Source: CNA – Stress tests no guarantee of banks’ survival
Notable excerpts:
Just because a European bank passes the upcoming stress tests by European regulators does not mean it has the necessary mettle to continue to survive, the German banking federation said on Monday.
Source: Bloomberg – First China Default Seen as Record $427 Billion Debt Due
Notable excerpts:
Chinese company debt twice the size of Ireland’s economy will come due in 2014, spurring concern the nation is on the cusp of its first corporate bond default.
Source: CNBC – Bond Losses of $1 Trillion if Yields Spike, BIS Says
Notable excerpts:
Bondholders in the United States alone would lose more than $1 trillion if yields leap, showing how urgent it is for governments to put their finances in order, the Bank for International Settlements said on Sunday.
Source: Xinhua News – U.S. fiscal failure warrants a de-Americanized world
Notable excerpts:
As U.S. politicians of both political parties are still shuffling back and forth between the White House and the Capitol Hill without striking a viable deal to bring normality to the body politic they brag about, it is perhaps a good time for the befuddled world to start considering building a de-Americanized world.
Source: BullionStar – The last time the United States declared bankruptcy
For the past week, the news making the headlines in the world economy is whether the United States will default as a result of the debt ceiling not being raised. I surveyed a number of my friends on this topic to see how many think that the United States will default on debt obligations this month. All of them believed that the debt ceiling will be raised and a default will be avoided.
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