The European Central Bank is indebted to the hilt and is beginning to look like one of the banks it has done so much to save.
Having subsidized the European banking industry with its 1 trillion euro ($1.29 trillion) long-term refinancing operation (LTRO), funds that were distributed at well below market prices, the central bank is leveraged to levels Bear Stearns and Lehman Brothers might have felt comfortable with in early 2007.
Category: Global Economy
Another Recession is on the way!
WASHINGTON — Discouraging economic data from around the globe have heightened fears that another recession is on the way.
Fresh evidence emerged Thursday that U.S. home sales and manufacturing are weakening. Signs also surfaced that European banks are increasingly burdened by the region’s debt crisis and sputtering economy.
The rising anxiety ignited a huge sell-off in stocks that led many investors to seek the safety of U.S. Treasurys.
Global Economic Stability Rests on the US and China Finding Common Ground.
Mr Biden is visiting China at the invitation of Mr Xi, as the Obama administration seeks to strengthen ties with the next generation of Chinese leaders.
Speaking in Beijing’s Great Hall of the People, Mr Biden said: “I am absolutely confident that the economic stability of the world rests in no small part on co-operation between the United States and China.”
Global Real Estate Investors
The BRIC (Brazil, Russia, India, and China) countries are the world’s largest emerging economies advancing into the next generation with fast and rapid growth momentum. These countries likely to overtake the US economy and would make up 22 percent of the global economy by 2015. However, the property markets in the BRIC countries are still within reach and expected to flourish in the next 10-15 years. The time may be just right for global real estate investors to make some money investing in these countries.
No double dip (probably)
The economics research team at Goldman Sachs has done excellent work over the past few years; they were among the most prescient forecasters in seeing the economic damage that the housing bust and credit crisis would wreak. So their analysis is worth a particularly close read.