May 30, 2012

Rise of UnderGround Economy and Pay Freezes Picture of New Normal in Europe

The New Normal which marked low to negative economic growth,high unemployment in developed countries of the West began after the Lehman Crash in 2008. It has […]
July 6, 2011

Greece Referendum on European Bailout – 5 Points you Want to Know

Greece Referendum is set to become the hottest media topic related to the European Debt Crisis in the coming months.In a totally surprising move Greek Prime Minister George Papandreou called a referendum and a parliamentary confidence vote on 31st October just a week after the European leaders had agreed on a package to .Papandreou’s personal and government popularity have plunged amid fresh austerity measures that sparked a wave of social unrest.The PM is calling this vote probably to bolster his government as it loses support of the masses
July 5, 2011

Greek Debt Deal – Bondholders take 50% Loss- Who Wins and Loses

According to reports coming from Europe where the summit of major European leaders took place to resolve the growing debt crisis,a deal has been reached on Greek debt.The Euro 350 billion debt which dwarfs the size of the negatively growing Greek economy has been a major source of instability in the last 2 years.The private holders of the Greek government bonds have agreed to take a 50% writeoff on their holdings.This means that if they hold Euro 100 of bonds they have become Euro 50 now as the rest has been written off as bad debt.Not that it was not apparent as Greek CDS and Greek bonds were touching all times lows in the secondary market.In fact the only buyers of Greece bonds were the European Central Bank and the Greek banks.The capital markets had been going up in the last month in the hope of some sort of resolution.The deal does not look like a win win as there will be some big losers in this deal (though they were already losing for some time).Nicolas Sarkozy announced the deal which would be voluntary in nature so that the CDS would not be invoked.Here are the winners and losers from this deal
February 10, 2011

Why is China using Cyber Warfare as an Instrument of Peacetime State Policy ?

China has repeatedly cropped up in the news for cyberattacks on various governments as well as large multinational companies.While the Chinese government has denied responsibility for these cyberattacks,the evidence continues to grow as large reputed organization have blamed hacking on Chinese origin IP addresses.Note South Korea,USA and India have blamed China for cyberattacks on government computers.Growing cyberwarfare from China has made India start a cyberattack centre of its own reflecting the serious growing nature of these attacks.The recent Stuxnet virus attack on nuclear plants of Iran has been also been blamed on a Chinese attack on India gone wrong.Note cyberattacks are not considered of very serious nature in today's geopolitics and has deniability.This has probably made China to continue with cyberwarfare on countries considered hostile to its interests.
September 14, 2010

Greece eases Bureaucratic Red Tape for Green Energy to spur its Tottering Economy

Greece has a totally confused Green Policy just likes it General Economic Policy.The Parliament had taken a go at simplifying the bureaucratic mess by eliminating permits and approvals for small plants below 500 KW.However 6 months have passed without much progress.Greece needs to do a comprehensive overhaul of the Green Subsidies.The Solar and Wind Costs have fallen greatly in the interim so it needs to reduce the FITs to normalize the returns.Otherwise it might repeat a Spanish/Czech Renewable Energy Boom and Bust.
July 19, 2010

European Crisis is alive and kicking – IMF Rejects Hungary Bailout while Moody downgrades Ireland

The recent recovery in Euro from 1.2 to 1.3 USD and the strength of the stock markets would make you think that the Greek Contagion is […]
June 21, 2010

Language of Money makes Australia roll out the Red Carpet for Chinese investment despite Rio Tinto arrests

Language of Money papers over Rio Tinto tensions Australia has rolled out the proverbial red carpet for visiting Chinese leadership signing billion dollar agreements on mutual […]
June 15, 2010

After Africa China finds another distressed country in desperate need of Chinese capital- "Greece"

China with its $2 Trillion Foreign Exchange Reserves is on the constant lookout for cheap assets around the world.With its massive horde of Dollars and Euros […]
June 8, 2010

Is Bulgaria guilty of forging Public Accounts like Greece and Hungary?

The Greek Contagion was precipitated by news that Greece has fudged public account figures to gain admittance to the European Union taking the help of Goldman […]
June 4, 2010

Hungary takes the role of Forger of Accounts from Greece

Eastern Europe moves to the spotlight Seems these days Friday equals to Red for the “Risky Assets”.Eastern Europe had moved to the periphery of world’s attention […]
May 29, 2010

PIGS face a Catch-22 situation – Spain gets its AAA Sovereign Rating cut by Fitch

The Greek Contagion throws up bad news everyday.Not a day passes by it seems when the Markets and the Euro are rocked from the PIIGS.The Spanish […]
May 25, 2010

Greek Contagion – Swiss Franc appreciating despite "currency manipulation" by Swiss Central Bank

The Greek Contagion has led to indirect negative effects in unlikely places all over the world with the Swiss Central Bank being one of the casualties.The […]
May 20, 2010

A Chronology of the Greek Contagion as Risky assets take another Big Fall

A Chronology of the Greek Contagion 1) Markets get spooked by the Greek crisis ; IMF/EU  Bailout  deemed insufficient 2) European markets and risky assets take […]
May 9, 2010

Greek Contagion – Hong Kong's IPO market shudders to a halt

As I was writing in my earlier posts , one of the biggest causalities of The Greek crisis has  been the  world IPO market.Not only have […]
May 9, 2010

Greek Contagion – 15% Oil Correction has Kuwait asking OPEC to support Prices

The last week’s sharp decline in commodities and stock markets has a lot of people making half baked statements while others are panicking . We had […]
May 9, 2010

Greek Contagion – India's Chief Economic Advisor thinks that India might "Benefit" as a "Safe Haven" if Crisis is "Contained"

India’s chief economic advisor thinks that India could benefit from increased capital flows if the Greek crisis is contained at the present level. How he thinks […]
May 8, 2010

German Court Refuses to Block Aid to Greece ;Top Economists Complaint Rejected

Good news for the Bailout Cheerleading Gang as the top German Court refused to block the emergency aid to Greece which had been approved by the […]
May 8, 2010

Greek Contagion – Sarkozy and Merkel indulge in favorite pastime of blaming the "Speculators" ; EU to set up Stabilization Fund

Last week the markets were hammered due to the spreading of the Greek contagion with Euro falling , sovereign debt CDS of the PIIGS increasing daily […]