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Italy's Borrowing Costs Rise Amid Uncertainty About Rescue - (www.nytimes.com) Italy’s borrowing costs rose sharply at an auction of government debt Friday, raising fears that the luster was already coming off the euro-zone bailout announced less than two days earlier. European Union and International Monetary Fund officials hoped that the deal announced early Thursday would soothe market anxiety by easing the terms of Greece’s debt repayments enough to avoid default, as well as by building a war chest for safeguarding the larger Italian and Spanish economies against possible contagion. Italy was supposed to help its own case this week by producing concrete evidence that it was streamlining its economy and cutting public debt.
Europe's rescue euphoria threatened as Portugal enters 'Grecian vortex' - (www.telegraph.co.uk) Monetary contraction in Portugal has intensified at an alarming pace and is mimicking the pattern seen in Greece before its economy spiralled out of control, raising concerns that the EU summit deal may soon washed over by fast-moving events. Data released by the European Central Bank show that real M1 deposits in Portugal have fallen at an annualised rate of 21pc over the past six months, buckling violently in September. "Portugal appears to have entered a Grecian vortex and monetary trends have deteriorated sharply in Spain, with a decline of 8.4pc," said Simon Ward, from Henderson Global Investors. Mr Ward said the ECB must cut interest rates "immediately" and launch a full-scale blitz of quantitative easing of up to 10pc of eurozone GDP. The M1 data - cash and current accounts - is watched by experts as a leading indicator for the economy six months to a year ahead. It has been an accurate warning signal for each stage of the crisis since 2007.
Bank's collapse in Europe points to global risks - (www.nytimes.com) As Europe’s debt crisis has deepened, a recurring question is how much risk it poses to the United States economy, and especially American banks. While American financial institutions have sought to limit any damage by reducing their loans and thus lowering their direct exposure to Europe’s problems, the recent rescue of the Belgian-French bank Dexia shows that there are indirect exposures that are less known and understood — and potentially worrisome. Dexia’s problems are not entirely caused by Europe’s debt crisis, but some issues in its case are a matter of broader debate. Among them are how much of a bailout banks should get, and the size of the losses they should take on loans that governments cannot repay.
Marine Scott Olsen Will Undergo Brain Surgery, And OccupyMARINES Are Making Demands - (www.businessinsider.com) After being struck by a projectile at Tuesday's Occupy Oakland evictions, Iraq war veteran Scott Olsen is lucid and awaiting brain surgery. The Guardian reports Olsen "responded with a very large smile" when his parents arrived from Wisconsin to visit him at the hospital. Medical officials say Olsen's able to write and hear, but is having trouble speaking. Meanwhile, Oakland's Mayor Jean Quan who left town after authorizing the raid, has separated herself from the police. Quan said, "I only asked the chief to do one thing: to do it when it was the safest for both the police and the demonstrators."
Greek Credit Default Swaps Are A Sham And It's No Surprise - (www.businessinsider.com) At least it's not a surprise to any financial professional that has paid attention to the false reassurances that the International Swaps and Derivatives Association, Inc. (ISDA) has given over the years to naive participants in the credit derivatives market. "Customers" that accepted ISDA documentation when buying credit default protection on Greece are now discovering that ISDA defends the position that a 50% discount on Greek debt is "voluntary" and therefore not a credit event for credit default swap payment purposes according to its documents. This makes the ISDA "standard" credit default swap (CDS) ineffective as a hedge for the widened spreads (reduced price) of Greek debt, and it makes it ineffective as a protection against default using reasonable standards of impairment to define default. ISDA can defend ambiguous definitions so that payment on the credit default swap is virtually impossible
Americans ‘Hooked on Government’ as Record Number Get Benefits - (www.businessweek.com)
Why the summit to end all summits solves nothing - (www.telegraph.co.uk)
Unemployment claims fall (a little) - (money.cnn.com)
US Economy Shows Modest Growth - (www.nytimes.com)
Euro deal leaves much to do on rescue fund, Greek debt - (www.reuters.com)
EU crisis talks in limbo after crucial summit is cancelled - (www.telegraph.co.uk)
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