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ECONOMICS – FINANCE – WORLD NEWS – GREEK DEBT

“Biopolar enthusiasm” and the fiscal cliff

The Daily News Brief is going on Christmas holiday for a while and will be back in the new year.

The general consensus says we are making progress to make an outline to make a plan to move away from the fiscal cliff. Today even more so than yesterday. After Boehner’s proposal yesterday (look he has a chart), Obama came back suggesting tax increases for those with $400,000+ annual income, but apparently that is not his last offer. Then why even bother analyzing it? Reuters says, the mad velocity by which the negotiations are taking shape, “put[s] a deal realistically within reach.” read article

ZeroHedge sums it up:

By this point it has become clear to everyone that all fact-based news can be safely ignored […] it is clear that following yesterday’s detailed disclosure, the market is convinced, that a deal is virtually assured. This is a start contrast to 48 hours ago, when it thought the opposite. […] the latest bubble of bipolar enthusiasm which has now shifted to euphoric for the time being.

Also in the US. the Massachusetts Security Division of the SEC is kicking of the year in review part of 2012, reminding us just how much was blaming and blogging [about the blaming] was going on around the Facebook IPO, the company’s valuation and the decline of its stocks. Seven months later, almost to the date, Morgan Stanley was fined $5m for having failed to supervise its staff during the time of the IPO, i.e. for trying to influence research analysts right before the offering. Morgan Stanley paid up without denying or admitting to anything. Citigroup has already been fined $2m for “improper disclosures” and both Goldman Sachs and J.P. Morgan have been subpoenaedread article

J.P. Morgan is also being sued by the US Credit Union for Bear Stearn’s creation of mortgages worth $3.6bn that were distributed to clients under false information and later blew up in their faces. J.P. Morgan acquired Bear Stearns in 2008. read article

Meanwhile, Europe is entirely out of office now – the biggest news are that Germany‘s Bundesbank is expected negative GDP growth in Q4, while the European Commission gave the okay for the €3.9bn bailout of Monte dei Paschi di Siena, Italy’s third largest bank. Monti’s candidacy for the 2013 Italian election circus will stay up for discussion until Friday morning, so most Italian news will continue to be dominated by Berlusconi’s upcoming wedding. Brussels also filed a report regarding Spain‘s public debt, which is likely to keep rising if the country fails to reform its pensions system. According to the report, Spanish pensions will exceed the average EU spend until 2060. The other nation at risk, in part due to its pension spending, appears to be Cyprus which received aid from Brussels in June. read article

So much from me, happy holidays!

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2 Responses

  1. princess1960 says:

    first is to early to leave me .
    (blog)
    christmas we have everyday if we wanted (but because the market needed a little move) we have christmas time now ..
    i decide to make comment just one to day and every day one when you come back i readed ..OR i need other blog never know what go to happening untill end of 12.
    SO again with” fiscal cliff ”
    TAX –system be come very big and i think some economist have to see more effective in other side
    ofcourse we neede tax (for me is unfair) but this tax have to be logic (because if not logic after have other consecuaces..). 16-17% is the best for every country like USA to have tax
    CUT SPENDING is NESECCERY …
    and REFINANCIAR BANK’S IS NESECCERY for starting one new cycle econmice ..with new ruls with desipline and transparence
    everyday BIG bank’s and Company have scandal economic loundry money (this mean the people who working there was (is) dirty ..moral political social”
    they have to go out ..
    IN other side ALL this scandale be come in scene (so this mean transparence ) be come open

    next time other comment
    we will see who winn
    you have my very very big L and wishes what you need god and me help you
    thank you
    enjoy
    ah i like ZERO H…he is very honest (fact)

  2. […] later, Monte Paschi received a €1.9bn bailout from the Italian government, following by the December 2012 EU approval of a total €3.9bn bailout. It may raise a question of fairness, if not at least of proportion. While Monte Paschi is […]

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