Recession Fears Reignite as PIIGS, BP, Euro Weigh DOW Way Down
CNBC
Banks In Peril from EU Debt Shell Game: Economist
Any assumption that the financial crisis is behind us is way off the mark, as the European Union is just shifting debt obligatoins between the public and private sector and not dealing with the undelying problem, Monument Securities Chief Economist Stephen Lewis told CNBC Friday...
..."fiscal adjustment will shift the burden of insupportable debt back to the private sector and the banks," he said.
"It will merely reverse the shift that occurred as a consequence of the 2008-09 fiscal stimuli.” Given the banking industry has yet to address many of the problems like the bad loans that led to the crisis, moving debt to the private sector could be disastrous for the industry, according to Lewis...
CNBC
Another 'Freefal' to Push Dow Below 5,000: Strategist
The CBOE volatility index, widely considered the best gauge of fear in the market, is trading above 25 Thursday...
...Our number one focus on this volatility is not about how high the markets are going to go, but when the market is going to make that turn because when it does, we believe that it’s going to go into a complete freefall like we saw in oil back in 2008 that could push the Dow as low as 5,000 or lower by the end of the year,” he said.
Hefty said a “handful of very serious catalysts” are going to push the markets down such as a “disappointing” second quarter GDP and rising foreclosure rates.
“And when we look at China-China’s just another version of Dubai, but in a greater scale...
“And the freefall is due to the fact that our financial system has $17 trillion of leverage and it only takes a handful of hedge funds to get a margin call before we start to see this freefall take place,” added Hefty.
THE HILL
Executives fear double-dip recession, poll finds
An overwhelming majority of executives (84 percent) polled by consulting firm Deloitte are concerned that the economy will reverse course on its recovery and create a double-dip recession...
CNBC
Moody's Mark Zandi: Europe Now Almost Certain To Double Dip, But US Impact Should Be "Manageable"
Banks In Peril from EU Debt Shell Game: Economist
Any assumption that the financial crisis is behind us is way off the mark, as the European Union is just shifting debt obligatoins between the public and private sector and not dealing with the undelying problem, Monument Securities Chief Economist Stephen Lewis told CNBC Friday...
..."fiscal adjustment will shift the burden of insupportable debt back to the private sector and the banks," he said.
"It will merely reverse the shift that occurred as a consequence of the 2008-09 fiscal stimuli.” Given the banking industry has yet to address many of the problems like the bad loans that led to the crisis, moving debt to the private sector could be disastrous for the industry, according to Lewis...
CNBC
Another 'Freefal' to Push Dow Below 5,000: Strategist
The CBOE volatility index, widely considered the best gauge of fear in the market, is trading above 25 Thursday...
...Our number one focus on this volatility is not about how high the markets are going to go, but when the market is going to make that turn because when it does, we believe that it’s going to go into a complete freefall like we saw in oil back in 2008 that could push the Dow as low as 5,000 or lower by the end of the year,” he said.
Hefty said a “handful of very serious catalysts” are going to push the markets down such as a “disappointing” second quarter GDP and rising foreclosure rates.
“And when we look at China-China’s just another version of Dubai, but in a greater scale...
“And the freefall is due to the fact that our financial system has $17 trillion of leverage and it only takes a handful of hedge funds to get a margin call before we start to see this freefall take place,” added Hefty.
THE HILL
Executives fear double-dip recession, poll finds
An overwhelming majority of executives (84 percent) polled by consulting firm Deloitte are concerned that the economy will reverse course on its recovery and create a double-dip recession...
CNBC
Moody's Mark Zandi: Europe Now Almost Certain To Double Dip, But US Impact Should Be "Manageable"