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Thursday, 26-Jan-2012 22:01 Email | Share | Bookmark
Western Europe, an upgraded version of the debt spread panic tak

Debt panic spread in Western Europe rising fiscal deficit
the past few days by credit default swaps (CDS) market is out of the panic in Western Europe of sovereign bonds, so that some pessimistic people vaguely see the subprime crisis staged sequel. A similar story, similar to panic, but starred for the sovereign state to replace private enterprise mm sang the leading role.
analysts pointed out that the recent focus in the Western European countries such as Greece's sovereign debt crisis broke out, on the one hand highlights the countries themselves long-standing financial problems, but also for more advanced further deterioration of the financial problems, such as the IMF or the EU will bail them out, the impact of the incident may be limited to Europe, bringing the global systemic risk is limited.
However,UGG ???????, without a proper solution as soon as possible, so that investors regain confidence, market stability and world economic recovery may be a huge shock.
shift from private to government
so much these days is that Greece and other countries face debt crisis, as it is a crisis of confidence because investors in the debt of these countries the ability to doubt, for these countries is reflected in government bond default credit default swap prices continued to soar.
Thursday, Western Europe, the CDS hit a record high state debt, Portugal, Greece , the Spanish government bonds and other countries also continue to rise CDS.
Some market participants carefully noted that the current field of government bonds staged a Greece may be the next down, have chosen to sell, but difficult to find a buyer, so they in the CDS market to buy .
default risk soared as the European countries, European countries this week to protect the CDS cost of sovereign default than corporate bonds have been the first time. Bloomberg data show, the Western European sovereign CDS index this week for the first time beyond the North American investment-grade corporate bonds CDS.
analyst at Merrill Lynch released a report yesterday that the Treasury CDS CDS and corporate bonds are different in nature,UGG ????????? like the simple style, than these two used to do, is like using The bank also believes that the latest development indicates that credit risk has been transferred from the private sector to the sovereign state.
; O'Neill, chief global economist at Goldman Sachs, told Shanghai Securities News yesterday told reporters. %, is already more than four times the EU limit Spain's 2010 budget deficit to GDP is expected to reach 9.8%, the proportion of the country last year's deficit as high as 9.5%. Portuguese government said last year, the country's budget deficit accounted for rose to 9.3%, far more than the government expected 8%.
systemic risk appears limited
In fact, thanks to low interest rates, Greece, Spain,UGG ?????????? ????????????, the country's economic growth has been highest in the euro area in the forefront, but this financial crisis has ruthlessly exposed the financial constraints of these countries have long been missing and structural defects.
Shanghai Academy of Social Sciences Institute of World Economy, deputy director Xu Qi told reporters, Greece, Spain and some other The foundation itself is relatively poor country,Canada Goose Menn Parka in fact, to join the EU, spending and other areas in the EU in line with other developed members, but this a few years after the financial crisis, these countries will inevitably shrink in the financial problem has become more prominent. Greece has been hope the EU can helping hand extended, but did not receive a positive response, because other EU members themselves present situation is not very good.
some developed EU members have been very specifically for these deficit, high unemployment, financial problems are more prominent.
However, the majority of market participants and experts agree that the crisis in Greece and other countries will continue to deteriorate, set off another global crisis is unlikely.
br> New York hedge fund manager Jim Shi told reporters on the Shanghai Securities News, Wall Street and not to the debt problems of Greece and other countries too seriously. The systemic risk posed by a very small. Bank of Greece,www.canadas-gooses.com, Portugal,moncler outlet, Spain and other countries have a lot of investment and business, if you upgrade the debt crisis is bound to affect these investments. Thursday, as the main holders of government bonds, the European bank stocks in general tumbled.
European Central Bank President Jean-Claude Trichet on Thursday is deliberately dispel investors' concerns about the debt crisis in Europe in that day's press conference, Trichet stressed that although there are some members of the financial crisis, but the entire euro zone budget deficit to GDP ratio of the average 6%, well below the U.S. and Japan up to double-digit deficit.
brought to China or indirect effects
say the least, if the European powers really sit back, IMF and other international institutions will shot. IMF's Strauss-Kahn said on Thursday that the organization is ready to help Greece, but he also said that other members of the euro area would like to solve this problem within the understanding that, because once the IMF hand, may lead to the euro area in global investment people's image greatly reduced.
the case of China, experts said,Canada Goose Jakker, the recent debt crisis from Europe are not the direct impact may be felt some indirect impact, depending on the situation of the next stage of development.
Xu Qi said that if Greece, Spain, expansion of the debt crisis, the EU may affect the normal recovery, and thus more or less affect China's exports to Europe, but China's exports to Europe are mainly concentrated in some of the developed country, Greece, Spain, Portugal and other export destination markets are not large in terms of investment, China in Europe, especially Greece and other countries very little investment, so less likely to suffer direct losses.
reported U.S. Treasury and the Fed has been closely watching the dynamics of Greece, so far, the United States also believes that this is a regional issue, I believe European governments free to deal with.
However, if market volatility continues, policy makers may will be more vigilant. can be expected in this weekend's Group of Seven meeting of finance ministers and central bankers around the debt crisis in Greece and other European countries, the topic is sure to be focused on.
Insiders pointed out that Greece and other countries exposed to out of the question, but also reflects a dilemma faced by developed countries in general, namely, how to deal with the economic recovery, fiscal stimulus out of the relationship.
IMF had warned countries not to withdraw the emergency stimulus measures too quickly, or it may bring secondary recession risk,UGG ????????, which is consistent with the wishes of many rulers, but on the other hand, if the delay in closing hand control expenditure, until the crisis come to take measures, I am afraid that a time is difficult to work.

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