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Tag Archives: Eurozone

Is the Eurozone Heading Towards Another Recession?

Last week bore news of another upcoming recession in the Eurozone, according to the speculations of numerous economists. However, some believe the recession has never actually ended.

Peter Rupert and Thomas F. Cooley, two U.S. economists, explain that Europe’s economies have remained low and struggling to regain momentum after the initial crisis in 2008. Germany is the one exception. They add that the United States, on the other hand, reestablished all their lost ground by 2011.

In other words, Europe may be heading towards the far end of a lost decade. The wasted potential in the region has impacted investments in education, slow or stalled research and failed businesses and careers.

Rupert said:

“There are larger implications that people don’t think about. There is a huge decline in human capital.”

The beginning and end of a recession is hard to identify. Definitions vary greatly, but all agree that some significant factors include unemployment, industrial production and investment.

Officially, the European recession ended in the third quarter of 2009 according to the Euro Area Business Cycle Dating Committee. They have yet to discuss today’s situations, but all agree that it is rough.

High Frequency Economics’ Carl Weinberg said:

“This is more than just a regular business cycle. I can’t think of a time in the postwar period in any major industrial countries where have had a downturn resume before the previous cycle was over.”

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

2012 To See Little Growth, Poll Shows

A recent poll of hundreds of economists has revealed that the global economy will continue to struggle throughout 2012, but will begin to see significant growth by 2013. Though many expected 2012 to be a rough year, even experts believed the United States’ resilience would keep the economy above water. Numerous successful emerging markets contributed… Continue Reading

Jeremy Stretch on the Euro

The debt crisis in Europe has yet to be truly resolved, and the euro has been bobbing up and down in value as the situation changes. This past week, it deterred investors due to an upcoming week of risks such as an additional finance minister summit. Jeremy Stretch of CIBC World Markets said: “If the… Continue Reading

UniCredit and the Eurozone Breakdown

As months go on and the eurozone sovereign debt crisis increases, weakening economies like Germany paves the way for a possible breaking of the EU.  True, Sarkozy and Merkel danced around the idea of a stronger fiscal union, but that is for consumption not reality.  The great idea, the eurozone is on its way out.… Continue Reading

Meeting of Euro Big Banks

The big wigs met yesterday in Paris with the goal of making peace with Euro authorities vis-à-vis how investors will participate in the Greek sovereign debt reconstruction.   According to an article in The Financial Times, this is also meant to ease Greek’s burden as well as make the “banks’ original plan that would have seen… Continue Reading

Greece’s Debt Crisis

Greece Causes Problems for Eurozone In a recent article, it was reported that Didier Reynders, Belgian’s Finance Minister, feels that Greece’s debt crisis is so bad that it could actually spread “as far as France.” He said that should Greece be the “first country to default,” people will start looking towards places like “Ireland, Portugal,… Continue Reading

Global Downturns

US Stock Investors: Increased Risks Given what has been going on in economic terms globally, America is now stepping up its demands. Saying that there are so many more risks these days than there were just “a few months ago,” stock investors from the US are beginning to increase their demands. As well, things could… Continue Reading

New Hedge Fund Developments

It looks like the world is about to get another hedge fund. World renowned foreign exchange strategist Stephen Jen has left Morgan Stanley and is heading out to launch his very own hedge fund, SLI Macro Partners which has already set up a temporary office in the very exclusive Mayfair, London and will also be… Continue Reading