonds move higher. Italy’s 10-year yield increased 19 basis points to 6.89 percent on Tuesday, just a stone’s throw from the “unsustainable” 7 percent. French debt is also under increasing pressure. The spread between France’s 10-year debt and German bund hit a new high on Tuesday, widening by 174 basis points. If yields continue to rise, European Central Bank (ECB) chief Mario Draghi will be forced to either expand his bond buying program (Securities Markets Programme) or watch while defaulting sovereigns domino through the south taking most of the EU banking system along with them.
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Thursday, November 17, 2011
What Will Happen to Greece et al (if they leave the Eurozone)? / Politics / Global Debt Crisis
By: Julian_DW_Phillips
Forest Fire on the Way
As each week passes, the debt crises in the Eurozone become more and more like a dry forest where small fires that have broken out appear to be contained before the next larger fire is kindled. "Solutions" are put forward, only to prove inadequate. New prime ministers of Greece and Italy are hailed as capable of imposing needed disciplines to stave of a full blown forest fire. But even these (future scapegoats?) men realize they can contribute only a small amount to the problems.
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Thursday, November 17, 2011
European Bond Traders Are Going For the Sovereign Debt Jugular / Interest-Rates / Global Debt Crisis
By: Money_Morning
Keith Fitz-Gerald writes:
If you look at the crisis in Europe, the key questions to ask are clear: Will this crisis continue to spread? And will the United States get singed by the fallout?
In both cases, the answer is a very clear "Yes."
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Wednesday, November 16, 2011
ECB Slows Italy Debt Crisis Meltdown, but No End in Sight / Interest-Rates / Global Debt Crisis
By: Dr_Jeff_Lewis
The European Central Bank admitted earlier today that it had taken part in asset purchases intended to give lift to the Italian debt markets. Through the week ending November 4, the ECB says it spent $13.1 billion to push down Italian yields against other European governments.
Tuesday, November 15, 2011
Euro-Zone Prepares to Print Trillions in Advance of Greece Debt Default / News_Letter / Global Debt Crisis
By: NewsLetter
The Market Oracle NewsletterSeptember 27th, 2011 Issue #18 Vol. 5
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Monday, November 14, 2011
The Coming Global Systemic Collapse and its Implications / Interest-Rates / Global Debt Crisis
By: Sam_Chee_Kong
The European Union’s failure to solved Greeks and now Italy’s debt crisis is sending shockwaves through the financial, currencies, equities and derivatives markets.
Europe needs to increase its bailout fund in the EFSF to more than €1 trillion by next year when waves of Eurozone debts matures. Among them are Italy €307 billion (19.3% of GDP, Germany €273 billion (10.6% of GDP), France €240 billion (12% of GDP) and Spain €132 billion (12.2% of GDP). This is excluding new debts to be issued to fund its deficits spending and bank bailouts. Europe is now in between a rock and a hard place because it can start printing money but the ECB treaty prevented it from doing so.
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Monday, November 14, 2011
How Do we Solve the Eurozone Crisis, Where Is the ECB Printing Press? / Interest-Rates / Global Debt Crisis
By: John_Mauldin
Europe remains the focus of markets, and rightly so. But the picture is not as clear as one would like. Different analysts point to different problems – if only this one problem could be solved, then all this would go away, they tend to say. Sadly, it is not one problem but three that must be solved, and none of them is easy. In today’s letter I try and offer a basic primer on the problems facing Europe. My challenge to myself is to do it in a short piece rather than the book-length tome it could easily become. Thus, in the pursuit of brevity, we will not be as in-depth as usual, but I think it helps us to step back a few feet and look at the larger picture before we focus on minutiae.
Sunday, November 13, 2011
Europe’s Debt Crisis Spirals out of Control Towards Economic Collapse / Politics / Global Debt Crisis
By: Bob_Chapman
As Chancellor Merkel and PM Sarkozy search for a solution that doesn’t exist they continue to lose credibility. Nothing of substance has been agreed upon that is legal and can be implemented. At the IMF Christina LeGarde is frantically waving her arms like a cheerleader telling anyone that will listen that if the six sovereigns in financial trouble are not aided the euro will fail and peace in Europe will disappear.
Friday, November 11, 2011
Five Companies to Avoid Until the Eurozone Debt Crisis is Over / Companies / Global Debt Crisis
By: Money_Morning
David Zeiler writes:
U.S. companies with significant exposure to Europe will take a profit hit regardless of how the Eurozone debt crisis shakes out.
The financial strain of Europe's efforts to avert default among its troubled members - Portugal, Italy, Ireland, Greece and Spain (PIIGS) - has set the Eurozone on course for a recession even if its efforts succeed.
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Friday, November 11, 2011
How JPMorgan Aided and Abetted the Largest Municipal Bankruptcy in U.S. History / Companies / Global Debt Crisis
By: Money_Morning
Shah Gilani writes:
Alabama's Jefferson County filed for bankruptcy protection on Wednesday, making it the largest municipal bankruptcy in U.S. history.
But believe it or not, that's not the biggest story here.
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Thursday, November 10, 2011
Italy the One Country That Could Destroy the Eurozone / Interest-Rates / Global Debt Crisis
By: Money_Morning
Martin Hutchinson writes:
It's been a rough few weeks for the Eurozone.
Portugal is still in trouble, Spain will be back on the coals after its Nov. 20 election, and if I were a bond trader, I would be shorting Belgium, which has serious deficit and debt problems, runs for months at a time without a government and is in some danger of splitting apart into its French and Flemish bits.
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Wednesday, November 09, 2011
Too-Big-To-Save Italy Totters on Debt Crisis Cliff / Interest-Rates / Global Debt Crisis
By: Money_Morning
David Zeiler writes:
With its 10-year bond yields nearing 7%, Italy's debt is becoming a burden it will no longer be able to handle as it follows the same path as Portugal, Ireland and Greece.
However, Italy's economy - seven times larger than Greece's, nine times larger than Portugal's and 10 times larger than Ireland's - is too big for the Eurozone to rescue.
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Wednesday, November 09, 2011
Italy Enters Debt Crisis High Bond Yield Danger Zone? / Interest-Rates / Global Debt Crisis
By: DK_Matai
1. Equity markets euphoria notwithstanding, Italy could yet drag the Eurozone and world financial markets into a new and formidable out-of-control crisis;
2. Even if Berlusconi goes, it is unlikely that any parliamentary consensus will emerge in the short term to cut Italy's massive debt and boost growth;
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Wednesday, November 09, 2011
Greek Half Debt Default Leaves Trillion Dollar Market in Limbo / Interest-Rates / Global Debt Crisis
By: Dr_Jeff_Lewis
The European Debt Crisis seems to have found resolution. Those holding Greek securities will have to tolerate a one-half reduction in the value of their securities, essentially allowing Greece to halve its current debt overnight. Questions linger about Greece’s ability to pay, and some are suggesting that the change might not produce immediate benefits; a write down will just encourage investors to demand greater returns when new securities come on the market.
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Tuesday, November 08, 2011
The Banks That Swallowed Europe, Western Civilization Built on Debt / Interest-Rates / Global Debt Crisis
By: John_Mauldin
Long-time readers will be familiar with Michael Lewitt, one of my favorite thinkers and analysts. He has gone off on his own to write his letter, and I am encouraging him to write even more. I call Michael a thinker because he really does. He reads a lot of thought-provoking tomes and then thinks about them. And then writes, making his readers think. The world needs more Michael Lewitts.
Today, he roams the world, commenting as he goes, starting of course with Europe. I have permission to use the first half of this most recent letter as today’s Outside the Box, leaving off the investment recommendations that he shares with his subscribers. If you are interested you can subscribe at www.thecreditstrategist.com.
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Monday, November 07, 2011
Intermarket Bond Analysis, Why E.U. is Now a Full Blown Crisis / Interest-Rates / Global Debt Crisis
By: Capital3X
Keying in on our earlier analysis on “Return of fear in Nov”
We look at key bond market spreads to understand ground trends on the Euro and risk rally which we have already termed it as a major fake.
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Monday, November 07, 2011
A True Greek Tragedy - Odyssey of the EU / Politics / Global Debt Crisis
By: BATR
The cradle of democracy is under attack. The Inherent Autonomy of the human spirit is at stake. What was won at the Battle of Thermopylae, was lost in the banksters board rooms that control the EU. The fluidity of this definitive game of chicken, poses the beheading of the rooster and the scorching of all the hens. This journey into Land of the Lotus Eaters, not only needs to blind Polyphemus, but must destroy his New World Order father, Poseidon. The designed destruction of democratic authority is meant to eliminate any referendum on the EU despotism. The phony debt instruments caused the Greek default, that will soon spread the planetary misery, on the rest of us. Western civilization’s birth, owes homage to the Greek principle of individual autonomy. Its demise is a product of the inherent betrayal of humanity by the forces of financial exploitation, that exemplifies 1 Timothy 6:10, For the love of money is a root of all kinds of evils.
Monday, November 07, 2011
Sovereign Debt Crisis Canaries In The Mineshaft: Should Markets Be Apprehensive? / Interest-Rates / Global Debt Crisis
By: DK_Matai
1. The G20 summit in Cannes has not been able to deliver any meaningful solution to the Eurozone crisis. As the Breton prayer goes, "O Lord, thy sea is so great and my boat is so small!" The summit has confirmed that China, India and other emerging countries will neither be able and nor will they be willing to rescue the richer Eurozone nations. Also, the US is in no mood to roll out a second Marshall Plan on this occasion. The world has moved on since 1948. As one distinguished G20 summit attendee from the US told ATCA 5000, "if the Europeans are not going to take their fire engine out to put out their fires why should we lend them our fire engine? What happens if we have a mini-fire of our own in the meantime?" The much vaunted IMF solution also appears to have fizzled out, at least for the time being;
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