Greece’s gross domestic product (GDP) in 2010 was only $304.87 billion. The proposed Greek “bailout” by the European Union includes about $180 billion in cash and a 50% cut in Greece’s debt. This is equal to more than one year’s GDP for Greece. It’s a huge bailout. It’s…
The country of Greece has produced some astounding mathematicians, scientists, philosophers, and other intellectuals in its long history, but managing finances does not appear to be a strong point for this country. After blowing through over $130 million in emergency funding, the country continues to struggle to pay…
Traders are concerned about the nuclear fallout in Japan, along with the conflict in Libya and North Africa; but, for whatever reason, the debt and growth issues in Europe appear to have been pushed to the backburner. In my view, this is dangerous. While there are issues with…
We are seeing some hesitation in the upward movement of stocks despite what has been a fairly decent earnings season early on. The problem I see is the influx of uncertainties in Europe that is making traders think hard about going long. While there are problems with jobs…
The majority of the news is on Ireland and the fear that the debt issues there could spread throughout Europe and further dampen growth there. But I have talked enough about Europe and will swing my focus to China—my favorite growth region for growth investors looking to increase…
Are we seeing signs of the perfect storm arising in the stock markets? Not only do we have growth issues in the United States, but Europe and Asia continue to pose issues. I’m not saying the good times are over, but, for now, the market risk is higher.…
Markets rallied last Thursday on the news of the potential remedy to the debt situation in Ireland that is expected to be announced sometime this week. While this will help remove some unwanted uncertainty from the market, I feel the remedy will merely mask a much more significant…
The economic situation is improving in the United States, although there continue to be some growth issues in big-ticket items and housing. The Consumer Confidence reading fell in July for the second straight month. June Durable Goods Orders fell one percent with economists expecting a one-percent increase. This…
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By George Leong, B.Comm — The Leong Side of the Market column It will take some work to drive stocks higher to sustainable gains. We are seeing some hesitation in the upward movement of stocks despite what has been a fairly decent earnings season so far. The problem…
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By Inya Ivkovic, MA — The Financial World According to Inya column Last week, Greece's civil servants staged another day of strikes and protests against the government's desperate moves to reduce the debt load by imposing severe cuts on both headcount and wages. At the same time, Eurostat,…
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By Inya Ivkovic, MA — The Financial World According to Inya columnThese days, it seems that all the International Monetary Fund (IMF) is called upon to do is act as a lender of last resort to countries that have ripped their finances to shreds. The only thing that…
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By Inya Ivkovic, MA — The Financial World According to Inya columnApparently, a lot! Greece seems to be sinking deeper and deeper, signaling that an emergency bailout may be needed, while Europe's currency of choice, the euro, is going through an unparalleled crisis in its young life. Who…
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— by Inya Ivkovic, MA For the most part, during the recent economic downturn, central bankers, economists, analysts and even politicians debated and worried about deflation. What kept most of them up at night, myself included, was an Economics 101 teaching that falling prices prevent the economy from…
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— by George Leong, B. Comm. How things can change in a few days. Just a week ago, the stock markets were flying higher, with four straight up weeks. The winning streak came to an end last Friday and the losses continued on Monday, with the DOW recording…
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— by Inya Ivkovic, MA Continuing my overview of macroeconomic factors around the globe, the next two regions of discussion are the European Union (EU) and Japan. Economic growth in Europe came to a standstill in late 2008, resulting in the region's first recession since the Economic and…
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— by Inya Ivkovic, MA The first 100 or so days into Barack Obama's presidency, and already it feels as if the worst of the financial and credit crisis is behind us. The culture of innovation and amazing resilience of free enterprise appear to have resurrected hope in…
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— by George Leong, B. Comm. President Obama is in London at the G20 meetings on the condition of the global economic crisis. These meetings will be significant, as there must continue to be a global concerted effort to stabilize the economies and generate economic recovery. The U.S.…
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A key variable in the success of the economy will be the labor market going forward. As business slows, companies will cut production and send workers home. This will translate into lost wages and a decline in consumer spending that will ultimately impact the economy negatively. In the…
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In my last editorial, I wrote about the potential for a free trade market between Canada and the European Union. I got quite excited about the possibility, both for personal reasons and because I believe there is an excellent economic reasoning behind the deal. Open and free economies…
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I've been looking forward to this one -- that, hopefully, Canada might formulate at least the basic framework for free trade agreements with the European Union. It makes perfect economic sense. The EU is Canada's second-largest trade partner after the U.S. Last year, almost CDN$80 billion worth of…
