BEIJING | By Andy Xie via Caixin Magazine | As the U.S. continues to normalize interest rates, emerging economies become vulnerable. Brazil and India are at the eye of the storm, but China with its huge property bubble should be wary.
SAO PAULO | By Marcus Nunes | Friedman was right to claim how easy it would have been to avoid the depression, given how easy it was to turn the economy around. Today, on the other hand, we are content with remaining ‘depressed’.
NEW YORK | By Ana Fuentes | Americans blame Bush more than Obama, who seems to be benefiting from the current economic stability. However, everything could change once the Fed stops injecting QE steroids.
MADRID | By Francisco López | In an attempt to end the financial fragmentation of the markets, the ECB makes banks to move their money injected via QE. From now on, marginal lending facility of the ECB would cost them money. The German banks have 100,000 million deposited with the ECB.
It seems like the million-dollar question: what if the ECB stopped sitting on its hands, change its monetary policy and pump some cash into the suffering euro peripheral countries? George Mason University Economics professor Tyler Cowen wonders about the consequences in his blog Marginal Revolution.
Sure, the eurodrama is a fact. But there is a growing interest about investing in the peripheral Europe. Morgan Stanley has conducted a survey among investment managers and 38% of them expect the CDS of the Spanish sovereign bond to be between 150-200bp over the next 12 months.
NEW YORK |The Federal Reserve is perhaps one of the most important political factors behind the slow but steady US economic recovery -the country is growing at a 2.5% pace a year despite Europe’s recession and China’s slowdown-. But also, and here comes a problem, America’s central bank could be behind the crazy Wall Street rally.
MADRID | Will the ECB finally U-turn or would it sit as a quiet spectator while the US Federal Reserve and the Bank of Japan intervene with massive liquidity injections against the credit crunch?
By David Denton | The Richter Scale | The UK QE has merely allowed the banks to off load UK government debt and replace this with other government debt, helping to keep bond prices high but having no impact on the real economy, other than to keep interest rates artificially low.
by Jean Abinader | Jobs and meaningful employment are demands highlighted by the Arab Uprisings that will not go away. Governments are struggling to recast technical and vocational training into effective vehicles for preparing market-ready youth.