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Greece fail to plan and plan to fail.
Greece's biggest opposition party. New Democracy, refused to back an agree on austerity plan for d 2nd time in a week. Greek prime Ministry (George) has failed to secure from main opposition support in it austerity measures, thus threatening his effort to keep funds flowing and avoid default.
A history we need to learn as one third (one out of three is a civil servant), as politicians fight it out.
A 110 billion euro (S$193 billion) aid package to stem the spread of the regional's sovereign crisis is set for a voluntary extension of bond repayment, 30 billion euros (next year) or may default as Euro mull and race to rescue PIG (Potugal, Ireland and Greece).
teeth53 ( Date: 22-May-2011 12:28) Posted:
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In my own opionion...so long debt is balance off (debt versus nation reserve), rather then do a trade off, and is managable. Our credit rating is AAA.
Nov 24, 2009 (News) $320b the new limit for SG govt borrowings, The govt will be able to issue more securities like bonds, after Parliament approved raising the limit of its borrowings from $250 billion to $320 billion. (We too is living on debt)
Defaulting on BOND in unthinkable, it debt now stood at US$14.29 trillion (S$17.6 trillion) a click away which can plunging U.S. into it ever worst finance disaster again.
How many times has the ceiling been raised? Since March 1962, the debt ceiling has been raised 74 times, according to the Congressional Research Service. Ten of those times have occurred since 2001. Expect more of the same over the next decade. Barring major changes to spending and tax policies, " Congress would repeatedly face demands to raise the debt limit," CRS wrote.
What happens if Congress doesn't raise the debt ceiling before Aug. 2? No one knows for sure. But the going assumption is that no good can come of it.
SGG_SGG ( Date: 21-May-2011 00:05) Posted:
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teeth53 thot: Market direction is still glooming and not doom. More than a year after Greece received a 110 billion euro (S$193 billion) aid package to stem the spread of the regional's sovereign crisis. Greece, the nation's debt is still rising, borrowing cost are near record levels.
Greece as a nation is mulling on risks sovereign default of S$193 billion dollars on it loan.
P.I.G. (Portugal, Ireland and Greece) is shunned by investors as cost to borrowing soar to new record .
Fitch Ratings slashed Greece's credit ratings by three notches to B+, diving deep into the speculative investment range, due to the massive challenges of correcting the country's debt. It rating was based on the expectation that EU and IMF would provide sufficient new bailout aid to Athens that there would be no extension of repayment deadlines on Greek govt bonds.
http://topics.nytimes.com/top/news/international/countriesandterritories/greece/index.html
almost a year after the bailout, the Greek economy continued to sag under 340 billion euros in debt. where one out of three people is employed in the civil service, which until now has guaranteed jobs for life. The shake-up of Greece's public sector represents one of the biggest overhauls of the country's welfare state in a generation.
Demonstrations claimed their first fatalities on May 5, 2010, with three people reported to have died inside a bank building set ablaze by protesters as workers across Greece went on strike.
Greece’s deficit is raised to 10.5% of gross domestic product in 2010, exceeding the 9.6% target set by the government, while public debt swelled to 142.8 percent of G.D.P.
All these factors appeared to feed an emerging view that it makes little economic sense for IMF and Euro Union to keep lending money to Greece so that the govt can pay back private investors at double-digit interest rates -- especially as Greek citizens suffer the effects of a severe austerity program.
teeth53 ( Date: 21-May-2011 11:41) Posted:
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SGG_SGG ( Date: 21-May-2011 00:05) Posted:
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http://sg.finance.yahoo.com/q/bc?s=%5ESTI& t=1y& l=on& z=l& q=l& c=
teeth53 thot: STI market will be trading volatile and within range till clearer trade signal appear. Since STI peak above 3,300 in mid Nov 2010, it attempted to force a repeat in early Jan 2011 and in early May, end in failure.
(Reuters) - The big money is calling a halt to the surge in stock prices. http://www.reuters.com/article/2011/05/13/us-usa-stocks-weekahead-idUSTRE74C76320110513
Declines in oil and metals prices are being seen by an increasing number of fund managers and strategists as a signal to get out of riskier areas of the equity market. And that means avoiding things like Chinese IPOs and sticking to the boring stuff, like utilities.
http://www.reuters.com/article/2011/05/13/us-markets-stocks-idUSTRE7481EV20110513
Stocks ended a 2nd wk of losses on Friday, reflecting growing worries stocks are on the precipice of a pullback.
Concern about slowed growth worldwide. QE2 coming end of a supportive Federal Reserve policy and the fear of a worsening euro-zone debt crisis are undermining the stock market's ability to maintain an upward direction.
This sentiment was present not just in stocks but also was reflected in a sharp drop in the euro. Stocks and the euro have been trading in a similar pattern for most of the week and particularly on Friday, when a late-morning drop in stocks coincided with a sharp fall in the euro.
The growing concern is that stocks had priced in an overly optimistic economic path, and the recent breakdown in commodities and shift in equities to safer industries like health care suggest a reckoning in coming months.
SGG_SGG ( Date: 21-May-2011 00:05) Posted:
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So much doom and gloom.. how come market still holding instead of falling like there's no tomorrow?
http://www.reuters.com/
http://www.reuters.com/article/2011/05/19/us-poll-qe-idUSTRE74I4S220110519
teeth53 ( Date: 20-May-2011 23:45) Posted:
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Just found something to share with....
Poll: Fed QE2 shift will hurt
Stocks, bonds, gold and the euro are expected to fall in the three months after the end of the Fed's quantitative easing, a Reuters poll of analysts and fund managers found. Full Article
No leh......you should have started planning last june when USD has started falling .....if you are a bit kiasu about your money. Or at least have a watchful eye on US and PRC. PRC is also printing as much money as US. Or you can blame Nixon.
Anyway, should US default, it will be an event lasting no more than 24hours. Just pull back the troops and no more 7M to fix a pancreas health care insurance. Of course no more driving a 6000cc saloon car......heeeee....
Salute ( Date: 17-May-2011 22:33) Posted:
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teeth53 ( Date: 17-May-2011 20:51) Posted:
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Andrew ( Date: 17-May-2011 21:26) Posted:
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America's Debt Crisis We will have another crisis...By Penelope Wang @CNNMoney May 17, 2011: 7:37 AM ET
Robert Rodriguez, CEO of the FPA investment house, says there are plenty of risks out there and that investors have not learned the lessons of the past few years.Oh teeth.....don't worry, they have raised the DC for 74 times alredi. They will do it on the 75th time.
The real problem may happen come 2013.......according to S& P. This is probably the dateline issue by S& P to downgrade US debt to less than the holy AAA rating.
Since independence in 1776, they have not defaulted.
2013 is a problem as Obama will be in the second term........he probably would not care more as it is his last term. Until his re-election 2012......US debt should OK.....
http://money.cnn.com/2011/05/16/news/economy/debt_ceiling_deadline/index.htm
The tap dance begins: Treasury Secretary Geithner said he can move money around to keep U.S. out of default until Aug. 2.
NY(CNNMoney) -- It's official: The U.S. govt hit the debt ceiling on Monday, Treasury Secretary Timothy Geithner told Congress. He would have to suspend investments in federal retirement funds until Aug. 2 in order to create room for the govt to continue borrowing in the debt markets.
He went on to urge Congress once again to raise the country's legal borrowing limit soon " to protect the full faith and credit of the United States and avoid catastrophic economic consequences for citizens."
Congress, meanwhile, is not showing any signs of budging. Many Republicans and some Democrats say they won't raise it unless Congress and President Obama agree to significant spending cuts and other ways to curb debt. (Social Security and Medicare squeezed)
If lawmakers don't get it together by Aug. 2, the United States will no longer be able to pay its bills in full.
S& P said it did not see Washington agreeing on a plan for its dept before the Nov 2012 presidential election.
Defaulting on BOND in unthinkable, it debt now stood at US$14.29 trillion (S$17.6 trillion) a click away which can plunging U.S. into it ever worst finance disaster again.
How many times has the ceiling been raised? Since March 1962, the debt ceiling has been raised 74 times, according to the Congressional Research Service. Ten of those times have occurred since 2001. Expect more of the same over the next decade. Barring major changes to spending and tax policies, " Congress would repeatedly face demands to raise the debt limit," CRS wrote.
What happens if Congress doesn't raise the debt ceiling before Aug. 2? No one knows for sure. But the going assumption is that no good can come of it.
What happens if Congress blows the debt ceiling?
Treasury would not have authority to borrow any more money. And that can be a problem since the government borrows to make up the difference between what it spends and what it takes in. It uses that borrowed money to help fund operations and pay creditors.
Treasury: Debt ceiling could be hit by end of March
Turning up the heat for broad debt fix
Agence France-Presse, Reuters.
teeth53 thot: What can happen here, when our politics is based on U.S. style policy. I can ONLY see two big elephant fighting it out for it own political selfless own agenda.