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The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
by dvx (dvx.clt št gmail dotcom) on Wed Jan 2nd, 2013 at 12:36:40 PM EST
Bond Tab for Biggest Economies Seen Falling $220 Billion - Bloomberg

The world's leading economies will have $220 billion less sovereign debt to refinance in 2013, cutting supply after every major government bond market rallied for the first time since the 2008 financial crisis.

The amount of bills, notes and bonds coming due for the Group of Seven nations plus Brazil, Russia, India and China will drop to $7.38 trillion from $7.60 trillion in 2012, according to data compiled by Bloomberg. Japan, the U.K., Germany, France, Italy and Brazil will see a decline, while the U.S., Canada, Russia, India and China will face an increase.

While high debt loads are blamed for curbing global economic growth, bond investors are encouraged by signs that some nations are starting to rein in spending as they extend the average maturity of their obligations. Instead of rising, borrowing costs are falling as supply decreases, inflation remains in check and central banks from the U.S. to Europe cut interest rates to record lows.

"The progress made in fiscal adjustments has been quite significant in a number of countries, perhaps more than the market is realizing," said Mohit Kumar, the London-based head of European interest-rate strategy at Deutsche Bank AG, Germany's biggest bank. "Policy will remain accommodative. I don't expect to see a selloff in core government bonds. There will be enough demand."



The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
by dvx (dvx.clt št gmail dotcom) on Wed Jan 2nd, 2013 at 02:11:13 PM EST
[ Parent ]
Yen, Dollar Weaken as U.S. Budget Deal Damps Demand for Safety - Bloomberg

The yen and dollar weakened against higher-yielding currencies after U.S. lawmakers passed a bill undoing income-tax increases, helping avoid the so-called fiscal cliff and damping demand for refuge assets.

The U.S. currency fell versus most of its major peers even as Republicans vowed to fight President Barack Obama for spending cuts in exchange for raising the debt ceiling. A gauge of volatility dropped the most since June. The Australian and New Zealand dollars rallied, while the yen slid beyond 87 per dollar for the first time since July 2010 after Japanese Prime Minister Shinzo Abe reiterated his goal to weaken the currency.

"The move today is really all about the fiscal cliff," Brian Daingerfield, a currency strategist at Royal Bank of Scotland Group Plc's RBS Securities unit in Stamford, Connecticut, said in a telephone interview. "The reaction seems to be a very classic risk-positive move. It's a bit of a relief rally now that we did happen to get a deal."



The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
by dvx (dvx.clt št gmail dotcom) on Wed Jan 2nd, 2013 at 02:13:30 PM EST
[ Parent ]
The eurozone will muddle through (again) | The A-List

At the last European Council summit of 2012, politicians decided to go ahead with the banking union while ending their reflections on fiscal union they had initiated in June, a time of acute market stress. The message: banking union is needed; the rest is not.

This behaviour confirms that the eurozone has little appetite to think about its own future. Like negligent or impecunious homeowners who only contemplate repairs when the roof threatens to collapse, their overriding motivation is to avoid imminent disaster. As market expectations of break-up have abated, even a discussion on whether integration initiatives would make the currency area more resilient or more efficient seems superfluous.



The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
by dvx (dvx.clt št gmail dotcom) on Wed Jan 2nd, 2013 at 02:11:22 PM EST
[ Parent ]
Bieber Joins Ex-Addicts Fighting Chase in Prepaid Market - Bloomberg

The allure of the fast-growing U.S. market for prepaid debit cards is pitting niche players like pop star Justin Bieber against financial giants including JPMorgan Chase & Co. (JPM) and American Express Co. (AXP)

Both Bieber and JPMorgan want to sell more of the cards, a part of the financial services business that holds as much as $1.7 billion in potential fees for banks seeking new revenue streams as they face growing competition and regulation.

Myriad players, including a firm catering to recovering drug addicts and alcoholics, are stepping up with their own products on the theory that some consumers may pay a slight premium for a card with novel functions -- or Bieber's visage printed on it.

"The market for prepaid debit cards and payroll card products continues to grow at lightning speed, with new products racing to compete with mainstream consumer services like checking accounts," Madeline Aufseeser, senior analyst with the Boston-based Aite Group, said in an e-mail.



The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
by dvx (dvx.clt št gmail dotcom) on Wed Jan 2nd, 2013 at 02:12:29 PM EST
[ Parent ]
Oh boy! Another credit bubble! Nobody ever went broke betting on consumer greed!

Align culture with our nature. Ot else!
by ormondotvos (ormond.otvosnospamgmialcon) on Wed Jan 2nd, 2013 at 07:47:22 PM EST
[ Parent ]
There must be something I don't understand about the word "prepaid".
by afew (afew(a in a circle)eurotrib_dot_com) on Thu Jan 3rd, 2013 at 02:49:44 AM EST
[ Parent ]
Banks, etc., love debit cards; it's free money for them to play around with.

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre
by ATinNM on Thu Jan 3rd, 2013 at 12:24:40 PM EST
[ Parent ]
Banks, etc, above all love credit cards, because it's usurious considerable interest rolling in.
by afew (afew(a in a circle)eurotrib_dot_com) on Thu Jan 3rd, 2013 at 03:37:23 PM EST
[ Parent ]
prepaid debit cards

Is that what used to be called "secured credit cards"?

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS

by Migeru (migeru at eurotrib dot com) on Thu Jan 3rd, 2013 at 03:07:49 PM EST
[ Parent ]
You give them money. Then they let you spend it.

They don't incur a credit card surcharge. Apparently they're also useful for online payments where people don't want to risk using a normal debit card, either to keep transactions hidden or because they're worried the card may be jacked and stolen.

Also, not everyone has a bank account. (Or can get one.)

by ThatBritGuy (thatbritguy (at) googlemail.com) on Thu Jan 3rd, 2013 at 03:14:09 PM EST
[ Parent ]
not everyone has a bank account. (Or can get one.)

That happens to be a big problem for a lot of people...

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS

by Migeru (migeru at eurotrib dot com) on Thu Jan 3rd, 2013 at 03:18:22 PM EST
[ Parent ]
Also, I imagine, for when you want your teenager to be able to shop online but you sure as hell don't want to give them access to a credit card.
by Colman (colman at eurotrib.com) on Thu Jan 3rd, 2013 at 03:25:29 PM EST
[ Parent ]
Can be useful when travelling, too, allowing payments of various kinds like travellers' cheques used to, plus cash withdrawals from ATMs, while limiting the potential damage in case of theft of the card.
by afew (afew(a in a circle)eurotrib_dot_com) on Thu Jan 3rd, 2013 at 03:42:08 PM EST
[ Parent ]
Natural Gas Drops Most in 3 Years on Forecasts of Warmer Weather - Bloomberg
>

Natural gas futures in New York tumbled the most in more than three years on forecasts of moderating temperatures that may reduce demand for the power- plant fuel.

Gas dropped as much as 9 percent after Commodity Weather Group LLC in Bethesda, Maryland, said colder-than-average weather in most of the lower-48 states this week would give way to above-normal temperatures from Jan. 7 through Jan. 11. The low in New York on Jan. 9 may be 38 degrees Fahrenheit (3 Celsius), 11 higher than usual, according to AccuWeather Inc.

"We're going to see some warm weather across the primary gas-consuming regions," said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. "As we get into the new year without signs of sustained cold weather, the fundamental picture is going to force us lower."

Natural gas for February delivery fell 15.8 cents, or 4.7 percent, to $3.193 per million British thermal units at 12:33 p.m. on the New York Mercantile Exchange. The intraday percentage decline was the most since Sept. 11, 2009. The futures have risen 6.8 percent from a year ago. Trading volume was up 16 percent from the 100-day average at 10:15 a.m.



The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
by dvx (dvx.clt št gmail dotcom) on Wed Jan 2nd, 2013 at 02:13:12 PM EST
[ Parent ]
Copper Advances in New York Following U.S. Budget Accord - Bloomberg

Industrial metals rallied, leading commodities higher, as a U.S. budget agreement that averted higher taxes and spending cuts brightened the outlook for demand.

The House approved a measure skirting income-tax increases for most households in the country, the world's second-largest metals consumer. President Barack Obama said he would sign the bill into law. Global equities advanced, and lead, aluminum and nickel led gains on the Standard & Poor's GSCI Spot Index of 24 raw materials. Copper rose the most in more than three months.

"This does help growth prospects, because if the tax increases went into play, it definitely would have taken a huge chunk out of gross domestic product," Bill O'Neill, a partner at Logic Advisors in Upper Saddle River, New Jersey, said in a telephone interview. "We're looking for improved demand this year for industrial metals."

Copper futures for delivery in March increased 2.3 percent to settle at $3.736 a pound at 1:22 p.m. on the Comex in New York, the biggest gain since Sept. 14. China is the largest metals consumer.



The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
by dvx (dvx.clt št gmail dotcom) on Wed Jan 2nd, 2013 at 02:13:40 PM EST
[ Parent ]

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