Austerity plans threaten “social cohesion” in US, UK, Germany, France, and Spain

Posted by Matt in March 16th, 2010 | no comment

Published in Financial Crisis, Austerity, Bud, Execution, Germany France, Public Finances, Risk, Social Cohesion, Sovereign Debt, Spain, Stimulus, Tightrope, Uk Germany

The world’s five biggest AAA-rated states are all at risk of soaring debt costs and will have to implement austerity plans that threaten “social cohnesion”, according to a report on sovereign debt by Moody’s.
The US rating agency said the US, the UK, Germany, France, and Spain are walking a tightrope as they try to bring [...]

The Building Bubble in China – BusinessWeek

Posted by Matt in February 20th, 2010 | no comment

Published in China, Economy, Asset Investment, beijing, Businessweek, Cb Richard Ellis, Cbre, China World, Chinese Banks, Empty Buildings, Encouragement, Hedge Fund, James Chanos, Kynikos Associates, Mainland, Skyscrapers, Stimulus, Tallest Building, Tower 3, Trillion, Vacancy Rate, World Tower

Much of China’s stimulus money was spent on skyscrapers, spurring fears of a real estate bust
Much of the $1.4 trillion in loans made by Chinese banks last year—with considerable encouragement from officials aiming to boost growth—was spent on skyscrapers and other commercial property. Now empty buildings are sprouting across the mainland. Beijing had an office [...]

Sovereign Debt Issues Threaten Global Economic Rebound

Posted by Matt in February 3rd, 2010 | no comment

Published in Economy, Financial, Debt Issues, Debts, Economic Rebound, Epoch Times, Financial Crisis, Governments, Liquidity, Public Debt, Sovereign Debt, Sovereign Nations, Stimulus, Teetering On The Edge, World Economic Forum

Some sovereign nations are teetering on the edge of another financial crisis because of debts amassed to pump massive stimulus packages into their economies.
As a result of the increased liquidity, governments increasingly have amassed more public debt, which if continued, will become unsustainable in the long term. The threat of sovereign default, or a government’s [...]

Paul Krugman – That 1937 Feeling – NYTimes.com

Posted by Matt in January 5th, 2010 | no comment

Published in Economy, Bush Tax Cuts, Columnist, Crutches, Economy, Great Depression, Great Mistake, Monetary Policy, Nytimes, Paul Krugman, People, Recession, Roosevelt Administration, Stimulus

The economy appears to be looking up but could fall right back into another recession just like in 1937. The biggest concern is that the Bush tax cuts will expire in 2011, and we can look forward to the biggest tax increase in history. If you wanted to ensure another recession then letting the [...]

China Dares Currency Reprisals

Posted by Matt in December 10th, 2009 | no comment

Published in China, beijing, China Currency, Corporates, Current Situation, Dares, Economic Distress, English Proverb, Horse To Water, Intransigence, Mid Term Elections, Reprisals, Retaliation, Scapegoats, Scope, Sentinel, Stimulus, Sums, Target, Unemployment, Yuan

US economic distress could trigger retaliation against the cheap yuan
“You can lead a horse to water but you can’t make it drink”. This old English proverb sums up the current situation with the US economy. The government is intending to throw in yet more budgetary stimulus but it seems a better than even chance that [...]

Dubai Debt: Global Economic Recovery Still in Danger – TIME

Posted by Matt in November 30th, 2009 | no comment

Published in Dubai, Economy, Boom, Danger Time, Dominique Strauss Kahn, Economic Recovery, Excess Capacity, Global Economy, Global Issue, International Monetary Fund, Late November, Managing Director, New Menu, No Doubt, Policy Challenges, Recession, Slew, Stimulus, surprises, Uncertainty, Unemployment, Unresolved Problems

The worst of the crisis is almost certainly behind us, but that doesn’t mean the crisis is over. Lying ahead are a slew of unresolved problems, policy challenges and, no doubt, further surprises. Unemployment remains a serious global issue, and may yet get worse; excess capacity left over from the boom years haunts the recovery; [...]

Predictions of War, Financial Bust, and More Gloom-Minyanville

Posted by Matt in November 25th, 2009 | no comment

Published in Financial, War, Amp, Big Bust, Boom, Credit Expansion, Doom Editor, Economy, Gloom, Governments, Inflation Rate, Inquiring Minds, Marc Faber, Printing Money, Stimulus, Swiss Fund

Marc Faber, the Swiss fund manager and Gloom Boom & Doom editor, said eventually there will be a big bust and then the whole credit expansion will come to an end. Before that happens, governments will continue printing money which in time will lead to a very high inflation rate, and the economy will not [...]

Why Niall Ferguson is still bearish – The Globe and Mail

Posted by Matt in November 23rd, 2009 | no comment

Published in Niall Ferguson, Globe And Mail, Globe Mail, Great Depression, Harvard University, Niall-Ferguson, Stimulus, Uncharted Waters, University Historian

‘Having narrowly avoided a Great Depression by using massive fiscal and monetary stimulus, we are now in uncharted waters,’ Harvard University historian says
Why Niall Ferguson is still bearish – The Globe and Mail

Fears of China property bubble

Posted by Matt in November 19th, 2009 | no comment

Published in China, beijing, Chief Executive, China Market, China Property, Fears, Financial Times, Growth Prospects, Property Developers, Real Estate Developers, Soho, Stimulus, Zhang Xin

A large bubble is forming in China’s property market as a result of Beijing’s credit-driven stimulus programme, one of the country’s most prominent real estate developers warned.
Zhang Xin, chief executive of Soho China, one of the country’s most successful privately owned property developers, told the Financial Times the asset bubble was leading to rampant wasteful [...]

Top China banker warns on asset bubbles

Posted by Matt in October 22nd, 2009 | no comment

Published in general, Bubbles, Chairman Of China, China Bank, China Merchants Bank, Economy China, Financial Times, Monetary Policy, Slowdown, Stimulus, Stock

China needs an “urgent” tightening of monetary policy to prevent the huge stimulus measures introduced this year from inflating stock and property bubbles, one of the country’s leading bankers has warned.
Qin Xiao – chairman of China Merchants Bank, the country’s sixth-biggest – says in Thursday’s Financial Times that the government should not be afraid of [...]