In the News: “‘The crisis of its [Italy’s] debt can destabilize the entire world, beginning with France. … I realized that we are falling into the abyss, the clock of the policy makers does not coincide with that of the market, and we need a great acceleration,’ said [Carlo de Benedetti, CEO of the Italian manufacturer Olivetti]. (Source: Corriere della Sera)
“Fitch Ratings warned that it may reduce its ‘stable’ rating outlook for U.S. banks with large capital markets businesses because of contagion from problems in troubled European markets.
“Agency Fitch Ratings warns that a further worsening of the eurozone debt crisis promises serious risks to American banks that have a portfolio of government bonds of countries of concern. The size of national debt exceeded $15 trillion and is almost 100 percent of GDP, the established ceiling of the official national debt.
“‘Unless the euro zone debt crisis is resolved in a timely and orderly manner, the broad outlook for U.S. banks will darken,’ Fitch said. ‘The risks of a negative shock are rising.’
“The analysts don’t expect a resolution of the issues for another 12 months or so, and are unlikely to adjust their outlook on the sector quickly. ‘This is going to have a prolonged and uncertain income,’ Mr. Scott [one of the analysts who wrote the Fitch report] said.” (Source: The Globe and Mail)
“It may well be so that if the U.S. government initiates political games around its debt problem again, a new wave of the global crisis might cover the world by the New Year.” (Source: Utro.ru)
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