The first round of negotiations over a new trade agreement between the U.S. and the European Union is scheduled to start this week, but it may be doomed before it even begins. EU officials are demanding answers and threatening to call off the negotiations in light of the latest NSA revelations released last week showing how the U.S. has been involved in extensive spying on EU diplomats. The diminishing trust between the two allies could have a knock-on effect on global copyright regulation and stiffen Europe’s resolve to better protect its own citizens’ online privacy.[Read more...]
Global investors had to muster the courage to keep calm as news of Cyprus’ proposed partial theft of all bank deposits took Wall Street by surprise, closed the country’s banks and drove the price of gold higher.
The thoughtless idea was intended to capture a portion of the $31 billion in bank assets held by Russians. According to The Financial Times, Cyprus has developed a “well-earned reputation for being a haven for dirty money from Russia.”[Read more...]
Let’s start today’s issue with a quick joke, it’s a one-liner:
According to CNN Money “Any bank run at this point outside Cyprus seems unlikely.”
Ha! Unlikely? Yeah, about unlikely as the sun rising.
Without wasting another minute, let’s venture into the world of poor decisions. No, I don’t mean your editor’s St Patty’s Day weekend plans, but rather let’s head to the central bank-plagued Eurozone…[Read more...]
The dollar bulls really are having their way with the currencies, which is so weird given the fact that just two weeks ago, the negativity toward the dollar was running at a level I had not seen before… And then it turned on a dime… Hereâ€™s the skinny on this as I see it…[Read more...]
Last night, I went to my computer at home, and brought up the currency markets, and saw that as of 9:00 last night, the currency rally that was VERY strong yesterday, was still â€œonâ€�… But, like I said at the top, I arrived here, albeit late, this morning and things are drastically changed! I was all prepared to tell you about the 1.70 appreciation of the euro (EUR) in one day, and the $18 rise in gold… But, the best laid plans of mice and men change, eh?[Read more...]
While the several sovereign debt crises in the euro-area have taken markets largely by surpriseâ€“thus leading them to be labeled as unforecastable, â€œBlack Swanâ€� eventsâ€“we see a potentially much greater risk ahead, that Germany, at some point, will reconsider its commitment to the bail-out framework agreed with other EU states in May.[Read more...]
Today has seen a return to risk aversion, after watching the currencies have their way with the dollar, yen (JPY), franc (CHF), and Treasuries on Friday. Remember on Friday when I told you that in the â€œold daysâ€� you could bet a dollar to a Krispy Kreme that if the Jobs Jamboree was bad, the dollar would get sold, and if it was good, the dollar would rally, but that had changed during the financial meltdown… And so it was on Friday… The labor report wasnâ€™t as bad as it was thought to be, but the dollar got sold.[Read more...]
The Renaissance. The Age of Enlightenment. The Industrial Revolution. The Gilded Age. The Cold War. The Information Age.
The Bailout Age?
The printing press already has its own prominent place in history, so we’re not sure what else to call the first couple decades of the new millennium. But after this morning’s news, there’s little debate: time to fire it up![Read more...]
Today, some 18,000 Greeks took to the streets in intense and violent protest against the new austerity measures recently launched. Greece, to lock in EU and IMF support, has instituted measures including reduced salaries for public workers, pension freezes, and increased sales tax.
Bloomberg reports that despite the presence of about 1,700 police officers, a fire started at Marfin Egnatia Bank SA spread quickly and tragically resulted in three deaths.[Read more...]