Tag Archives: Bailout Fail

Four-month deal reached between Greece, creditors

Posted on by

“European finance ministers came to the agreement Friday as failure to reach a deal threatened Greece’s solvency. The extension will give Greece time to negotiate a follow-up arrangement with creditors as it attempts to undertake fiscal reforms.  The extension is contingent on reforms, which Greek officials and Europe will agree on by the end of April. Greece will present a list of reforms by Monday, Dijsselbloem said. The deal will be ratified when creditors are satisfied with reforms.  A euro zone fund for Greek bank recapitalization will remain available throughout the extension, Dijsselbloem added.”

http://www.cnbc.com/id/102441980

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

Greece Offers New Bailout Plan as Latest Grexit Drama Commences

Posted on by

the-daily-bell-top-logo61

“We begin to see a pattern here. As always, we are led to believe the crisis is unavoidable and the horror is about to descend. And then at the last minute, or even after the last minute, the bureaucrats somehow manage to resolve their differences. Some government leader or other is proclaimed a hero and the mainstream media rejoices. This seems like a movie we’ve seen before. These constant cliff-hangers are part and parcel of the negotiating process. The contentiousness is necessary to ensure that all eyes are on Brussels and everyone gets the message that if you work in a government job, the fate of millions may hang on your actions and statements.”

http://www.thedailybell.com/news-analysis/36078/Greece-Offers-New-Bailout-Plan-as-Latest-Grexit-Drama-Commences/?uuid=6F7EFAA8-5056-9627-3C97350BFC837212

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

Broken Links: Fed Policy and the Growing Wall Street-Main Street Gap

Posted on by

“Probably the strongest feature of the foregoing chart is the tendency for inflation to move higher and lower in trends that have very little to do with unemployment, and for unemployment to move up and down in trends that have very little to do with inflation. Not to ruin a good theory with the facts, the failure of this misguided Phillips Curve formulation to describe the real world has resulted in a wide variety of ways to ‘augment’ it using expectations, varying ‘natural’ rates of unemployment, and so forth. The idea seems to be that using the right set of assumptions, we can make sense of the fact that the planets that circle around the Earth keep stopping and going backwards.”

http://www.hussmanfunds.com/wmc/wmc140825.htm

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

Polish $300 Billion Aid Package Hides EU Expansion Flaws

Posted on by

“Halfway through a 229 billion-euro ($317 billion) EU aid package, more than the entire Marshall Plan for postwar Europe in today’s dollars, the money kept the Polish economy growing when the rest of the continent went into recession. The new business parks, highways, soccer stadiums and airport terminals also mask how for many Poles the passage to prosperity is still to come, with 17 percent of families of four living on less than $400 a month. Unemployment is 13.5 percent. While that’s half the rate of crisis-hit Greece, it’s higher than Ireland, whose economy shrank for four of the last six years and remains a destination for many young Poles.”

http://www.bloomberg.com/news/2014-04-29/polish-300-billion-aid-package-hides-eu-expansion-flaws.html

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

Money fund loses 0.3% of clients’ money to bailed-out African Bank

Posted on by

“Absa has faced criticism for sinking 0.3% of its Money Market clients’ investments in the wake of African Bank’s crash and bailout.  Absa Money Market (AAM) clients were notified as late as Tuesday (19 August) that the fund had removed all African Bank investments from its market.  Absa had to adjust the value of its Money Market by 0.3%, effectively swiping that value off of clients’ investments, providing a 0% interest rate for the period.  With a money market value of R52.8 billion, Absa in effect swiped off R158.4 million in investments. Money Market clients were not impressed with the news, and even less so that they were notified long after the move.”

http://businesstech.co.za/news/banking/66332/why-absa-took-0-3-of-clients-money/

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

Moody’s downgrades South Africa’s four biggest banks

Posted on by

“Ratings agency Moody’s downgraded four South African banks on Tuesday and put them on review for further cuts, saying there was a lower likelihood of support from the central bank to protect creditors after African Bank’s debt crisis.  Moody’s cut ratings for Standard Bank of South Africa, FirstRand , Nedbank and Absa Bank, the local operation for Barclays Group Africa. The ratings agency said it was adjusting its view following the $1.6 billion bailout of African Bank by the South African Reserve Bank (SARB).  Moody’s said while SARB’s actions mitigated the risk of contagion across the banking sector, the regulator had indicated by its actions that it was willing to impose losses on creditors.”

http://www.sabc.co.za/news/a/b7f27b804529137bb9b7b9a5ad025b24/Moody’s-downgrades-South-Africa’s-four-biggest-banks

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

Congress slams Fed’s permanent crisis lending proposal

Posted on by

“A bipartisan group of lawmakers on Monday urged the Federal Reserve to restrict its crisis lending programs for big banks.  Congress approved billions of dollars in 2008 to stabilize banks. In addition, the Fed launched its own programs, such as an overnight loan facility for primary dealers.  In all, the Fed provided more than $13 trillion to banks that relied on emergency lending programs for an average of 22 months, the letter said. ‘These loans were another bailout in all but name,’ the lawmakers said.  The group criticized rules the Fed proposed in December 2013 to implement the Dodd-Frank requirement that emergency programs provide liquidity to the entire financial system, not failing banks.”

http://www.baltimoresun.com/business/sns-rt-us-financial-regulations-fed-20140818,0,2845782.story

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

Icelandic capital controls to remain until 2015: central bank

Posted on by

“Capital controls are expected to remain in place in Iceland until 2015, according to the country’s central bank.  The restrictions have had a profound effect on the asset allocation of Icelandic pension funds, leaving them only limited room to manoeuvre, as they are unable to make new investments in assets denominated in foreign currencies.  As a result, the asset allocation of Icelandic pension funds today largely consists of government guaranteed paper and bank deposits.  The central bank had introduced measures to temporarily restrict currency outflows following the country’s banking crisis in 2008.”

http://www.ipe.com/icelandic-capital-controls-to-remain-until-2015-central-bank/40226.fullarticle

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

Iceland Seen Threatened by Capital Flight From Its Own Citizens

Posted on by

“U.S. hedge funds aren’t the only ones trying to exit Iceland.  Its own citizens may follow if the government doesn’t show it can lift capital controls in place since 2008 without triggering a currency sell-off, according to Iceland’s biggest insurance firm.  Iceland has yet to test the staying power of its economic recovery. Capital controls, imposed at the end of 2008 after the island’s three biggest banks defaulted on $85 billion, have so far stopped offshore investors selling $7.2 billion in assets, equivalent to half the nation’s gross domestic product.  Hedge funds bought claims on the banks’ assets at prices well below face value. Five years later they’re still waiting to cash in.”

http://www.bloomberg.com/news/2014-02-28/iceland-seen-threatened-by-capital-flight-from-its-own-citizens.html

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet

Study: 35 percent in U.S. facing debt collectors

Posted on by

“The study found that 35.1 percent of people with credit records had been reported to collections for debt that averaged $5,178, based on September 2013 records. The study points to a disturbing trend: The share of Americans in collections has remained relatively constant, even as the country as a whole has whittled down the size of its credit card debt since the official end of the Great Recession in the middle of 2009.  Health care-related bills account for 37.9 percent of the debts collected, according to a new report commissioned by the Association of Credit and Collection Professionals. Student loan debt represents another 25.2 percent, and credit cards make up 10.1 percent.”

http://www.sltrib.com/sltrib/money/58237523-79/percent-debt-credit-collections.html.csp

Scan to Donate Bitcoin to Freedomwat.ch Staff
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Donate via Installed Wallet