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9 scenarios and all lead to stock plunge - (www.marketwatch.com) “Is the U.S. Condemned by History to Slow
Growth?” asks Bloomberg BusinessWeek. Yes. But for traders and investors, it’s
far worse than just bearish slow growth. Plan for no growth or zero growth. Why?
Wall Street, America and the world economy are in the early stages of a long
era of “de-growth,” a reversal of economic growth and reduction in market
growth as population growth adds new stresses on commodities resources, creates
unrest, disasters and wars. Big problems ahead. Please listen: Earnings growth
is in a long slowdown in all of the following nine scenarios. Economy down.
Earnings down. Stocks down. Trading down. Focus on the long term, on history,
look past the noise about elections and fiscal cliffs. Why? This is an economic
“perfect storm.” All nine scenarios end in bad news for all markets, spell
danger for your future income, your family’s security. Start planning now.
The Coming Economic Hurricane Will Be Worse Than 2008 – (www.investmentwatchblog.com) I believe the global economy
stands on the brink of meltdown. The immediate trigger of this collapse is the
European Debt Crisis, but the build up to this catastrophe has been building
for years and decades. Three of the major drivers of Global economic
growth:
the US, Europe, and mainland China , are all on the verge of economic slowdown,
if not outright collapse. Usually, if one region of the globe is contracting
other regions are growing and able to take up the economic ‘slack’. For the
first time in modern history, all regions are slowing at once. This is
uncharted economic territory. I will
look individually at how each region got into the economic malaise it is in and
what some consequences may be. EUROPE: Greece is the poster child for Europe’s economic
problems, but they are not alone. Europeans have lived beyond
their financial means for decades and now the bill is coming due.
growth:
the US, Europe, and mainland China , are all on the verge of economic slowdown,
if not outright collapse. Usually, if one region of the globe is contracting
other regions are growing and able to take up the economic ‘slack’. For the
first time in modern history, all regions are slowing at once. This is
uncharted economic territory. I will
look individually at how each region got into the economic malaise it is in and
what some consequences may be. EUROPE: Greece is the poster child for Europe’s economic
problems, but they are not alone. Europeans have lived beyond
their financial means for decades and now the bill is coming due.
Cameron Faces Revolt as Conservatives Demand EU Budget Cut -
(www.bloomberg.com) U.K. Prime Minister David
Cameron gave his strongest signal yet he will veto any increase in the European
Union’s budget as he sought to pacify rebel Conservative lawmakers before a
House of Commons debate. Lawmakers will vote today on an amendment put forward
by euroskeptic Conservatives that demands a cut in the EU’s budget,
highlighting splits in the party over Europe.
Cameron has previously said he’ll push for a freeze in real terms in the bloc’s
spending over the seven years starting in 2014, a stance criticized by some
lawmakers as not aggressive enough.
U.S. Insurers Slump as Trading Resumes After Sandy - (www.bloomberg.com) U.S. property insurers declined on the first trading
day in New York after Atlantic superstorm Sandy lashed the U.S. and a risk
modeling firm said the damage could cost the industry as much as $15 billion. Allstate Corp. (ALL), the largest publicly
traded U.S. home insurer, dropped 1.3 percent to $39.62 at 9:44 a.m. in New
York. American International Group Inc. (AIG) slipped
0.9 percent and Travelers Cos. dropped 1.3 percent. The storm will probably
cost insurers $7 billion to $15 billion, AIR Worldwide said yesterday, an
estimate that accounts for physical damage to property, business-interruption
coverage and additional expenses for displaced residential policyholders. The higher
figure would make Sandy the third costliest U.S.
hurricane, after Katrina, which caused more than $40 billion in losses in 2005,
and 1992’s Hurricane Andrew.
Banks tighten euro zone loan standards, see more coming - ECB
- (www.reuters.com) Banks made it harder for firms to
borrow in the third quarter and expect to toughen loan requirements further in
the months ahead even though their own funding constraints have eased, the
European Central Bank said on Wednesday. In its latest quarterly Bank Lending Survey, the ECB said that banks reported an improvement in their
access to retail and wholesale funding across
all funding categories in the third quarter. "Compared with the previous
quarter, the impact of the sovereign debt crisis on banks' credit standards
receded somewhat in the third quarter of 2012."
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