News Links: Is Germany to Blame for the Euro Crisis or Not?
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FT Alphaville » A pox on all your AAA houses
“No doubt it’s just a coincidence that S&P published new recession scenarios for the eurozone on the same day Brussels began talking about banning sovereign ratings on countries undergoing bail-outs…
However, critically for the EFSF, France would suffer a downgrade no matter what in a double-dip recession, the ratings agency says.”
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Solvent? Who said solvent? – Kantoos Economics
“The German government remains under attack for not „taking leadership“ in the Euro crisis. This rests on the assumption that a known solution is ready to be implemented, but the German government just refuses to accept it. That is wrong.”
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The euro crisis: Why not blame Germany? | The Economist
“Prior to the crisis, all euro-zone countries were able to borrow on terms which suggested that markets believed the full faith of the euro zone as a whole to be behind individual members, and some governments borrowed too much. After the crisis, markets weren’t so sure about what the full faith of the euro zone meant, and spreads between the bonds of different euro-zone governments diverged. “
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Mirabile Dictu! Eurozone to Impose Penalties on Banks That Get Bailouts « naked capitalism
“Eurozone treaty prohibits governments providing permanent subsidies to private companies, and it would be hard to deem a bailout to be “temporary assistance” which is allowed in certain circumstances. This means the toughmindedness is not the result of politicians developing unexpected nerve, but of recognizing there is no way around the existing constraints given how soon weak banks are likely to get in real trouble.”
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Fed debate about more easing heats up | Reuters
“The Federal Reserve should consider buying more mortgage bonds to support a fragile economic recovery, a top Fed official said on Thursday, while two other officials argued the central bank’s current policy is appropriate.”
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Macro and Other Market Musings: Germany’s Role in the Eurozone Crisis
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Greves parciais nos transportes públicos a 8 de Novembro – JN
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Industrial Commodities Swan Diving | Global Macro Monitor
“Take a look at copper, lumber, and rubber. Down big. What does it mean? No doubt a reflection of a slowing global economy and confirms the contracting manufacturing PMIs in many of the emerging economies. Hard landing in China? Don’t know but makes us more vigilant. Stay tuned.”
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Gaddafi dead: Dictator begged for his life before being summarily executed | Mail Online
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Downgrading countries in bailout could be banned, says EU | Business | The Guardian
Credit rating agencies could be banned from downgrading countries in the eurozone’s bailout scheme, Michel Barnier, EU internal market commissioner, has indicated.
Presenting his proposals to reform trading in financial derivatives on Thursday, Barnier suggested the ban could be extended to downgrades of countries negotiating to join the bailout.
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Big shift taking place in home ownership rates – Business News – bellinghamherald.com
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California reportedly subpoenas BofA over toxic securities – latimes.com
“California is trying to determine whether BofA and its Countrywide Financial subsidiary sold investments backed by risky mortgages to investors in California under false pretenses, a source says.”
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Simon Johnson: Huntsman’s Warning on ‘Too Big to Fail’ – NYTimes.com
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Eurozone Leaders Ready €80 Billion Band-Aid for Banking Industry Gunshot Wound « naked capitalism
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How Specific Were Egyptian Protesters’ Demands? | The Big Picture
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Irish economy faces challenges but austerity plan on track – IMF – Irish, Business – Independent.ie
“THE IRISH economy faces major challenges but the austerity measures introduced as part of the €67.5bn EU/ECB/IMF loans are working, according to the bailout partners.”
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Libya’s prime minister says Moammar Kadafi is dead – latimes.com
Libya’s provisional prime minister, Mahmoud Jibril, said Thursday that ousted leader Moammar Kadafi has been killed.
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Franco-German deadlock over ECB’s role in rescue fund – Telegraph
France wants the rescue fund to operate as a bank, able to leverage its rescue power by tapping the ECB’s credit window. This is less likely to endanger the country’s AAA credit
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An analysis of the relationships between 43,000 transnational corporations has identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy.
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