Milton Wolf's Global Forecast

The world crisis is a problem for politicians and economists alike. Politics has used the crisis to their advantage in some cases. In the US careers have been made and destroyed as a result of this serious global financial discord. According to Milton Wolf the U.S. is in recovery. Wolf went on to say that the financial System has been saved, lead by the feds and very aggressive policies. "The CentralBank has done a good job managing the global crisis. In aggregate, we saved the financial system, and the Central Bank has been aggressive to keep the banks liquid. The Central Banks have ignored the criticism, and they have brought us to recovery"

That said, there needs to be some adjustment in the EU Zone. Members of the European Union had indulged in a lot of bad lending and borrowing practices. This is illutrated by the spreading financial troubles in Portugal, Belgium and Spain, after bailouts offered to Ireland and Greece. The EU Zone (with the help of IMF) has provided just enough money to avoid defaults. Given the financial crisis, the Euro, may cease to exist anytime soon. The world crisis is a problem for politicians and economists alike. Politicians has used the crisis to their advantage in some cases. In the US careers have been made and destroyed as a result of this serious global financial discord.

Listen to Milton Wolf's view of the Global Economy, and what can we expects. Click Here

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K. Reilly
Cohn-Reilly Report

Internaltional And Domestic Market Clips

Europe: Corporations Brace for tighter credit
Unlike US corporations, the majority of the companies in Europe heavily depend on banks for financing. Most of Europe’s banks passed the stress test, but have a steep hill to climb with respect to raising several billions in capital to fund new lending. It looks as though European banks have won the battle, but the war rages on.
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Wall St. Journal reported that the financial-overhaul law may force public firms to toughen up on “clawback” rules, and make executives repay improperly awarded incentive compensation.
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Maket was inspired today, with a little help from news about BP’s CEO stepping down, and Housings sales, which spiked 24% in June, following slump in May
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Cohn-Reilly Report / News Flash

Dubai: Too Big To Fail

Stocks in Asia rebounded from earlier losses after the announcement of Dubai’s $10 billion bailout. The capital infusion marks one of several attempts for the emirate, which controls the UAE’s presidency, to salvage Dubai World, as well as the overall reputation and credit worthiness of the government. Standard and Poor’s. stated that "the move is a step toward rebuilding confidence”.

It's important to note that Abu Dhabi has directly and indirectly provided Dubai with as much as $25 billion over the past year, illustrating a commitment to keeping Dubai world afloat. Much of the support has come in the form of investment, such as purchasing large blocks of Dubai bonds. The message to the global financial community is a familiar one: "Dubai is too big to fail”.

So for now, the dreamy World of Dubai will be able to make interest payments, while any remaining funds will be used to cover its business needs though April.

Trivia of Interest:
At present, Abu Dhabi boasts the worlds highest absolute and per-capita level of sovereign wealth funds, calculated at USD 1,000,000.00 per inhabitant.

Somehow I wish I didn't know that.

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K. Reilly
Cohn-Reilly Report / News Flash