For the unemployed, no reprieve on budget cuts
Starting this week, many in California collecting federal unemployment benefits will get about 17.7% less than they got last week, thanks to Washington’s across-the-board budget cuts.
Those cuts — the so-called sequester — require that states pay out less on federal extensions of benefits, and the reduction is retroactive to March 1, when the sequester went into effect.
Moody’s downgrades Slovenia to ‘junk’ bond rating
Moody’s Investors Service cut Slovenia‘s government bond rating by two notches to Ba1, its highest “junk” bond rating, from Baa2 on Tuesday and said the outlook for the rating remains negative. The ratings firm cited three factors: the health of the country’s banking sector, the marked deterioration of the government’s finances, and uncertain funding prospects that heighten the probability that external assistance will be needed. The government had been seeking to raise cash through a bond sale, but called it off earlier Tuesday ahead of the ratings announcement.
Bad Economy Sends Spaniards Packing for Latin America
Overall, 310,000 fewer migrants went to Spain from Latin America during 2008-2010 in comparison with the previous three years. In 2011, the number of Latin Americans granted residency in Spain fell to half of the figure reported in 2007.
“Spain had a lot of people from Peru and Ecuador, but now with the crisis the Latinos who came to Spain for jobs are going back [home] … they don’t have work,” Rodriguez says.
Perth Mint working flat out on weekends to satisfy gold rush
”We haven’t seen levels like this since the 2008 global financial crisis,” Mr Currie said. ”Compared to March sales, April sales have doubled or tripled.”
Gold buyers forced to go on waiting list
Investment company Physical Gold said there were waiting lists of three weeks for some coins, and four to six weeks for gold bars. “Previously all would have been available within a few days,” the company said.
The company said that it had seen a 50pc increase in enquiries about purchasing gold and a 35pc increase in sales, with people buying tax-free gold coins. “We are now starting to experience physical gold shortages,” said Daniel Fisher, CEO of Physical Gold.
‘There will be more wealth confiscation, without a doubt’
European politicians will take the “easy option” of taking money from the rich rather than raising taxes and cutting spending to deal with the continent’s debt problem, Lars Christensen, the head of Saxo Bank, said.
Asked if the raid on uninsured savings in Cyprus would be repeated, he told City AM: “There will be future bail-ins [loss of deposits] and other types of confiscation of wealth in the eurozone, without a doubt.
Canada can’t account for $3.1B in anti-terror funding, AG finds (westcoastjan)
“It’s a matter of missing that last link in putting that information together,” he said at a news conference in Ottawa Tuesday morning. If the money was reallocated from the anti-terrorism program to another program, there should have been approval for that, he added.
“We don’t have enough information to say whether that happened,” he said.
The Crash BEFORE the Climb (GE Christenson)
Markets rally, correct, rally, and correct again. Some of the corrections are so severe we call them crashes. In the big picture, it hardly matters whether the crashes were accidental, encouraged, manufactured, or all three. In the big picture, what matters are the market fundamentals. After the correction, have the fundamental drivers of the market changed?
Neil Macdonald: The illusion of growth (westcoastjan, Nervous Nelly)
The Bank of England, the most energetic money printer in the world relative to the size of the economy it serves, has printed £375 billion (roughly $576 billion US), and is probably going to print more. The Bank of Japan has just launched an aggressive money-printing program of its own, planning to double the size of its balance sheet within two years.