Investing and Global Finance News

Tag Archives: Debt Crisis

Christine Lagarde Calls for Immediate Action

Christine Lagarde, head of the International Monetary Fund, recently called for additional action as Europe continues to grapple with debt and the U.S. struggles with an impending fiscal crisis. Lagarde claimed that the world economy is faring worse than even the more pessimistic expectations.

Though the European Central Bank and European governments have taken several steps to ensure security, Lagarde stated that “more needs to happen, and faster.”

Just recently the IMF lowered its global growth predictions to 3.3%, down from an already low 3.5%. It has since warned that reality may fall short even of this low forecast if the United States and Europe are unable to improve on the situation.

“We are not expecting a very, very strong recovery. The recovery continues, but it continues more slowly than we had expected earlier this year,” Lagarde said. The slowdown is having a “ripple effect on emerging markets, and in particular in Asia.”

Political tensions have also impacted economies throughout Asia, and Lagarde stressed the importance of a quick resolution for the good of global growth.

“We hope that differences, however longstanding, can be resolved harmoniously and expeditiously so that from an economic point of view cooperation can continue… since we are all very closely interconnected,” she said.

German Economy Holds Steady As Euro Zone Continues to Crumble

Despite Germany’s stalwart growth, the euro zone’s economy stuttered in the second quarter. According to, the region “contracted by 0.2% on the quarter.” Meanwhile, “Germany eked out growth of 0.3%, marginally beating forecasts, but its forward-looking ZEW sentiment index slid for a fourth month running, undercutting even the lowest estimate in a Reuters poll.”… Continue Reading

German Economy Falters At Long Last

Throughout the economic concerns and debt crises, Germany has always managed to keep its head above water, and sometimes thrive, despite the area’s hardships. Not anymore. In 2011, German exports increased dramatically while employment levels improved, wages rose and real estate climbed to altogether new heights. Near-balance of the federal budget and other positive signs… Continue Reading

Stock Markets Spiral Downward as Spain’s Crisis Worsens

Spain’s gaping economic crisis has pushed stock markets down this week triggering a fresh wave of doubt concerning the Eurozone’s progress and recovery. The Washington Post explains that Spain’s unemployment rate, currently higher than that of the U.S. during the Great Depression, has contributed to the economy’s downfall. “Spain announced that its economy shrank by… Continue Reading

Oil Prices and Economic Outlook

Investor concern regarding the ongoing debt crisis and slow economic growth is likely to increase now that oil prices have reached $103 per barrel in Asia. June delivery’s benchmark oil had fallen 13 cents to $102.98 a barrel on the New York Mercantile Exchange, and the contract later fell 77 cents to $103.11. Meanwhile, Brent… Continue Reading

David Stockman on Today’s U.S. Economy

In a recent Q&A, David Stockman implied that the only way to safeguard assets today is with cash or gold bars. From his perspective, the efforts made by the Federal Reserve do little but push stock and bond markets closer to the brink. And Stockman’s opinion is not one to take lightly. The man is… Continue Reading