“We wish you well”, that is what British Prime Minister Cameron said during European Summit last week, when he is the only one refusing to agree the new EU treaty. He went even further saying “As long as I am the Prime Minister, this country will never join the euro!” In my early blog of […]
US Super Committee fails to agree on deficit reduction, What is Next?
When Euro Debt Crisis is still in a deadlock, US Supercommittee, who are responsible for coming up with USD1.5 trillion in budget deficit cuts, admitted that they would not reach an agreement by its November 23rd deadline. The Select Committee on Deficit Reduction (Supercommittee) had been appointed this year, following a review of the burgeoning US deficit. The committee, made […]
The Collapse of MF Global and its impact
When I was reading “Street Fighters – The last 72 hours of Bear Stearns, The toughest firm on Wall Street” by Kate Kelly, the news broke out that MF Global, one of the world leading broker for futures and options has filled bankruptcy. According to the news, the collapse of MF Global was due to […]
Spain Downgraded Again, Greece Default Almost Certain
After Fitch Ratings downgraded Spain on Oct. 7, Standard & Poor’s cut Spain’s credit rating to AA- last week, for the third time in three years. It appears more and more certain to me that Greece Default is inevitable. Although global stock markets have largely rallied last week and even Euro has rebounded sharply. The […]
Why Dexia Bank Collapsed Even After It Passed Stress Test
On 10 Oct 2011, Belgium, France and Luxembourg agreed to nationalise Dexia, Belgium’s biggest bank. Ironically, this happened just 3 months after it passed the stress test. In the press release on July 15, “2011 EU-wide Stress Test Results: No Need for Dexia to Raise Additional Capital”, it said “The EU-wide stress test, carried out […]
Four Potential Scenarios of Eurozone Debt Crisis
I came across this report from Mike Story, Economist at Western Asset Management discussing four potential scenarios of Eurozone debt crisis Scenario 1: No Eurozone Restructuring This is the most optimistic scenario. All 17 members remain within the eurozone. Scenario 2: Orderly Eurozone Restructuring In this scenario, policymakers (European Central Bank officials and European finance […]