Global Economy Bursting?

[Randolph Kinney]

Federal Reserve sees slow recovery for years to come

http://www.clickondetroit.com/money...come/-/1719116/19396568/-/lxp94x/-/index.html

The Federal Reserve trimmed its forecast for economic growth in 2013, but said Wednesday that it's a bit more optimistic that the unemployment rate will decline.

The Fed expects the U.S. economy to grow between 2.3 percent and 2.8 percent this year, slightly weaker than its prior estimate.

Meanwhile, the central bank expects the unemployment rate to fall to between 7.3 percent to 7.5 percent by the end of the year. The unemployment rate was 7.7 percent as of February.

The Fed reiterated that it intends to keep rates low until the unemployment rate falls to 6.5 percent or inflation exceeds 2.5 percent a year. Those are rough guidelines, not strict targets. Most Fed officials don't expect those levels to be met until 2015.

The central bank also said it will continue to buy $40 billion in mortgage-backed securities and $45 billion in Treasuries each month for the foreseeable future. The hope is that those purchases will continue to push long-term interest rates even lower.

 

[Terrel L. Shields]

Slow growth does not bother me. I think it was the norm at one time. These huge surges like housing is faking now worries the L out of me. The slow steady move up may be displaced by 2 steps up fast, then 1 step back...staggered maybe 2 steps back...much too much chaos in the market.

 

[Mile High Trout]

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[normando]

The stock market and housing prices have been going up because of artificial low rates. The Fed has no choice but to continue the low rates although I notice mortgage rates have been slowly going up. Too much government interference can bring about dire consequences.

 

[JSmith43]

I believe this is well placed in the global economy bursting section.

http://www.prisonplanet.com/mass-pa...apsing-and-atms-are-running-out-of-money.html

Mass Panic In Cyprus: The Banks Are Collapsing And ATMs Are Running Out Of Money

Trout, if they have a D equivalent party in Cypress, someone will propose banning high capacity money clips in order to help solve the ATM cash drain.:icon_lol:

 

[Mile High Trout]

I never heard of that place until yesterday. Much like Greece, except of course for mythical legend sort of stuff.

To the mattresses is taking on a new meaning.

 

[Randolph Kinney]

Is Spain Preparing For Its Own Deposit "Levy"?

Not paying your faire share

http://www.zerohedge.com/news/2013-03-19/spain-preparing-its-own-deposit-levy

 

[Restrain]

Cyprus now looking at seizing 25% of the larger deposits. Are you starting to worry?

http://worldnews.nbcnews.com/_news/...ercent-from-bank-accounts-of-wealthy#comments

 

[Randolph Kinney]

The tottering banks hold 68 billion euros ($88 billion) in deposits, including 38 billion ($49 billion) in accounts of more than 100,000 euros - enormous sums for an island of 1.1 million people which could never sustain such a big financial system on its own.

This is the same as Iceland, who rather than tax the people to make good on loan losses of the banks, allowed their banks to fail. All depositors ate a prorata share of the loss.

The EU is asking for 5.8 billion in euros from Cyprus to secure a 10 billion euros bail out loan. Reject the loan and let the bank fail. Crisis is over. People lose their jobs and investors become wiser than to believe that no matter what, governments will bail them out.

 

[Terrel L. Shields]

Cyprus now looking at seizing 25% of the larger deposits.

Cyprus's banks are 5x the economy. They bought Greek G Bonds. That's what screwed them. The bulk of money is from elsewhere. The Russian Mafia has no small part of it.
If I were a Cyprus politico or banker. I'd want to hire a body guard and wear a bullet proof vest. I am betting there will be plenty of Cypriots willing to shot them for cash, and even more Russian mafiosos willing to pay them to do it.