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Posts Tagged ‘Greek drama’

Greek ‘Drama’ Only in First Act, or ‘Beware of Greeks Bearing Gifts’

Posted by Larry Doyle on April 6th, 2010 1:42 PM |

Prior reports that Greece’s financial problems are now in the rear view mirror are exceedingly premature.

As we navigate ‘across the pond,’ we learn that the Financial Times’ Wolfgang Munchau believes Greece Is Going to Default but Not This Year:

Greece will not only have to make an extremely large public sector deficit reduction effort but it will also have to do this under a condition of disinflation, and possibly deflation, which would push its nominal growth rate to negative levels during the adjustment period. That, in turn, would jeopardise the debt reduction programme of both the public and private sectors. Under those circumstances, there is no way that Greece could ever stabilise its debt-to-gross domestic product ratio, no matter how hard the government of George Papandreou tries.

To get out of this mess, one of five things will have to happen. (more…)

China, Greece, and Germany Rattle Overnight Markets

Posted by Larry Doyle on February 12th, 2010 7:11 AM |

Flags

No rest for the weary.

If you thought yesterday’s nice 1% upward move in our equity markets was a precursor for calmer and stronger markets ahead, think again.

Overnight developments in China, Greece, and Germany are clear signs that our economic landscape remains challenging and our markets remain fragile. Let’s navigate:

1. Looking eastward, China’s central bank raised reserve requirements (interest rates) by 50 basis points (.50%). Why? (more…)






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