September 6, 2012 |
The European Central Bank moved decisively Thursday in announcing that it would buy the bonds of struggling governments without limit, an initiative that could save the euro zone and blunt one of the main threats menacing the global economy. The unprecedented step, meant to reassure fearful investors that euro-zone governments would not default, sparked a rally on world stock markets. U.S. stock indices posted their largest gains in weeks, with the S&P 500 soaring 2 percent and closing at a...
August 5, 2011 |
Standard & Poor's announced Friday night that it has downgraded the U.S. credit rating for the first time, dealing a symbolic blow to the world's economic superpower in what was a sharply worded critique of the American political system. Lowering the nation's rating to one notch below AAA , the credit rating company said "political brinkmanship" in the debate over the debt had made the U.S. government's ability to manage its finances "less stable, less effective and less predictable.
August 20, 2013 |
The Indian rupee is in a free fall, and the nation is aflutter. Almost every day, Indians are waking up to alarming headlines about their currency hitting a "historic low" or a "lifetime low. " Last week, on what was dubbed "Black Friday," the currency sank to a record level, and Indian media carried pictures of workers in Mumbai's financial district clutching their heads in dismay. With the country's stock market tumbling, the rupee fell further Tuesday. It is down about 15 percent against the U.S. dollar since...
May 29, 2012 |
Spain's economic problems are deepening, pushing the country closer to an international bailout that U.S. and European officials worry could destabilize the global economy. The risk that the euro zone's fourth-largest country may need a massive dose of outside help is forcing the region's leaders to accelerate weighty decisions they had expected to consider over time. These include deciding whether the euro-zone countries should begin issuing bonds that they all jointly back,...
March 9, 2012 |
ENACTED IN 2010 as part of the Dodd-Frank financial reform law, the " Volcker Rule " bans commercial banks from speculating in hedge funds and the like. The purpose, according to its eponymous advocate, former Federal Reserve chairman Paul Volcker, is to prevent banks from taking excessive risks with the funding advantage federal deposit insurance gives them. Such "proprietary trading," Mr. Volcker argued, destabilized the entire financial system for the sake of nothing more than bank profits and trader bonuses.
July 19, 2011 |
After he switched to the Republican Party in 1962, Ronald Reagan famously quipped: "I didn't leave the Democratic Party. The party left me. " Now, the Republican Party is doing the same thing to him — and Democrats are happy to take Reagan back. At Tuesday morning's meeting of the House Democrats, caucus chairman John Larson rallied his colleagues for the day's debt-limit debate by playing an audio recording of the 40th president . "Congress consistently brings the government to the edge of default before facing its...