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The US Debt Crisis Debate

The US Debt Crisis Debate
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First Published: Tue, Aug 09 2011. 03 59 PM IST

Updated: Tue, Aug 09 2011. 03 59 PM IST
Do US and Europe have a plan B?
Mark to Market| Manas Chakravarty
Governments across the world brought out their big guns on Monday to stem the panic in global markets. Finance ministers of the Group of Seven nations pledged to “take all necessary measures to support financial stability and growth”. The European Central Bank (ECB) started to buy Spanish and Italian bonds. In India, too, the finance minister and government advisers tried to soothe market fears. (Click here to read full column)
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Internal risks abound for Indian stocks
Notwithstanding the assurances from the finance minister and other big names of the government about the limited impact of global developments on Indian markets, investors have much to fear. (Click here to read full analysis)
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The big boys come out to reassure markets
By Niranjan Rajadhyaksha
On Monday, after the Indian stock market plunged in early trading, the Indian government sent out its big names to assuage investor fears about the ability of the economy to weather the global storm. They all spoke in one voice. Each statement drove home two basic points: India will not be untouched if conditions deteriorate but the underlying economy is resilient. So the statements were both realistic and reassuring. (Click here to read full article)
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An electronic monitor displays the Dow Jones Industrial Average on the floor of the New York Stock Exchange near the close on Monday. AP photo
A world out of options
Bare Talk | V Anantha Nageswaran
So much happened during last week that it is hard to know where to begin. One of my friends put a comment on his Facebook page that the carnage has commenced and another friend said that the entertainment has just begun. So many would be commenting on the US debt downgrade that Bare Talk would like to steer clear of it after noting that criticisms of the credit rating agency for the downgrade—after having contributed to the global crisis actually with their rating (non-) actions up to 2008—actually miss the point. (Click here to read full column)
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Is world economy nearing another Lehman moment?
Is the world economy stumbling towards another Lehman moment?
The spectacular collapse of the Wall Street investment bank in September 2008 had led to the deepest economic contraction since the 1930s. The US and European economies were pulled back from the brink after central banks flooded them with free money, tax revenues were used to bail out financial institutions and governments supported aggregate demand by stepping up public spending. (Click here to full story)
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Graphic by Uttam Sharma / Mint
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No place to hide for investors
Mark To Market | Manas Chakravarty
The global economic situation is brimming with irony. The ultimate safe haven, where investors flee whenever there’s a turmoil in the global markets, is no longer so safe. The risk-free rate is no longer riskless. It has been downgraded by a rating agency that had no problem with issuing AAA ratings for dodgy mortgages that led to the financial crisis. (Click here to read full column)
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IT stocks at risk? What data do investors rely on?
Mark To Market | Mobis Philipose
IT stocks fell the most last Friday, dropping by 4%, almost double the rate at which the broader markets fell. This comes on the back of a marginal underperformance during the results season. As a result, the CNX IT index on the National Stock Exchange has now dropped by 11% since the results season began last month, compared with a 7% drop in the benchmark Nifty. (Click here to read full column)
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Does the scramble for the yellow metal signal a flight to safety
Mark To Market | Vatsala Kamat
Gold prices hit a record $1,663.8 an ounce (around Rs. 2,500 per gram) on Friday. The price has doubled since 2008 when a financial meltdown threatened the globe. And since January, it has appreciated 17.6%.
Yet investors the world over seem to be pouring money into the yellow metal, with frenzied buying by central banks of various countries, fund houses and even retail investors and consumers who have jumped on the bandwagon. (Click here to read full column)
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Editorial | Stumbling to a new crisis
A series of unusual events occurred late last week. On Thursday, the European Central Bank (ECB) resumed its emergency debt purchase programme and bought Irish and Portuguese securities. This it did after a pause of 18 weeks. Soon after, the world’s equity markets tumbled, wiping off $2.5 trillion of investors money. Just after that massive slide, the credit rating agency Standard and Poor’s (S&P) cut the rating of the US from AAA to AA+, the first time it has done so since 1941.(Click here to read full edit)
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Can India ride through the global market carnage?
By Niranjan Rajadhyaksha
Indian equity markets tanked in the first hour of trade on Friday, part of a steep decline in markets around the world after renewed fears that the global economy is unraveling and headed towards a double-dip recession. (Click here to read full article)
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Back at the Brink
By Manas Chakravarty
It wasn’t supposed to come to this. After the financial crisis broke, policy makers in the advanced economies started on a programme of fiscal and monetary stimulus that was supposed not only to pull their economies back from the abyss, but also to ensure a steady of slow recovery. Well, four years after the crisis started, we’re back at the brink. (Click here to read full article)
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First Published: Tue, Aug 09 2011. 03 59 PM IST