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Feb 9, 2010

Gata Dispatches: Germany backs bailout for Greece as EU seeks expanded power

Germany backs bailout for Greece as EU seeks expanded power

By Ambrose Evans-Pritchard
The Telegraph, London
Tuesday, February 9, 2010
Germany is preparing to drop its vehement opposition to a rescue package for Greece, fearing that a rapid escalation of the debt crisis in Southern Europe could endanger German banks and damage the euro.
Wolfgang Schauble, Germany's finance minister, has asked officials to prepare a plan in time for a summit of EU leaders on Thursday, according to reports in the German media. The options include either a loan from EU states or some sort of institutional EU response.
The news pushed the euro to $1.38 against the dollar, the strongest one-day rally since the single currency began its nose-dive late last year. Yields on Greek 10-year bonds plummeted 36 basis points to 6.39 percent in a matter of hours as speculators scrambled to exit overstretched positions, with synchronised moves for Portuguese, Spanish, and Italian bonds.
Michael Meister, parliamentary chief for Germany's Christian Democrats, said the crisis could not be allowed to drag on. "Our top priority is the stability of the euro," he told FT Deutschland. "Should Greece receive help, it will only be under tough conditions and if the Greek government undertakes root-and-branch reforms."
Germany's apparent backing for a bail-out comes despite worries that it will lead to the breakdown of fiscal discipline across the Club Med region. It also raises troubling questions of fairness. Ireland has tackled its own crisis by slashing wages and going far beyond any measure so far offered by Greece, yet Dublin has not received help.
Germany's dramatic shift in policy changes the character of the euro project. It follows weeks of soul-searching in Berlin, and after increasingly loud pleas from Brussels, Paris and southern capitals. The deciding factor was concern that letting Greece fail risked a "Lehman-style" run on Club Med debt, with systemic spill-over across Europe.
German exposure to the region amounts to E43 billion in Greece, E47 billion in Portugal, E193 billion in Ireland, and E240 billion in Spain, according to the Bank for International Settlements. German lenders are already vulnerable, with the world's lowest risk-adjusted capital ratios bar Japan.
The breakthrough comes as this week's summit of EU leaders in Brussels rapidly evolves from a policy workshop into an historic gathering that may catapult the EU across the Rubicon toward fiscal federalism and a de-facto debt union. The EU's top brass are seizing on the crisis to push for a radical extension of EU powers, saying Greece has exposed the deep flaws in the structure of monetary union.
Herman Van Rompuy, the EU's new president, has submitted a text calling for the creation of an "economic government" that shifts responsibility for economic planning from national authorities to the "EU level."
In a parallel move, Commission chief Jose Barroso said Brussels has treaty powers allowing it to take the reins of economic management. "This is a time for boldness. I believe that our economic and social situation demands a radical shift from the status quo. And the new Lisbon Treaty allows this," he said.
"Economic policy isn't a national but a European matter. No modern economy is an island. When a member state doesn't make reforms, others suffer because of that."
Rumours swept the markets all day on news that Jean-Claude Trichet, the head of the European Central Bank, had cut short a trip to Australia to attend the summit.
It is unclear how long Tuesday's reprieve will last, or whether any bailout involving loans -- as opposed to subsidy -- can solve the deeper crisis of Club Med competitiveness. Wealthy Greek citizens have shifted E7 billion from banks in Greece to foreign accounts, fearing that capital controls in Athens. The withdrawals have echoes of the Mexico's Tequila Crisis in 1994 when Mexicans set off a spiral by shifting funds to the US.
The risk is that capital flight will erode the deposit base of Greek banks, forcing them to shrink loan books. Greek banks do not rely on the fickle funding of wholesale markets -- the undoing of Northern Rock -- but this does not shield them from a deposit run.
Goldman Sachs has downgraded the National Bank of Greece and GPSB. "Greece faces both a liquidity and, potentially, a solvency problem. While we believe that, individually, Greek banks tend to be well-run, the problems they face are outside their operational control," it said.

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CNBC : Evening Brief, February 09, 2010


»click here to see the latest top stories from

CNBC 360 Business Model: Inside The Sports Illustrated Swimsuit Issue
It's not just the biggest magazine event of the year, it's a billion dollar, multimedia juggernaut. This year, the moment the cover is unveiled, CNBC cameras will take you where no one has ever gone before. Join us for an unprecedented look at the business that drives a publishing sensation.

Tonight 9p ET/PT



Breaking News: Greece/Germany
Germany is considering being part of a loan guarantee system for Greece, reports CNBC's Tyler Mathisen.
» Watch Video

Stop Trading, Listen to Cramer!
Mad Money host Jim Cramer shares his stock picks with CNBC's Erin Burnett.
» Watch Video

Obama Speaks Out
President Obama speaks at White House briefing on party lines, deficits and the economy.
» Watch Video

Economic "Power Lunch"
Warren Buffett and former Treasury Secretary Henry Paulson have an economic 'power lunch' chit-chat, live at the Chamber of Commerce annual meeting in Omaha.
» Watch Video

»click here to see the latest top video from

NYT Afternoon Business Update


Stocks Rally on Hopes of Greek Bailout
Stocks climbed on hopes that European officials would move to rescue Greece from its debt troubles.

New European Leadership Faces Economic Hurdles
The European Parliament voted a new European Commission into power, endorsing Jose Manuel Barroso for a second five-year term as its president.

Opel’s Strategy Has Fewer Jobs and Less Capacity
Opel, G.M.’s European unit, says it plan to become profitable by 2012 by cutting its work force by 8,300 while introducing many new models.

China Overtakes Germany as Top Exporter
Chinese exports amounted to $1.2 trillion in 2009, while German exports totaled $1.1 trillion, or €797 billion, the German Federal Statistical Office said.

New Jersey, Home of the Servers
Commercial real estate is experiencing a boom in data center construction, especially in New Jersey, thanks to its proximity to New York’s financial companies.

More Business News

Google Blogs Alert for : Financial and Forex info

Google Blogs Alert for: financial and forex info

US Market Update - Forex Trading, Currency Forecast, FX Trading ...
Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. ...
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One Piece Of Currency Trading For Newbies | Finance Review
By Eddie Lamb
There will always be a lot to learn when you decide get started on fx trading. The currency trading market is known as the Forex market, the Currency Market, or usually, the Forex. This is among the most well known industries on earth.
Finance Review -
FGC BOLSA -FGC FINANCIAL MARKETS: NFA : In separate actions, NFA ...
By Fernando Guzmán Cavero
The Committee found that ACJ and Collazo provided false information to customers about the performance of their accounts by providing fictitious account statements which showed significant equity, when in fact, most, if not all of their equity was lost. The Committee also found that ACJ and Collazo failed to observe high standards and equitable principles of trade in the conduct of their foreign currency exchange (forex) business. ACJ and Collazo did not file an Answer to ...
Patent dispute adds to Toyota's headache - DailyFX Forex Forum ...
By Financial Times
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DailyFX Forex Forum | FX Forum -

IRS. gov: Seven Important Facts about Claiming the First-Time Homebuyer Credit

IRS Tax Tips February 9, 2010

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Issue Number:    IRS Tax Tip 2010-27

Inside This Issue

Seven Important Facts about Claiming the First-Time Homebuyer Credit
If you purchased a home in 2009 or early 2010, you may be eligible to claim the First-Time Homebuyer Credit, whether you are a first-time homebuyer or a long-time resident purchasing a new home.
Here are seven things the IRS wants you to know about claiming the credit:
  1. You must buy – or enter into a binding contract to buy – a principal residence located in the United States on or before April 30, 2010. If you enter into a binding contract by April 30, 2010, you must close on the home on or before June 30, 2010.
  2. To be considered a first-time homebuyer, you and your spouse – if you are married – must not have jointly or separately owned another principal residence during the three years prior to the date of purchase.
  3. To be considered a long-time resident homebuyer you and your spouse – if you are married – must have lived in the same principal residence for any consecutive five-year period during the eight-year period that ended on the date the new home is purchased. Additionally, your settlement date must be after November 6, 2009.
  4. The maximum credit for a first-time homebuyer is $8,000. The maximum credit for a long-time resident homebuyer is $6,500.
  5. You must file a paper return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit with additional documents to verify the purchase. Therefore, if you claim the credit you will not be able to file electronically.
  6. New homebuyers must attach a copy of a properly executed settlement statement used to complete such purchase. Buyers of a newly constructed home, where a settlement statement is not available, must attach a copy of the dated certificate of occupancy. Mobile home purchasers who are unable to get a settlement statement must attach a copy of the retail sales contract.
  7. If you are a long-time resident claiming the credit, the IRS recommends that you also attach any documentation covering the five-consecutive-year period, including Form 1098, Mortgage Interest Statement or substitute mortgage interest statements, property tax records or homeowner’s insurance records.
For more information about these rules including details about documentation and other eligibility requirements visit
YouTube Video:

Forbes Intelligent Investing, February 09, 2010

Intelligent Investing with Steve Forbes


Intelligent Investing Panel
Riding The Rocky Recovery
The Forbes Investor Team weighs recent developments and comes up with a game plan for the remainder of 2010.
With Alexandra Zendrian
Intelligent Investing Panel
When You Get Lululemons, Make Lemonade
Typical sporting goods providers are being given a run for their money.
With Alexandra Zendrian

Video: Intelligent Investing With Steve Forbes

Intelligent Investing With Steve Forbes
Lou Dobbs: Too Big To Fail Is Nonsense
Radio host Lou Dobbs wants a return of Glass Steagall and says "too big to fail" is nonsense.


The New York Times

February 9, 2010

My Alerts

February 9, 2010 Compiled: 12:55 AM


José Manuel Barroso’s economic agenda risks being overwhelmed by the debt crisis that has swept across the Continent.


The feeding frenzy in bond markets over highly indebted southern euro states recalls the runs on European currencies in the 1990s, before the euro was created.

Forbes .com . America on the Rise

America On The Rise
Joel Kotkin
Complaints of China's ascent and the U.S.' collapse are overly pessimistic--and misguided.

The Valuations Con
 Richard Murphy
We're all paying the price for the feckless way bonuses have been calculated.

The Trouble With Progressives
Richard A. Epstein
Bad science leads to monopoly politics.

A Raring Recovery
Brian S. Wesbury and Robert Stein
Our forecast for real GDP growth.

Recall U.S. Interests In Auto Industry
George A. Pieler and Jens F. Laurson
Toyota's troubles expose potential conflicts of interest

Forbes. com Investing Issues: Februaru 09,2009

Believe In The Market's Healthy Skepticism
John Christy, Forbes International Investment Report
Nobody is giving this bull market any credit, but that's good news. Here are some stocks you should buy.

RIMM Is Smart Buy In Smart Phones
Samuel Ro, Forbes Growth Investor
The maker of BlackBerry has stiff competition, but no debt and customer loyalty should keep its stocking moving higher. Nice Beats From Hershey And Brown
Paul Rubillo and Tom Reese
The maker of sweet stuff beats forecasts and hikes its dividend, but don't buy it right now. UPS is good to go.
Attention, American Investors: Abandon Ship!
Neil Weinberg
Obama's record deficit should send savvy investors overseas.
Kicker Bonds Won't Get Creamed When Rates Rise
Alex Anderson, Forbes Tax Advantaged Investor
Yields on some callable municipal and corporate bonds will kick a lot higher when the bonds don't get called.

The Gata Dispatch: New ETF will claim to have gold, silver, platinum, and palladium

New ETF will claim to have gold, silver, platinum, and palladium

9:15p ET Monday, February 8, 2010
Dear Friend of GATA and Gold:
Another exchange-traded fund for precious metals was announced today, this time by ETF Securities USA for a fund that will claim to gold, silver, platinum, and palladium all together. The Dow Jones story about it is below.
The fund's registration statement filed with the U.S. Securities and Exchange Commission can be found here --
-- and says the fund will hold unallocated as well as allocated metal, will place its metal with "sub-custodians" as well as custodians, and will do business with, among others, JPMorgan Chase and Goldman Sachs, financial houses not especially associated with devotion to free markets in the precious metals.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
* * *
ETF Securities Seeks US Permission For New Metals ETF
By Matt Whittaker
Dow Jones Newswires
via The Wall Street Journal
Monday, February 8, 2010
NEW YORK -- ETF Securities USA has filed with the U.S. Securities and Exchange Commission for permission to launch a U.S.-based exchange-traded fund backed by a basket of physical gold, silver, platinum and palladium.
If allowed to begin trading, the new fund may push up prices for the precious metals.
The filing, which was dated Friday, says the company proposes to create the ETFS Physical PM Basket Shares, to be issued through a trust.
"The investment objective of the trust is for the shares to reflect the performance of the prices of physical gold, silver, platinum, and palladium, in the proportions held by the trust, less the trust's expenses," the filing says.
ETF Securities USA "believes that, for many investors, the shares will represent a cost-effective investment in bullion," the filing says.
The precious metals held by the trust will be valued on the basis of London afternoon fixes for gold, platinum, and palladium and by the silver fix at approximately noon London time.
The company expects that the shares will trade on the New York Stock Exchange Arca platform, the filing says.
"The shares are designed for investors who want a cost-effective and convenient way to invest in a basket of bullion with minimal credit risk," the filing says.
The fund will track the spot price of the underlying metal minus management fees and is backed by physical bullion, meaning that physical metal is put into storage to back shares that trade like a stock but track the price of the commodity.
ETF Securities notes that since the fund will take metal off the market, it could cause bullion prices to rise, especially for the relatively small platinum and palladium market, where supply and demand constraints exist that are generally not present for gold and silver.
"Purchasing activity associated with acquiring the bullion required for deposit into the trust in connection with the creation of baskets may temporarily increase the market price of gold, silver, platinum and palladium, which will result in higher prices for the shares," the filing says.
If the SEC declares the new fund effective, ETFS Physical PM Basket Shares would join the company's four other U.S. physically backed precious metals exchange-traded funds.
Holdings in ETFS Physical Swiss Gold Shares (SGOL), ETFS Physical Silver Shares (SIVR), ETFS Physical Platinum Shares (PPLT), and ETFS Physical Palladium Shares (PALL) recently topped $1 billion.
The platinum and palladium funds began trading Jan. 8 on the NYSE Arca and were the first ETFs for the platinum group metals in the U.S. Since they began trading, some market participants have said that they have created price volatility in the platinum and palladium market.
ETF Securities launched the silver fund in July and the gold fund in September.

* * *

Support GATA by purchasing a colorful GATA T-shirt:
Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:
Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon:
* * *
Help keep GATA going
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit:

NYT : Business


The Enforcers
The new enforcement team at the Securities and Exchange Commission is working to

police Wall Street — and to shake off the psychic blow of the Bernard L. Madoff affair.

Toyota Details Recall of 2010 Prius for Brake Problems
The worldwide recall will affect about 436,000 units of the 2010 Prius and other hybrid 

models, according to the company’s filing.

Optimism Persists in a Kentucky Town Where a Carmaker Brought Jobs
As production resumes this week in Georgetown, Ky., and other American cities where 

Toyota builds cars, people are eager to see its recall problems blow over.

More Business News

Morning Digest: Toyota adds new Prius to global recall list ,February 9 ,2010

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Good Morning Fernando, TUE 09 Feb 2010 
Toyota adds new Prius to global recall list
Iran says starts work on making 20 percent nuclear fuel
Greek bailout speculation lifts euro
Google warns Chinese knock-off to stop using logo
Shuttle Endeavour blasts off for space station
Sentiment, success, adventure make Saints "America's" team
Jackson doctor pleads not guilty in singer's death
Broadcaster fined over killing a rat on TV show

Toyota adds new Prius to global recall list
February 09, 2010 04:47 AM ET
TOKYO (Reuters) - Toyota Motor Corp said it is recalling nearly half a million of its flagship Prius and other hybrid cars for braking problems as it seeks to address criticism over the handling of its worst safety crisis.

Full Article
Iran says starts work on making 20 percent nuclear fuel
February 09, 2010 04:07 AM ET
TEHRAN (Reuters) - Iran began work on Tuesday to make higher-grade nuclear fuel, a senior official said, and the Pentagon said the United States wanted a U.N. Security Council resolution on Iran "within weeks" over its nuclear program.

Full Article
Greek bailout speculation lifts euro
February 09, 2010 04:31 AM ET
LONDON (Reuters) - The euro rose on Tuesday on speculation that European Union nations could bail out errant member Greece, while global stocks were flat and emerging market shares climbed.

Full Article
Google warns Chinese knock-off to stop using logo
February 09, 2010 04:13 AM ET
SHANGHAI (Reuters) - Google Inc has sent a cease and desist letter to the operators of a Chinese search website whose logo bears a close resemblance to its own.

Full Article
Shuttle Endeavour blasts off for space station
February 08, 2010 09:29 AM ET
CAPE CANAVERAL, Florida (Reuters) - The space shuttle Endeavour bolted off its seaside launch pad in Florida on Monday, carrying six astronauts on a voyage to install the last two main pieces of the International Space Station.

Full Article
Sentiment, success, adventure make Saints "America's" team
February 08, 2010 01:43 PM ET
MIAMI (Reuters) - The Dallas Cowboys have long been known as 'America's team' but the New Orleans Saints, who triumphed as underdogs in Sunday's Super Bowl, can now make a good claim to that title.

Full Article
Jackson doctor pleads not guilty in singer's death
February 09, 2010 03:34 AM ET
LOS ANGELES (Reuters) - The doctor hired to care for Michael Jackson was charged on Monday with killing the pop star after a lengthy investigation that found a lethal cocktail of drugs in the singer's system when he died last year.

Full Article
Broadcaster fined over killing a rat on TV show
February 08, 2010 03:09 PM ET
SYDNEY/LONDON (Reuters) - British broadcaster ITV pleaded guilty to animal cruelty and was fined by an Australian court on Monday after a rat was killed and eaten on the reality TV show "I'm a Celebrity ... Get Me Out of Here."

Full Article