Sunday, May 23, 2010

International Headlines;“Hedge funds bet big on the falling euro”;Solution for the European debt crisis

· “Hedge funds bet big on the falling euro” – several prominent funds, inc. many who profited from the implosion of the US sub-prime market, are positioning themselves for a further decline in the euro; traders and brokers told the Sunday Telegraph that HFs are using a variety of instruments to bet on further euro declines; “shorting the euro is the biggest best in town”   London Telegraph 

· Solution for the European debt crisis – detailed in the London Telegraph: 1) a restructuring of certain country’s debts (Greece, Portugal, Ireland); 2) bank stress tests w/capital injection options from the ECB (like what occurred in the US); 3) the nations whose debt wasn’t restructured will see their debt guaranteed by the ECB; 4) the G20 provides support for FX markets. link  

· European bank CDS costs nearing Lehman-era levelsLondon Telegraph 

· Spain bails out one of its regional banks - Bank of Spain Governor Miguel Angel Fernandez Ordonez said early Saturday that steps had been taken to guarantee Cajasur, a local savings bank, could continue operating as normal.  It is only the second regional savings bank bailed out by public money after the Bank of Spain intervened in March 2009 to take control of Caja Castilla-La Mancha.

· South Korea said it would take its case against North Korea over the sinking of a SK ship to the UN Security Council; South Korea’s president will deliver a speech about the incident on Monday – NYT 

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