- EU Leaders Commit To Bail-Out Fund
- Mauldin: Unintended Consequences
- Bankers Secretly Meeting to Control the World?!? Yawn…
- Fake-Out Thursday – Oil Scam Continues Unabated
- Ireland Economy May Grow 0.9% in 2011 as It Recovers From Crisis, IMF Says
- China Leader Says Anti-Inflation Measures Needed
- Brazil Stocks Open Lower As Euro Worries Overshadow Jobs Data
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The promise, contained in their summit communiqué after two days of meetings, was the most explicit commitment to date by European Union leaders about their willingness to back a bail-out of even larger eurozone economies such asSpain and Italy, should those countries get cut off from the financial markets.But their unwillingness to enlarge the fund, which had been proposed by some EU finance ministers, was a sign that they believed setting a new, higher limit would only lead bond traders to assume EU leaders believed a Spanish or Italian bail-out was inevitable.
Correct me if I’m wrong, but I seem to remember that one of the reasons for QE2 was to lower rates on the longer end of the US yield curve. Clearly, that has not happened? Today we look at come of the unintended consequences of monetary policy, turn our eyes briefly to consumer debt, and wonder about deflating incomes. There are a lot of very interesting things to cover.
Critics have called these banks the “derivatives dealers club,” and they warn that the club is unlikely to give up ground easily. The Times points out “Perhaps no business in finance is as profitable today as derivatives. Not making loans. Not offering credit cards. Not advising on mergers and acquisitions. Not managing money for the wealthy.” The secrecy surrounding derivatives trading is a key factor enabling banks to make such large profits and the banks guard that secrecy very closely.
It’s not just American Citizens who are paying the extra $60M per day that the $3 pop in oil costs us, the rest of the World consumes another 70M barrels a day and they are stuck with a $210M per day bill as well for each $3 gain in price. And that, of course, is before the refining mark-ups. Just the $270M a day they screwed us out of this week is a very nice $98.5Bn annual rip-off of the global population or, what I pointed out last year is a Double Madoff!
Ireland faces “significant” spillover risks from its financial woes that could affect Greece, Portgual, Spain and other euro-area economies, the Washington-based fund said. Financial contagion also could affect countries like the U.K., Germany, France and the U.S that have large portfolio investments in Ireland, the IMF said. European Union leaders grappled this week with how to fix the current crisis and prevent future debt shocks in Brussels talks. German officials, driven by public outcry against propping up fiscally reckless countries, have resisted enlarging a 750 billion euro emergency fund or developing joint bond sales.
One of China’s top leaders said at a government meeting that measures needed to be taken to tamp down inflation in the coming year, according to a report on Friday by Xinhua, the state news agency. The comments were one of the clearest signs yet that Chinese leaders are increasingly concerned about popular resentment arising as a result of soaring living costs. The leader, Li Keqiang, vice premier of China, said in comments made Thursday that “more efforts should be provided to stabilize prices next year.” Over the next five years, economic growth rates should be defined “reasonably,” he added, an indication that leaders could be anxious about an overheated economy.
Fresh worries about the state of Europe’s finances arose after a five-notch downgrade of Ireland’s credit rating by Moody’s Investors Service earlier Friday. The rating was cut to Baa1 from Aa2 with a negative outlook. That was enough to make investors dial down their desire to buy riskier assets. At 1356 GMT the Ibovespa index was down 0.4% at 67,073 points. Unemployment was 5.7% in November, lower than the 6.1% rate registered in October, the Brazilian Census Bureau, or IBGE, said Friday. October’s figure previously had been the lowest unemployment rate recorded under the IBGE’s methodology. The unemployment rate in November 2009 was 7.4%.
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