German banks are “uneasy” over the current Irish crisis, and their rivals in other countries are concerned too. Der Spiegel reports that the exposure of Germany’s banks amounts to $138 billion, with Hypo Real Estate leading the way with €10.3 billion in debt. British banks are also exposed to the crisis, holding $150 billion...
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Chinese ratings agency Dagong Global Credit Rating Group made a media splash in July when it launched its sovereign debt ratings by stripping seven developed nations of their AAA ratings, putting nations such as France, Britain, and the U.S. below China. Now the firm has just downgraded the U.S. further, to ‘A+’ from ‘AA’,...
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The U.K. is massively exposed to the debt of nations such as Spain, Greece, and Ireland, according to The International Monetary Fund (IMF). Here’s why what happens to the Eurozone doesn’t stay in the Eurozone: Independent: The IMF said banks could be hit by further woes in troubled countries such as Greece, Ireland and...
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French protests continue to rock France, with marchers throwing Molotov cocktails and blocking fuel supplies. The strikes have gained intensity as high school students have now joined the ruckus, even conveniently blocking access to their own schools according to the Los Angeles Times. What sacrifice they show. Police and youth have clashed in a...
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Famed investor Felix Zulauf nailed the 2009 rally and has predicted a secular bear market beginning in 2010. Yesterday he warned of inflation in a must-listen interview at King World News. Zulauf is still bullish on gold: “The secular case is as solid as it has been for the last few years and that...
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We haven’t heard much from Niall Ferguson lately, but he’s back, and warning of the folly of a second stimulus. Bloomberg: “The risk is that at some point your fiscal policy loses credibility in the eyes of investors,” Ferguson said at the World Knowledge Forum in Seoul. “Then, very quickly, you will find yourself...
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China’s economy has grown so fast, that even as it today towers over most developed nations, and in fact finances their budget deficits… it’s still receiving foreign aid from them: AP: China spent tens of billions of dollars on a dazzling 2008 Olympics. It has sent astronauts into space. It recently became the world’s...
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This update includes notes and a chart on how much the global financial crisis has cost, in context. For example, plummeting stock markets have wiped out 33% of the value of companies, $14.5 trillion. Taxpayers will be bailing out their banks and financial institutions with large amounts of money. US taxpayers alone will spend...
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This update includes notes and a chart on how much the global financial crisis has cost, in context. For example, plummeting stock markets have wiped out 33% of the value of companies, $14.5 trillion. Taxpayers will be bailing out their banks and financial institutions with large amounts of money. US taxpayers alone will spend...
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Linear Technology . Lexmark International Level 3 Communications Lawson Software Land Software
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A few weeks ago, Hedgeye, the investment research firm where I’m a managing director, hosted a conference call for our subscribers that posed the question, “Should U.S. Government Debt Be Rated Junk Status?” Given that debt issued by the U.S. government continues to trade at almost all-time lows in yield, this is a contrarian...
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Question: Looking into the future of the American economy, I see tons of debt, the yoke of increasing social spending, pork-fed bureaucratic waste, the exporting of jobs and the importing of poverty. While this may paint a negative picture, I feel it’s reality. We all want to be patriotic, but aren’t there more fiscally...
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