May 12, 2011

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)

May 11, 2011

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

May 10, 2011

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)

May 9, 2011

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)

May 7, 2011

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

May 6, 2011

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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May 5, 2011

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

Related ETF`s: SPDR S&P 500 ETF (NYSE:SPY), iShares Russell 2000 Index (ETF) (NYSE:IWM), ProShares UltraShort S&P500 (ETF) (NYSE:SDS), ProShares UltraShort QQQ (ETF) (NYSE:QID), SPDR Dow Jones Industrial Average ETF (NYSE:DIA)

May 4, 2011

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

Related: ProShares UltraShort 20+ Year Treasuries (ETF) (TBT), iShares Barclays 20+ Yr Treasury Bond (ETF) (TLT)