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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (82498)	11/1/2011 12:52:45 AM
From: 2MAR$	Read Replies (2) \| Respond to of 217798

Despite debt deal, Europe could slide into a recession that would harm US and global economies finance.yahoo.com (but lets not think to run this headline until after we run everything up the entire month to 1280 and get our xmas bonuses in !) European banks agreed last week to take a 50 percent loss on their Greek bonds. They will also set aside more money to cushion against future losses. In addition, eurozone leaders hope to strengthen their bailout fund to keep the crisis from spreading to bigger countries. Financial markets roared their approval. Jacob Funk Kirkegaard, a research fellow at the Peterson Institute for International Economics, says the deal helped ease fears of a catastrophe. "We're not going to have a disorderly Greek default," he says. "We're also much less likely to have a large European bank suddenly collapse." But analysts noted the paucity of details, wondered how many banks would adopt a voluntary 50 percent write-down on Greek bonds and questioned where the money for the enlarged bailout fund would come from. European leaders last week approached China for financial help. Kirkegaard expects the continent to slip into a mild recession late this year or early next, though its strongest economy, Germany, may escape a downturn. Economic growth in the 17 countries that use the euro will slow to 0.3 percent next year from 1.6 percent this year, the Organization for Economic Cooperation and Development estimated Monday. Some European economies may stop growing altogether, the organization of wealthy nations warned. One reason for the pessimism: Smaller countries, particularly Greece, Ireland and Portugal, are slashing spending. The bigger ones are raising taxes and also cutting spending and Italy, Europe's No. 3 economy, is carrying out a $76 billion package of spending cuts and tax increases to try to convince bond investors it won't default on its debt. Britain has imposed an austerity program that's stalled growth. The debt crisis has shaken the confidence of those whose spending must fuel growth. Business executives and consumers seem less likely to step up purchases for new factories or SUVs. And the prospect of having to absorb huge losses on their bond holdings has caused banks to retrench. The European Central Bank's October lending survey showed that banks cut net credit to businesses by 16 percent in the July-September quarter. The 124 surveyed banks expected even tighter credit as the year ends. Automaker Daimler AG said last week that it saw little prospect of significant growth in Western Europe. Its French competitor Peugeot Citroen SA said it would cut 6,000 jobs because of flat demand in Europe. The weakness has already caused pain across the Atlantic. Jeff Fettig, CEO of U.S. appliance maker Whirlpool, said Friday that demand is tumbling in parts of Europe. Whirlpool cut its earnings estimates and said it would lay off 5,000 in North America and Europe. The United States exported $240 billion in goods to the European Union last year -- more than twice its export total to China. U.S. companies have also sunk $2.2 trillion into long-term investments in Europe, such as factories and acquired companies. No other region comes close to drawing so much U.S. investment. Germany has 2,200 American-owned companies. General Motors and Ford Motor Co. have divisions based there. ExxonMobil Corp., ConocoPhillips, GE, IBM, Hewlett-Packard Co., Procter & Gamble Co. and Dow Chemical Co., all generate billions in annual European sales. Exports have accounted for 47 percent of growth since the Great Recession ended in mid-2009. That's more than twice their share after the previous three recessions. "It is the reason Europe matters," says Steve Blitz, senior economist at ITG Investment Research.

To: TobagoJack who wrote (82498)	11/2/2011 3:08:28 AM
From: elmatador	Read Replies (1) \| Respond to of 217798

Referendum is about leaving Euro. Greece will leave Euro and Euro collapses. Threat to BCE. Academics that defended the 50% hair cut now ask about the future fo Greece. Overall bad news to Europe. Part of the script for a Core Europe... Message 27328848 CATEGORY 1 CORE EUROPE. EURO+ countries and Japan. You will live through an era of gracious decline, Japan, Germany, Sweden, Holland, France, Denmark, Norway. living off capital royalties and tiny little industrial segment very specialized sectors. ... CATEGORY 3 Sharp fall with a thud. Spain, Italy, Belgium, Eastern Europe absorbed the cost structures of a welfare state from West Europeans (Poland, Slovakia, Hungary, Baltic states) Joining the basket cases. Iceland, Ireland, Greece, Portugal. Those countries were on the way to Portugal, Ireland Greece stage when 2007 crisis hit. Core Europe gave them a spurious feeling that accepting them into the EU was a passport for a wealthy country. Although they had no natural, resources, oil and gas, agriculture or even cheaper manpower after gone in Euro Zone. For two reasons they could not reform and kept spending: Their government could not admit they were going back to where they come from. That would be political suicide. Those big construction companies needed a constant stream of new projects to keep making money.