World economy talk

**uls** · July 8th, 2011 10:19 PM

Originally Posted by tidus1203

WOW! Obama is going to get slammed again by the Republicans...

JUNE Non-farm payrolls + 18,000 ONLY! That is way way below expectations which was above 120K. Stock futures get slammed heavily... Dow fitires was above 30 before 8:30PM Manila time pag labas ng jobs report down 100 na in a span of 30 seconds hahaha

Unemployment rate up to 9.2% from 9.1% last month...

naging sobra optimistic kasi mga analyst dahil sa ADP

**tidus1203** · July 8th, 2011 10:42 PM

Some people are now seriously thinking of downgrading GDP for the second half if we have another poor jobs number next month. Its simply not enough. The economy has to produce upwards of 200,000 jobs a month consistently and that is just to counter population growth. 250K and above to have a healthy economy, And all we have is 18,000. PATHETIC!

**uls** · July 8th, 2011 10:49 PM

the US economy:

no jobs no income no spending no demand no hiring no jobs no income no spending no demand no hiring no jobs no income no spending no demand no hiring no jobs...

negative feedback loop

**tidus1203** · July 8th, 2011 10:52 PM

Now with such a bad number, would QE3 be now in the cards? Many doubt it... But we might have no choice if the trend persists...

**uls** · July 8th, 2011 11:15 PM

there will be more QE

well, based on reaction in gold

shot straight up

**Monseratto** · July 8th, 2011 11:45 PM

PIIGS!!!

http://www.bbc.co.uk/news/business-14080021

The cost of borrowing for debt-laden Portugal, the Irish Republic and Italy hit new highs on Friday.

Greek debts also sold off, reversing a recent rally on hopes of a new rescue.

Italy has seen a sharp rise in its 10-year cost of borrowing over the last week, rising from 4.85% to 5.3% - suggesting markets now view the country as almost as risky as recession-hit Spain, which must pay 5.65%.

Meanwhile Greece, the Republic of Ireland and particularly Portugal have seen the value of their debts in financial markets plummet further.

Their implied costs of borrowing in markets for three years now stand at 28%, 16.3% and 18.6% respectively.

**uls** · July 9th, 2011 01:06 AM

again, UNICREDIT

**tidus1203** · July 9th, 2011 01:11 AM

With all the problems in Europe in terms of sovereign debt and the problems in the US and the possibility of QE3. Ano kaya mangyayari sa EUR/USD? One has weak fundamentals although rates are rising, while the others is going to be debased again for the third time?

**uls** · July 9th, 2011 01:44 AM

Intesa Sanpaolo

**uls** · July 9th, 2011 10:14 AM

this is what's wrong with the euro project -- the EU has a common currency without a common treasury

member countries can issue debt all they want

the euro project is basically incomplete. the EU needs a common treasury to keep borrowing of member countries in check

Bini Smaghi: Suggests Creation Of Single Euro-Zone Debt Agency

POROS, GREECE -(Dow Jones)- Euro-zone members should consider creating a "supra-national" debt agency as part of efforts to boost fiscal oversight and avoid future debt crises, European Central Bank Executive Board Member Lorenzo Bini Smaghi said Friday.

"The crisis has shown that the euro is an incomplete construct and needs to be completed," Bini Smaghi said in a speech delivered in Poros, Greece.

Bini Smaghi said member states could avoid infringing national debt ceilings by making "public debt issuance a union competence for euro area countries." More specifically, "member states could transfer to a supra-national agency the right to issue their debt, up to levels agreed by the Council in the context of the yearly approval of the stability programmes", he said.

This would in turn create a "genuine debt brake"" which would prevent states from issuing bonds to cover expenditures over the debt limits set every year.