The company’s loss is a stark reminder that the banking system remains vulnerable to market shocks and has heightened concerns that big banks continue to make risky financial bets that could threaten the economy.
WASHINGTON — Just as the global economy has all but recovered from debt-fueled crises in the United States and Europe, economists have a new worry: China. They see a lending bubble there that threatens global growth unless Beijing defuses it.
That’s the view that emerges from an Associated Press survey this month of 30 economists. Still, the economists remain optimistic that Beijing’s high-stakes drive to reform its economy — the world’s second-largest — will bolster Chinese banks, ease the lending bubble and benefit U.S. exporters in the long run.
OTTAWA — Finance Minister Joe Oliver says developments in the Ukraine and Iraq are endangering the global financial and economic recovery, particularly in still fragile Europe.
The minister, who was nearing the conclusion of his trip to the United Kingdom, Germany and Poland, says he has been alerted by Europeans about mounting risks.
He notes that the overall growth rate in Europe remains very low and the latest inflation reading was only 0.5%.
Today’s AM fix was USD 1,308.25, EUR 984.46 and GBP 827.12 per ounce.Yesterday’s AM fix was USD 1,340.25, EUR 1,008.54 and GBP 847.46 per ounce. Gold fell $41.60 or 3.05% yesterday, closing at $1,323/oz. Silver slid $1.31 or 5.66%, closing at $21.83. At 3:01 EDT, Platinum fell $28.60 or 2% to $1,437/oz, while palladium fell $2.03 or .3% to $688.47/oz.
In my interview with Sen. Carl Levin today, he said that "the nature of Wall Street's function has changed. They still argue that they're providing capital and stimulating innovation, and to some extent they are. But there's been a significant shift here to the model where they're out for themselves. Their client is themselves."