Friday Market Update 1/27/2012

ANNUAL KAHUNA MEETING It’s time for Davos, the world economic forum, again. But this year is different. Gone is the hubris of the elite and in its place is fear. George Soros said, “At times like these, survival is the most important thing.” According to an article in Reuters, he feels that the world faces one of the most dangerous times in modern history and predicts riots on the streets that will lead to dramatically curtailed civil liberties. The global … Read More »

Financial Crisis And An Accident Prone Economy

The financial crisis in Europe has commenced a “perilous new phase” that could handicap global economic growth even with a best case scenario, so said a report from the International Monetary Fund on Tuesday. To make matters worse, the threat is growing that Europe’s difficulties could become even less stable, leading to a failure in lending as well as investment and production that would cause a severe recession in Europe, as opposed to the mild recession that the IMF is … Read More »

European Central Bank And The European Union

The ECB (European Central Bank) stands ready with unlimited cash for banks as lenders try to reposition more than $765 billion of debt that matures this year, just as institutional buyers remain disinclined to purchase debt from all but the most secure banks. “February’s second three-year Long Term Refinancing Operation looks set to be extremely large,” Credit Suisse Group AG analysts led by William Porter reported to clients. “The last LTRO has removed any stigma, making managements who do not exploit … Read More »