Posts belonging to Category shutdown

US debt default would be like Lehman crash

Raising the debt ceiling

A U.S. debt default would create significant confusion and uncertainty in financial markets and could prove as catastrophic as the failure of Lehman Brothers in 2008, the Organization for Economic Cooperation and Development (OECD) said in a new report.

Lawmakers in the U.S. side-stepped a debt default at the 11th eleventh hour in October and brought an end to prolonged negotiations over raising the debt ceiling. But talks are set to resume in the new year with the debt ceiling extended until February 7 and funding approved until January 15.

“An outright default would have extremely severe effects” the OECD said in the report, released on Tuesday.…  Mon.,  12  June 2017

Greek banks

The three-week shutdown of Greek banks has cost the country’s struggling economy some 3.0 billion euros (3.3 billion) not counting lost tourism revenue, … — Sun, 19 Jul 2015 22:06:01 -0700

Obama Economics

Or since then, come to think of it. But that number has also doubled during the Obama years and it is inconsistent with the idea that the economy has ‘recovered.’ Indeed, in 2008, one in eight children was on food stamps; today’s percentage of … — Sun, 08 Feb 2015 23:24:00 -0800

Good day everyone, and I hope those who had a long w-e are well rested or at least up to speed with the gardening despite the rain! And of course welcome back Eamonn! Various bits and pieces coming up today datawise and Draghi makes … — Mon, 26 May 2014 22:26:28 -0700
8 Denmark’s fixed exchange rate regime and the delayed recovery from the Global Financial Crisis: A comparative macroeconomic analysis. Thomas Barnebeck Andersen and Nikolaj Malchow-Møller Department of Business and Economics, …
          / — Mon, 26 May 2014 21:43:16 -0700
But in short, he reckons cash is a better protection against asset price deflation which is most probably where the global economy is heading next. Gold is better as a way to beat the inflation that will follow as the global money printing saga … — Mon, 26 May 2014 20:49:15 -0700

Economic data Tuesday 15th April 2014

Ryan Littlestone has been working in financial markets for more than 20 years. Wide-eyed, he stepped out of Bank station in London to join LME founding member Rudolf Wolff where he worked his way to the main order desk and brokered customer orders to the LME floor and across virtually every global market. An opportunity to help set up and run a new LIFFE floor operation saw him catch the trading bug and it wasn’t long before the pull of the pits was too great to refuse. — Mon, 14 Apr 2014 21:42:16 -0700
That would be less than half the pace of growth in the years before the global financial crisis in 2008. While financing raised through foreign direct investment and remittances will help the region absorb the impact of external shocks, some … — Tue, 15 Apr 2014 00:00:00 -0700
Mish’s financial blog covers global news and macroeconomic events regarding the world economy. The blog’s primary focus is inflation, deflation, and hyperinflation topics, especially currencies, gold, silver, crude, oil, energy and precious … — Mon, 14 Apr 2014 23:10:00 -0700
In the aftermath of the 2008 financial collapse and the ensuing global recession, at least a million Philippine jobs are either at risk over the next 12 months or are already evaporating as of this writing. As rich societies feeling the pinch turn … — Mon, 14 Apr 2014 22:36:17 -0700
According to the new report, there is plenty of reason to hope that change now would help the climate by a lot and it will only affect global economic growth by 0.6 percent annually. Basically, it will not cost too … Meanwhile, Finance Minister Joe Hockey, Environment Minister Greg Hunt, and Tony Abbott himself have continued to hammer home their message of cutting the carbon tax, despite being completely at odds with the best recommendations of the experts. They have been silent, … — Mon, 14 Apr 2014 21:08:03 -0700

Global economic data releases today. … What time’s the ticker tape parade to celebrate the fact that the end of the world has been kicked down the road for another few months ? USD performance has been less than impressive as markets … — Wed, 16 Oct 2013 22:03:16 -0700
2013/10/16 – Congress approved an 11th-hour deal to end a partial government shutdown and pull the world’s biggest economy back from the brink of a historic debt default that could have threatened financial calamity on Wednesday. … Capping weeks of political brinkmanship that had unnerved global markets, President Barack Obama quickly signed the spending measure, which passed the Senate and House of Representatives after Republicans dropped efforts to use the … — Wed, 16 Oct 2013 21:41:00 -0700
Financial leaders speculate that a failure to raise the debt ceiling could trigger higher interest rates, stalled growth, or even a global recession reminiscent of (or worse than) the one caused by the collapse of Lehman Brothers in 2008. — Wed, 16 Oct 2013 20:40:00 -0700
Three months is not a long time in politics or financial markets. Gold prices rose. … Economists say the government shutdown has wiped about 0.4 per cent off US economic growth this quarter. … Then there is the global economic environment. — Wed, 16 Oct 2013 19:51:59 -0700


Given the current fragility of financial markets and a high level of indebtedness of some countries and some large financial institutions, such a rise could eventually turn out to be destabilising for the world economy. It would also lead to the gradual decline of the US dollar as … In short, the US is permitted to live beyond its means and, in return, it provides liquidity for international financial dealings and international trade. The gradual decline of the US dollar’s reserve currency would … — Wed, 16 Oct 2013 12:26:30 -0700

“This is now back on track,” Democratic Senator Heidi Heitkamp told CNN late on Tuesday, after a day of chaotic developments that frayed the nerves of many members of Congress and global financial markets. McConnell and Reid resumed stalled talks after a … But analysts warn that a default on government obligations could quickly follow, potentially causing the U.S. financial sector to freeze up and threatening the global economy. The U.S. Treasury Department seized on Fitch’s … — Tue, 15 Oct 2013 22:20:06 -0700
Independent economists have warned that the international financial system’s reliance on the American economy (and U.S. Treasury bills) mean that the global economy could face a fresh contraction, possibly a severe recession. On Tuesday … — Tue, 15 Oct 2013 18:57:44 -0700
Britain emerged from the devastation of the First World War an irreparably damaged economic and military power, with crushing debts and a deeply impaired manufacturing sector. The dollar was able quickly to usurp the pound’s position. … exports and reducing the value of its remaining portfolio of dollar assets. I’d been part of the received wisdom that any act of US default would set off a devastating chain reaction of bankruptcies that would provoke a second global financial crisis. — Tue, 15 Oct 2013 17:44:44 -0700


Anyone who remembers the collapse of Lehman Brothers Holdings Inc. little more than five years ago knows what a global financial disaster is. … unprecedented in modern history — will devastate stock markets from Brazil to Zurich, halt a $5 trillion lending mechanism for investors who rely on Treasuries, blow up borrowing costs for billions of people and companies, ravage the dollar and throw the U.S. and world economies into a recession that probably would become a depression. — Tue, 15 Oct 2013 17:03:32 -0700
What is portrayed by the Institute of International Finance panelists (who are the leaders of the world’s largest banking conglomerates) is tantamount to an Economics 101 analysis of market adjustment, which casually excludes the known fact … — Tue, 15 Oct 2013 17:01:40 -0700
Well the entire global economy and all of finance has bet gargantuan sums of money that this non-creditworthy country will never default for no fucking margins. By all means, how do you think this ends? Frankly, I don’t care anymore, and am … — Tue, 15 Oct 2013 16:20:35 -0700