(Reuters) - Grim. Serious. Terrifying. Nerve-rattling. These are the words some prominent American investors and strategists are using to describe the worsening debt crisis in the euro zone and its impact on the global economy. While growth has been slowing in China and the United States and companies warn about the effect on earnings, there is a mounting sense among the financial community that politicians and markets are operating on two completely different timelines. ...
Grim. Serious. Terrifying. Nerve-rattling. These are the words some prominent American investors and strategists are using to describe the worsening debt crisis in the euro zone and its impact on the global ...
Grim. Serious. Terrifying. Nerve-rattling. These are the words some prominent American investors and strategists are using to describe the worsening debt crisis in the euro zone and its impact on the global economy.
By Pater Tenebrarum:
Not Even Germany Can Pull It Up – Sixth Negative Quarter in a Row
The economic news from Europe isn't getting any better, in spite of the abatement of crisis conditions in the financial markets. Once again the news were "worse than expected", which has become standard operating procedure. Reuters informs us:
Shane Lofgren submits: In a past article, I wrote that stock prices were falling on nothing more than fear. The fundamentals of the global economy were sound, the EU was taking the least bad steps to resolve their sovereign debt issues and soon fear would turn into greed and stock prices would come roaring back.
Companies around the world are starting to share the exuberance that inspired investors last year.
As executives gather in Davos, Switzerland, this week for the World Economic Forum’s annual meeting, business confidence is rising, with a weekly gauge compiled by Moody’s Analytics Inc. at its highest level since the survey began in 2003.
This is an unedited version of my Sunday Times column from October 6, 2013.Newton’s Third Law of Motion postulates that to every action, there is always an equal and opposite reaction. Alas, as recent economic history suggests, physics laws do not apply to economics.
Commodity prices tumbled this week, mirroring the situation on global stock markets, as fears of a new worldwide recession amid a worsening eurozone debt crisis saw investors seek refuge in the dollar.The US Federal Reserve on Wednesday warned of significant downside risks to the American economy, sparking a fierce selloff on global markets.G20 leaders meanwhile urged the eurozone to tackle its debt crisis to prevent contagion spreading across the world, while similar warnings were sounded by the European Central Bank, the World Bank and the International Monetary Fund.
In the shadow of the euro crisis and America’s fiscal cliff, it is easy to ignore the global economy’s long-term problems. But, while we focus on immediate concerns, they continue to fester, and we overlook them at our peril. The most serious is global warming.
Article written by Prieur du Plessis, editor of the Investment Postcards from Cape Town blog.I have recently been interviewed by the South African media on a number of issues regarding the global economy and markets. An edited version, in Q & A format, is provided below.The rout in global financial markets is continuing, characterized by extreme swings of up to 5% in some markets. What is the reason behind the extreme volatilities in the markets?