Global Economic Collapse Is Now In Progress: U.S. GDP Revised Lower, FedEx, Capterpillar Reports Raise Red Flags, Europe May Have Just Run Out Its Luck, InvestmentNews Warns Bond Crash Dead Ahead, And Ben Bernanke States Cyprus Bank Levy Is Possible Here In The US!
No Surprises From FOMC – Statement Redline Comparison
- *FED SEES ECONOMY RETURNING TO MODERATE GROWTH AFTER Q4 PAUSE
- *FED CONTINUES TO SEE DOWNSIDE RISKS TO ECONOMIC OUTLOOK
- *FED MAINTAINS $85 BILLION MONTHLY PACE OF BOND BUYING
- *FED SAYS FISCAL POLICY HAS BECOME SOMEWHAT MORE RESTRICTIVE
Europe Is A Complete Disaster, And Its Luck May Have Just Run Out
What just happened in Cyprus has always been a risk.
…
Against the backdrop of bad theory and bad policies, Europe has engaged in a series of ad hoc rescues and bailouts that tamp down flareups where they occur.
And heretofore Europe has actually gotten lucky. All the big votes have gone Europe’s way.
Remember all those Greek austerity votes? They always passed by the skin of their teeth.
Remember the German Supreme Court decision on the legality of the bailouts? It went Europe’s way.
Remember when Slovenia was the center of attention, because it came close to not approving the expanded bailout plan? Slovenia eventually played ball.
And then of course the public elections always turned out okay. In Greece last summer, the conservative New Democracy party narrowly edged out the leftist SYRIZA party. Had SYRIZA won, it would have set up an epic clash, as SYRIZA was not going to go along with the austerity that was demanded by the outside.
It looks like Europe’s luck is running out.
In Italy last month, the election ended inconclusively. The center-left coalition failed to get enough votes (it seems) to form a government, and there might need to be new elections.
FedEx, Capterpillar reports raise red flags
Investors got a double-whammy Wednesday from FedEx and Caterpillar, underscoring why profit growth expectations for S&P 500 companies have been coming down ahead of April’s parade of first-quarter earnings reports.
FedEx /quotes/zigman/254280/quotes/nls/fdx FDX-6.87% and Caterpillar /quotes/zigman/221644/quotes/nls/cat CAT-1.51% both issued disappointing business updates, sending their shares lower as the broader U.S. stock market edged higher. The two, long considered proxies for economic demand world-wide, have been restructuring their businesses to adapt to current conditions.
Global Trade Bellwether FedEx Cuts Outlook, CapEx Forecast, Says May Ground Aircraft
DEUTSCHE BANK: Here’s Why The ECB May Not Rescue Cyprus
It’s probably incentivized to do the opposite.
Following the Cypriot parliament’s total rejection of the controversial bank bailout deal reached by EU finance ministers over the weekend, the ECB released a statement saying that it would provide liquidity to Cyprus ”within the existing rules.”
Emergency Liquidity Assistance is the ECB’s last recourse for euro zone banks that find themselves unable to raise funding in the open market through bonds issuance.
However, as several pointed out following the statement, Cypriot banks probably don’t even qualify for ELA, which means the ECB may have really been saying something more along the lines of “don’t count on it.”
Deutsche Bank economist Gilles Moec explains in a note to clients.
“The provision of ELA funding is normally conditional on the receiving banks remaining intrinsically solvent,” says Moec. “With the prospect of a bank run starting immediately after the expiry of the bank holiday, this condition hardly holds.”
…
Here’s Where The Ugly Consequences Of Easy Monetary Policy Will First Appear
Here’s the chart Minack included demonstrating this potential problem.
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Morgan Stanley |
… FED: THE UNEMPLOYMENT RATE IS GOING TO BE BETTER THAN WE THOUGHT
But GDP will be lower.
However, they also modestly revised lower their expectations for GPD.
Here’s a round up:
- Unemployment rate 2013: 7.3-7.5 percent, down from 7.4-7.7 percent 2014: 6.7-7.0 percent, down from 6.8-7.3 percent 2015: 6.0-6.5 percent, down from 6.0-6.6 percent
- GDP 2013: 2.3-2.8 percent, down from 2.3-3.0 percent 2014: 2.9-3.4 percent, down from 3.0-3.5 percent 2015: 2.9-3.7 percent, down from 3.0-3.7 percent
Read more at http://investmentwatchblog.com
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Whistler Blowers, Insiders
Your article reflects exactly where our economy is going now.I knew that something was coming. This is a very informative post since I am running a small business and things have been extremely slow lately. I have a business loan and one unpaid payday loans that I am obliged to pay off in full the coming month. I have not been really good at making payments since like I said things aren’t that good these days. So your article helps to understand what I can count on in case one day I will not be able to make payments anymore.
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