Savings accounts in Spain, Italy and other European countries will be raided if needed to preserve Europe's single currency by propping up failing banks, a senior eurozone official has announced.
Spain's central bank is predicting a continuing recession and mounting unemployment for the rest of 2013 as the country struggles to free itself from a broad European slowdown and repair its finances. The Bank of Spain said Tuesday it expects the country's economy to shrink 1.5 percent this year, compared with 1.4 percent in 2012, and only return to growth in late 2014.
It forecast the jobless rate will rise to 27.1 percent this year, up from 26 percent last year.
Japan's public debt has reached worrying levels and could lead to a bond buyers' strike unless the government brings the budget deficit under control, the country's top currency official has warned.
During this legislative session, the House is expected to propose a six percent tuition increase for students in state universities and colleges in its budge, according The Ledger in Lakeland.
Two reports – by the Employee Benefit Research Institute (ERBI) and Society of Actuaries – combine to document America’s worsening retirement security problem. They show how U.S. workers are failing to save adequately for retirement
The Portuguese economy is set to contract by 2.3 percent this year due to a sharp fall in domestic demand and disappointing export growth, the Bank of Portugal said on Tuesday.
With the new forecast, which predicts a deeper contraction than an earlier estimate of 1.9 percent, Portugal is now in line with estimations made by Lisbon's creditors, the European Union (EU) and the International Monetary Fund (IMF).
Moreover, he said, because the main economies are all pumping up their money supplies — effectively pushing down the value of their currencies — the net change between their currencies is not very significant.
Do the strongly stimulative economic policies of countries like the United States, Britain, Japan and elsewhere “constitute competitive devaluations?,” Bernanke asked rhetorically.
Cypriot banks will remain closed until Thursday, the central bank now says, and temporary measures will be placed on transactions when they reopen despite an EU/IMF bailout deal.
It said the recession is exacerbating the rise in bad loans held by the banks and is cutting into their profitability — leading banks to provision less. In addition, banks with large holdings in Italian government bonds remain at risk if the yield on government debt rises.
"While Italian sovereign yields have declined from their peaks, the crisis in Europe has not ended," the IMF said.
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