Expected Earnings, Sales And Profit Margins Are Under Squeeze

“Until now, equity prices were supported by better than expected earnings, sales and profit margins. But all three are under squeeze. With slow global economic growth, they’re going to surprise on the downside. We’re going to see the beginning of a correction that’s going to increase volatility and that’s going to increase risk aversion.” - in Bloomberg

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We’re On The Tipping Point Of A Market Correction

Until two weeks ago I’d say markets were shrugging off all these concerns, saying they don’t matter because they were believing the global economic recovery was on track. But I think right now we’re on the tipping point of a market correction. - in Bloomberg

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The ECB Is Overstating The Risk Of Contagion From A Restructuring Of Greek Debt

"Not only is the ECB wrong, but it hasn't even done its homework. It hasn't "presented an exhaustive analysis of the possible channels of contagion, shown history examples, nor suggested ways of preventing it." - in El Economista newspaper

Related: National bank OF Greece (NBG)

Growth Soft Patch Is Becoming A Swamp

Alleged growth "soft patch" is becoming a swamp. Capex spending plunging. US & global growth is weakening while risk-on becomes risk-off - in Nouriel`s Twitter

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China Is Poised For A Sharp Slowdown

"Once increasing fixed investment becomes impossible - most likely after 2013 - China is poised for a sharp slowdown." - in news.xinhuanet.com

Related: iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI), Morgan Stanley China A Share Fund, Inc. (NYSE:CAF), PowerShares Gld Drg Haltr USX China(ETF) (NYSE:PGJ), China Mobile Ltd. (ADR) (Public, NYSE:CHL), China Life Insurance Company Ltd. (ADR) (NYSE:LFC), Aluminum Corp. of China Limited (ADR) (NYSE:ACH) PetroChina Company Limited (ADR) (NYSE:PTR), China Petroleum & Chemical Corp. (ADR) (NYSE:SNP)

The Programme Of Greece is Off-Track

"The programme of Greece is off-track as state asset sales won't make a dent. Even if they were to raise the 50 billion Euros over the 5 years, it wouldn't change anything. Debt restructuring isn't an alternative to austerity, it complements it." - in an interview in Milan

Related: National bank OF Greece (NBG)

The Exchange Rates Game

In this fundamental exchange rate game, the currencies that should be appreciating are those that are undervalued with large current account surpluses.

While the ones that should be depreciating are U.S., U.K. and other countries that had their bubble, then bust, and now need net export growth, given that domestic demand is anemic with balance sheet retrenchment. - in a Bloomberg interview with Tom Keene

DSK: In The Court Of Public Opinion He Is Now Damaged Goods.

"In the court of public opinion he is now damaged goods, even if legally he is innocent until proven guilty." - in RGE.com

Greece: A Haircut Of 20-50% Is Required To Achieve Debt Sustainability

“A haircut of 20-50% is required to achieve debt sustainability. To put things into perspective, it is worth considering the magnitude of haircut required to make debt clearly sustainable. For simplicity at this stage, we consider face-value haircuts in our debt sustainability analysis toolkit and find that a haircut of around 20% on the total stock of debt would allow Greece to achieve a debt-to-GDP ratio of 60% by 2030. This assessment is based on the macroeconomic projections in the IMF’s April 2011 WEO; however, more conservative macroeconomic projections suggest a haircut of around 50% could be necessary.” - in The PragCap

Related: National Bank Of Greece (NBG)

Corporate Earnings Growth Will Likely Disappoint Next Year

Corporate earnings growth will likely disappoint next year because of rising commodity prices and slower-than-expected economic growth.

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So far things have been great. Companies have slashed costs. But on margins and sales things are going to be more difficult from here. Fifteen to twenty percent growth in earnings next year is frankly farfetched. - in the SkyBridge Alternatives Conference in Las Vegas

First Quarter Growth Was A Bit Of A Disaster For US Economic Growth

The first quarter was “a bit of a disaster for US economic growth, with the 1.8 percent increase in gross domestic product well below initial forecasts well north of 3 percent. - in CNBC.com

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Jobless Rate Is Heading To 9.8 percent

"The jobless rate, which recently grew to 9 percent, is likely headed for 9.8 percent in a year while economic growth will be less than 2 percent" - in CNBC

US Economy: Another Year Of Rising Unemployment

The US faces another year of rising unemployment and subpar growth as hopes for a recovery give way to a global slowdown. - in CNBC.com

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The Periphery Of The European Union Is A Disaster

“The periphery of the European Union is basically a disaster.” - in CNBC

Related: National Bank of Greece (ADR) (NBG), Bank of Ireland (ADR) (IRE), Allied Irish Banks, plc. (ADR) (AIB), iShares MSCI Spain Index (ETF) (NYSE:EWP)

Is Inflation An Option To Reduce Unsustainable Debt Burdens?

Is high inflation the desirable way to reduce unsustainable debt burdens, and are policy makers likely to take that option? - in roubini.com

The Path Of Greek Public Debt Is Manifestly Unsustainable

The path of Greek public debt is manifestly unsustainable. Fiscal austerity and structural reforms are necessary but will not suffice.

In the best-case scenario, incorporating a 10 percent of GDP fiscal adjustment and structural reforms: Greek public debt to GDP peaks around 160 percent before “stabilizing.”

It is more likely that the debt ratio will exceed 160 percent and, left untended, will render market access both before and even after 2013 severely limited (or effectively non-existent). - in FT Alphaville

Related: National Bank of Greece (ADR) (NBG)

We Will See More Financial Crisis

We'll see more financial crises – we cannot avoid them until there is a more radical reform of the banking system. - in CNBC

Related: Bank Of America (BAC), Citigroup (C), JP Morgan Chase (JPM), Goldman Sachs (GS), Wells Fargo (WFC), HSBC Holdings plc (ADR) (HBC)

The ECB Is Tightening Too Soon

Unfortunately the ECB has started to increase interest rates, these increasing interest rates are leading to a strengthening of the euro. The euro becoming stronger and stronger is preventing the resumption of economic growth.

"If there is not going to be economic growth their peripheral eurozone economies own fiscal problems - too much public debt, too much private debt - will never be resolved.

"A weaker euro would help them to grow out of their own recessions. Maybe the ECB is tightening to much, too fast, too soon. - in BBC

I Don`t Believe There`s A High Risk Of Inflation

I don't believe there's a high risk of inflation. If commodity prices get too high, that could double-dip the world economy and cause disinflationary pressure. - Nouriel Roubini at a recent conference sponsored by the nonprofit Milken Institute

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The Risks Of Rising Oil Prices

"If oil rises in price by 20 percent, then there is the risk of recession in the economies of the leading Western countries." - in The Voices Of Russia

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The Bond Market Vigilantes Have Already Woken Up In The Periphery Of The Eurozone. They Have Not Woken Up Yet In The U.S., U.K And Japan

"We have to address own problems. If you're looking at advanced economies, there's a series of problems that are going to remain with us, leaving aside geopolitical challenges we're facing.

We're coming out of the balance sheets of a recession. We have excesses of debt and leverage in the housing sector, in the financial system and in the government sector, both state and local and federal level. That's a problem in the U.S., in the Eurozone, in Japan, in the most advanced economies. There is a problem of sovereign risk. The bond market vigilantes have already woken up in the periphery of the Eurozone. They have not woken up yet in the U.S., or U.K and Japan."

In Bloomberg TV

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