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shared by bparksj28 on 05 Dec 12 - No Cached

That compares with a 23% outflow from Indonesia, the country hardest hit by capital flight during the Asian crisis in 1997 and 1998
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Foreigners and Spaniards alike have contributed to the outflow. During the second quarter of this year, sales of Spanish securities by foreigners equaled 19.4% of the Spanish economy, while foreigners’ withdrawals from Spanish banks accounted for another 15.3%.
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apital flight seems to be accelerating. Spanish bank deposits by companies and households shrank €74.2 billion (93.4 billion dollars) during July, according to the European Central Bank.
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Even more worrisome
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Spain’s banking system “is running out of liquidity and running out of collateral,” since collateral has to be pledged to the ECB when it provides funds.
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This means Spanish banks are lending less, a drag on economic growt
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Bank of Spain figures show that net capital outflows—including bank withdrawals and sell-offs of Spanish stocks and bonds—equaled more than 50% of the country’s economic output over the year ended July 31
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shared by bparksj28 on 16 Nov 12 - No Cached

The Federal Reserve, preparing to embark on its latest round of so-called stress tests, released the details Friday of three economic scenarios it will use to judge the health of the U.S.'s largest lenders.
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5% decline in gross domestic product, an unemployment rate of 12% and a volatile stock market which loses half its value.
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The stress tests are mandated by Dodd-Frank, the financial reform law written in the wake of the 2008 financial crisis that brought down Bear Stearns and Lehman Brothers.
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Last year, the Fed's tests showed a majority of the nation's largest banks would be able to weather another deep recession.
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Ally Financial, Citigroup (C, Fortune 500) and SunTrust (STI, Fortune 500) -- would likely need new capital from either investors or the government in the Fed's adverse economic scenario
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shared by bparksj28 on 04 Mar 13 - No Cached

shared by bparksj28 on 19 Mar 13 - No Cached

shared by bparksj28 on 28 Nov 12 - No Cached

Charles Evans, president of the Chicago Fed, wants the central bank to keep the federal funds rate near zero until unemployment falls to 6.5% -- a jobless rate not seen since 2008.
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in January he will rotate into a voting role on the Fed's policymaking committee. For about a year, he has been urging his colleagues to publish clear economic targets that would guide the central bank's policies.
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. He wants to see the unemployment rate fall to at least 6.5% and inflation not exceed 2.5% a year
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hope behind the policy is that numerical targets will lift some of the mystery surrounding the Fed's decisions.
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As economic data is released, the public can base their expectations for Fed policy on a clearer picture of the central bank's goals.
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"I support this approach because it would enable the public to immediately adjust its expectations concerning the timing of liftoff in response to new information affecting the economic outloo
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The Fed has kept interest rates near zero since late 2008 in an effort to stimulate the economy. While the unemployment rate has since fallen slightly to 7.9%, the Fed is still unsatisfied with that level and has been pursuing additional alternative policies to boost the economy further.
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The Fed's policymaking committee is next scheduled to meet Dec. 11-12.
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