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Posts Tagged ‘debt crisis’

Eurozone Crisis: Economic Recession Continues

February 15th, 2013 Comments off

The latest data released by Eurostat shows that in the final quarter of 2012, the Eurozone area’s combined GDP contracted by 0.6 percent. This follows a previous quarter of negative growth, reflecting the fact that the Eurozone is confronting both a staggering debt crisis and an economic recession simultaneously. The Q4 data shows that even Germany’s  economy, the strongest in the Eurozone, also contracted.

Negative growth will only exacerbate the Eurozone’s sovereign debt crisis. With the worst afflicted economies dependent on massive loans from German taxpayers and the IMF, the continuing negative economic trends demonstrate how improbable the calculations of the monetary union ‘s policymakers are in their gamble that they can miraculously restore economic growth while solving the Eurozone’s debt crisis. The latest Eurostat data confirms the insoluble conundrum confronting the politicians  in the Eurozone.

 

                 

 

 

 

WALL STREET KILLS--A CHILLING NOVEL ABOUT WALL STREET GREED GONE MAD

 To view the official trailer YouTube video for “Wall Street Kills,” click image below:

In a world dominated by high finance, how far would Wall Street go in search of profits? In Sheldon Filger’s terrifying novel about money, sex and murder, Wall Street has no limits. “Wall Street Kills” is the ultimate thriller about greed gone mad. Read “Wall Street Kills” and blow your mind.

 

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Global Economic Crisis Much Worse Now Than Two Years Ago, Warns Nassim Taleb

June 11th, 2010 Comments off

In an interview with CNBC, the bestselling author of  “The Black Swan,” Nassim Taleb, described the current economic environment as being significantly deteriorated from 2008, when Lehman Brothers went bankrupt. In his gloomy assessment of the global economic crisis, Taleb said, “We had less debt cumulatively (two years ago), and more people employed. Today, we have more risk in the system, and a smaller tax base.”

According to Nassim Taleb, the core economic and financial problem afflicting major economies is a saturation of debt, both public and private. The current Eurozone and UK debt crisis is a manifestation of the age of austerity that lies before us. The United States and UK share the debt crisis afflicting Eurozone economies, however policymakers are still addicted to deficits even in the current critical economic environment. Taleb warned that a debt crisis could not be countered by taking on even more debt, a policy response he compared with giving more alcoholic beverage to an alcoholic.

Nassim Taleb also pointed out that toxic assets on bank balance sheets were as severe a problem now as two years ago. While acknowledging that governments have used taxpayer money to take some toxic assets off bank balance sheets, he pointed out that further degradation of remaining bank assets due to deteriorating economic metrics meant that banks were as fragile today as they were in 2008.

Will the UK Follow Greece in Facing a Severe Debt Crisis?

February 24th, 2010 Comments off

The British pound sank like a stone as the Governor of the Bank of England, Mervyn King, issued a grim warning during testimony before the UK Parliament’s Treasury Select Committee. The central fiscal problem is the £178 billion annual deficit incurred by Gordon Brown’s government in the midst of the global economic crisis.

Mervyn King indicated that the Bank of England will have to continue with quantitative easing in the face of the massive government deficits, sending negative signals to investors as to the stability of the nation’s currency. He warned that both the current government, and a likely new government to succeed Brown after the next British general election, must send a clear message to the markets that they have a credible plan to significantly reduce the nation’s fiscal deficits.

I think the current breed of politicians, in the UK and elsewhere, haven’t a clue how to address the massive, unsustainable deficits that plague virtually every major and advanced economy. Which means that it is only a matter of time before the UK, and then the US, follow in the footsteps of Greece down the road of national insolvency.