Thursday, July 7, 2011
Portugal Junked: 'Bailouts - outrageous anti-taxpayer scam'
Europe's ongoing struggle to save the Euro has been dealt another blow as Portugal has had its debt downgraded to junk status. Moody's, the credit rating agency behind the move, says a default is likely unless the country is given another bailout. Many analysts have questioned the logic of saddling struggling economies with more debt as speculation grows over whether the EU is ready to come to Portugal's rescue again. And the direction the EU and the IMF are taking in solving this crisis may well lead to severe consequences - that's according to Douglas Carswell, an MP from the British Conservative Party.
Perils of Imperialism
by PressTVGlobalNews on 5 Jul 2011
The Fourth of July: the day America celebrates its independence. Historically it was when the US gained independence from British rule, through the American Revolution, marked by the Declaration of Independence. But is the America of today, involved militarily in 6 countries, violating the independence and sovereignty of other nations, as it celebrates its own, and at what cost?
Gold Price Will Increase in 2011, Says Terranova
June 30 (Bloomberg) -- Frank Terranova, chief executive officer of Allied Gold Ltd., talks about the outlook for the price of gold. He speaks with Francine Lacqua on Bloomberg Television’s “On the Move.”
Certifigate - Mathematical 'proof' Obama birth certificate a forgery
From WND:The signature of President Obama's mother on the White House-released long-form birth certificate provides a mathematically certain proof of forgery, according to a prominent software engineer who works as a high-level programmer for a state government.
Many computer experts have noted that the PDF Obama birth certificate released April 27 has nine layers when viewed in Adobe Illustrator. Read more: Mathematical 'proof' Obama birth certificate a forgery http://www.wnd.com/?pageId=319221#ixzz1RMyD1hfv
Continued Portuguese & Irish debt concerns push Silver & Gold higher as Safe Haven trades
From Bloomberg.com:
Portugal’s downgrade to junk status and wrangling over the role of investors in a new Greek bailout package fueled concern about the solvency of the region’s high- debt nations, sending their bonds tumbling.
The extra yield investors demand to hold Portugal’s 10-year bonds over German bunds surged 148 basis points to a euro-era record 949 after Moody’s slashed yesterday its credit rating four levels to Ba2, below investment grade. The yield on Italy’s 10-year bond reached the highest in almost three years, while Ireland’s 2-year yield topped 15 percent for the first time.
“It’s a reminder that the sovereign debt crisis does not end with Greece and that risks remain with other nations in addition to Greece,” said Gary Pollack, who helps oversee $12 billion as head of fixed-income trading at Deutsche Bank AG’s Private Wealth Management unit in New York.......read on
Ireland’s credit rating may be cut to junk by Moody’s Investors Service after Portugal yesterday lost its investment grade rating, according to analysts.
Moody, which slashed Portugal to Ba2 from Baa1, in April lowered Ireland’s credit rating to the lowest investment grade Baa3 and left country’s outlook on negative.
The ratings company cut Portugal’s rating in part because the nation may not be able to return to debt markets in the second half of 2013. Ireland has been locked out of markets since September, and the yield on 10-year Irish bonds climbed to 12.44 percent today, a euro-area record for the country that agreed to a rescue package with the European Union and International Monetary Fund last November.
“If not re-entering the public funding markets has significance for a sovereign’s rating, then clearly if our view proves correct, then Ireland will suffer an imminent downgrade,” Cathal O’Leary, head of fixed income sales at Dublin-based NCB Stockbrokers, said in a note today.
The yield on Irish two-year notes climbed 239 basis points to 15.27 percent as of 2:35 p.m. in London, the first time it has been above 15 percent......read on
ETFs Face U.K. Serious Fraud Office Review
From Bloomberg.com:
U.K. fraud prosecutors are reviewing how exchange-traded funds are marketed and whether they have the proper tools to prosecute any wrongdoing in the industry, a person directly involved with the probe said.
U.K. fraud prosecutors are reviewing how exchange-traded funds are marketed and whether they have the proper tools to prosecute any wrongdoing in the industry, a person directly involved with the probe said.
The Serious Fraud Office, which prosecutes white collar crime, hired a consultant to interview bankers and lawyers to determine whether there is a risk that sales of the products may involve criminal conduct in the future. The Financial Services Authority and the Bank of England’s Financial Policy Committee have warned of a lack of transparency in the ETF market.
ETFs are exchange-listed products that mirror indexes, commodities, bonds and currencies and allow investors to buy and sell them like stocks. They became more popular in the aftermath of the 2008 selloff that wiped $37 trillion from global equity markets because they carry lower fees than other funds, require lower initial investment than futures, can be traded throughout the day and cover most indexes.
Terry Smith, chief executive officer at London-based inter- dealer broker Tullett Prebon Plc, has said the products often fail to track the underlying asset whose behavior they’re designed follow, are exposed to a provider going bankrupt and vulnerable to short-selling.
The mixture of “people buying things they don’t understand, complex structures, synthetic structures with counterparty risk, and huge short selling without enough assets in the underlying ETF” to meet demand makes the products sound like “something that we’ve been through before,” Smith said.......read on
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