Citi chief economist Willem Buiter is credited with inventing the term Grexit (or Greek exit from the Euro) according to William L. Watts of MarketWatch. Only a year ago, big firms, countries (and panicked pundits) were preparing for Greece to exit the Eurozone and start using its old Drachma currency. Now not only do few see that as a possibility but even Buiter has thrown in the towel. According to a new report from Citi, Buiter sees a Grexit as unlikely....
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For the last 20 years China’s economy has relied heavily on exports to Western markets, such as the United States and European Union. Now, rapidly rising wages and a booming economy suggest that China may be on the verge of shifting from export driven growth to meeting consumer demand. Through the course of 2012, private sector wages in China rose by a stunning 14 percent. This rapid growth in wages came even as economic...
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The web is filled with reports that Greece is recovering, but is it really improving a report from Bloomberg evaluates. Positive News For Greece In good news, euro area’s finance ministers have agreed to provide the bailout funds amounting to 7.5 billion euros ($9.6 billion) to Greece of which 4.2 billion euros were issued over the weekend and the balance will be released in June, provided the country fulfills some conditions. Following the...
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This could well be a season of corporate turnarounds. As U.S. equities continue to trend higher on better results and an improving economy, even laggards and beaten down stocks such as Thompson Creek Metals Company Inc (NYSE:TC), Arch Coal Inc (NYSE:ACI), and Molycorp Inc (NYSE:MCP) are now recovering. Is it worth considering putting your money in these stocks? Here is a closer look: Thompson Creek Metals Company Inc (TC) Discount Per Share Thompson Creek...
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My view is that there is no such thing as a free lunch, not even for governments or central banks. Any action taken may have benefits, but also imposes costs, even if those costs are imposed upon others. So it is for the Fed. At the beginning of 2008, they had a small, clean, low duration (less than three years) balance sheet on assets. Today the asset side of their balance sheet is much...
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Facebook Inc (NASDAQ:FB), Yelp Inc (NYSE:YELP), and Shutterfly, Inc. (NASDAQ:SFLY) are among the internet stocks which have recently posted quarterly results and going by what these companies have reported, the Internet pack is again showing signs of life Facebook Inc (NASDAQ:FB) Improved Financial Performance Facebook Inc (NASDAQ:FB) posted vastly improved financial performance on the back of strong showing in its mobile division. The social network said its first quarter revenues grew 38 percent to $1.46 billion...
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Former Bank of America Wealth Management President Sallie Krawcheck spoke with FOX Business Network’s (FBN) Liz Claman about the United States economy and its weaknesses. Sallie Krawcheck said that “money funds remain a vulnerability.” When asked whether we have resolved “too big to fail” and what would happen if JPMorgan Chase & Co. (NYSE:JPM) or Goldman Sachs Group, Inc. (NYSE:GS) failed, she said, “We all should cross our fingers very hard that we don’t have...
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On the economics side of the information flow absorbed by markets over the past few days, the housing market data came in relatively moderate, with prices indicating some confidence in the future of the demand side. Among this weeks’ big figures are the Census Bureau’s durable goods orders. Of the entire information released, two are generally considered by market observers as most influential in giving an indication of where the economy is heading: the...
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Today the Commerce Department and the Conference Board gave us the final two economic indicators of this week. The advanced quarterly GDP figure for the first quarter of 2013 came in at +2.5 percent, representing a decent acceleration from the 0.4 percent of the prior quarter. The details of the GDP data show a private sector continues to grow at a reasonably moderate pace despite growth stunting tax burden increases and small federal spending...
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As the economy has boomed in Myanmar, costs for rent are skyrocketing, while widespread electricity shortages are hampering economic growth. While Myanmar has been one of the bright spots of news in recent months, there are risks going forward. After decades of suppression, the country finally appears to be turning the corner and is serious about installing much needed reforms. As a result, sanctions have come tumbling down and a flood of foreign investors...
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At a recent event at the Wine Country Conference, Jim Chanos of Kynikos Capital Management, one of the world’s foremost experts on China’s economy and one of the world’s most prominent short sellers, explained the financial crisis that China has already started, and the dominoes that look like they are ready to fall. The pillars of Chanos’ thesis are the property bubble, corruption, rising costs and growing dissatisfaction among the nation’s workers. The Chinese property...
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