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Economic News Articles – Archive for Week of 12-11-11

I’m going to start posting a weekly recap of the economic news headlines. These headlines of news articles and their summaries come and go from the sidebar, so not everyone sees them on the particular day they tune in. This is a chance to make sure you didn’t miss any of the major economic news of the week or a way to go back and find stories you read earlier that you want to revisit. (Until now, the headlines have been on the sidebar for about a week and then just evaporated.)

Economic success stories in the headlines:

Euro crisis updates in the economic news this week:

  • Chronic Pain for the Euro With mounds of European debt due to be refinanced early next year, the crisis is far from over. “More tests will obviously come, and soon,” perhaps as early as the opening of financial markets on Monday.
  • Debt repayment is driving the EU back to recession The EU is huddling closer together against the chill winds blowing from the debt markets with only a T-shirt and shorts for cover. They need to buy themselves some winter warmers, but all the spare money in the kitty is going to pay debt.
  • EU Chief: The Time Has Come for a Federal Europe A HUGE European superstate is the only solution to the economic crisis engulfing the continent, the President of the European Commission declared today.
  • Europe’s fiscal agreement falls short for global markets European leaders failed to convince investors they are solving their massive problems. Two more Wall Street credit agencies issued warnings. “The longer the incremental approach persists, the greater likelihood of multiple defaults by euro area countries.
  • Euro Leaders Hail Accord as Bundesbank Cools ECB Speculation European leaders pressed the case that a new fiscal accord will deliver the region from its two- year debt crisis, as Germany’s top central banker cooled speculation the European Central Bank will extend its role.
  • Eurozone crisis: hopes of recovery recede while recession looms 2011 ends with the euro fighting for its life, Britain considering life outside the EU, China fending off a hard landing, America in political gridlock, and unemployment globally above 200 million and rising. Apart from that, it’s a great recession.
  • Eurozone crisis is no longer simply a sovereign debt problemAs in the 2008 banking crisis, interbank lending has started to decline as banks are increasingly concerned about the Eurozone sovereign debt held by their peers. Interbank lending is likely to decline further as the sovereign debt crisis drags on.
  • Eurozone fiscal pact fails to restore confidence The first draft of a new treaty should be ready by early next week. Sarkozy said the aim was to have it ratified by all member states except Britain by June. “You have to understand this is the birth of a different Europe – the Europe of the euro zone.
  • Eurozone Exits “May Spark Deep Global Depression” A dire warning of possible “wealth destruction” by the Organization for Economic Cooperation & Development. While the Wall Street crash of ’29 sparked the Great Depression, the crash of European banks two years later cemented a decade of misery.
  • Fitch: comprehensive euro zone deal “beyond reach” Fitch concluded that “a ‘comprehensive solution’ to the eurozone crisis is technically and politically beyond reach”: Too much austerity may split Europe. Banks resisting pressure to buy euro debt. Greek bondholder haircut deal still uncertain.
  • Markets prepare for turmoil over fears of new European credit crunch Serious doubts about the legal basis of last Friday’s agreement on a “fiscal compact” for the eurozone could provoke fresh turbulence on markets this week…. The nervousness is heightened by continued arguments over the scale and nature of any intervention
  • Merkel’s Path: Brinkmanship for Debt Crisis Merkel seems shockingly aloof about market turmoil. But, as European leaders prepare for crucial meetings this week, what may have seemed like bumbling leadership is looking like consistent strategy aimed at remaking the euro zone in Germany’s likeness.
  • New Rifts on Euro Emerge French officials promised not to leave Brussels until a “powerful” deal was reached to save the euro. But senior German officials expressed more pessimism, saying that Berlin opposed a “quick fix” agreement. Instead, they insisted on full treaty changes.
  • New Strains Hit Euro, Global Markets Uncertainty in financial markets deepened as Italy’s borrowing costs soared to euro-era highs. European leaders understood an Italian collapse would mean “the end of the euro.” Stocks in the U.S. had their worst Thanksgiving week since 1942. Monday will s
  • S&P Warns of Broad EU Downgrade Over Debt CrisisStandard & Poor’s on Monday warned it may carry out an unprecedented mass downgrade on the credit ratings of euro zone countries if EU leaders fail to reach an agreement on how to solve the region’s debt crisis in a summit later this week.
  • Stocks Slide on Euro Fears, Ending Rally “It appears that Europe’s nightmare has not gone away after all, with investors rethinking Friday’s immediately positive response,” said chief economist strategist at Miller Tabak. “The single euro currency is once again trawling the depths of despair….”
  • The euro zone: Is this really the end? Euro break-up would cause global bust worse even than 2008. Chances of the euro zone’s destruction have risen alarmingly, thanks to financial panic, a rapidly weakening economic outlook and pigheaded brinkmanship. Odds of safe landing are dwindling fast.
  • Wall Street tumbles on Euro Crisis Plan and Credit Rating Agency Announcements Stocks tumbled on Monday, as concerns about Europe returned to the forefront after major credit ratings agencies warned that European leaders had not done enough to tackle the region’s debt crisis.
  • Why We Can’t Escape the Eurocrisis The recently announced debt plan in the European Union comes up short in almost all respects. The debt crisis is not just an EU problem, but a trans-Atlantic financial crisis.

Housing economic crisis articles:

  • Existing home sales to be revised lower If you thought the U.S. housing market couldn’t get worse, think again. Far fewer homes sold over the past five years than previously estimated. The National Association of Realtors will downwardly revise sales of previously-owned homes back to 2007.

Articles of Justice, where is Justice during the Great Recession?

Occupy Wall Street (OWS) / Occupy Movement news articles:

US bank credit crisis in this week’s economic news:

  • Fitch downgrades world’s top banks Fitch downgraded the credit ratings of Bank of America, Morgan Stanley and Goldman Sachs, as well as Europe’s Barclays, Societe Generale, BNP Paribas and even Germany’s Deutsche Bank and Switerzland’s Credit Suisse.

US Federal Reserve moves and blunders in the week’s economic headlines:

 

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