Tuesday, December 24

Finance, Investing

High finance, equity markets and economic data related to it.

Amid Protests, Brazil Passes 20-Year Austerity Plan
16Dec By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Domestic Politics, Global Economics

Amid Protests, Brazil Passes 20-Year Austerity Plan

News Brief Damaged by a two-year recession, corruption scandals and protests at home, Latin America's largest economy turned to constitutional reforms to control its rising debt and spending. Brazil's Senate voted 53-16 in favor of a 20-year cap on spending increases for social welfare programs. The House has already passed the bill, which becomes law. The constitutional amendment, PEC 55, will cap government spending on health care, education and social security through 2036 at current rates adjusted for inflation. Supporters said it will create certainty in fiscal budgets, control rising debt, and attract foreign investment. They said the amendment also guarantees a floor for the spending programs. Opponents, however, said the spending caps would hurt the poorest and lock fu...
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Fate of Greece in Limbo After Voters Choose ‘No’ to Debt Deal
6Jul By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Democracy, Europe, EU, Eurozone, Types of News: Analysis

Fate of Greece in Limbo After Voters Choose ‘No’ to Debt Deal

A day after an unprecedented referendum in which Greek voters rejected an offer by creditors to continue their bailout of the country's finances in exchange for strict economic reforms, the fate of Greece and its proud people lie in deep uncertainty. With a vote of 61-to-29 percent, the Greeks resoundingly said "no" to their European partners' plans to continue financing Greek debt under the condition that Greece would pass more "austerity" measures such as cuts to pensions and spending programs and increases in the value-added tax. Now, though everyone seems to deny the possibility of a Greek expulsion from the 19-member common-currency Eurozone, the path to keeping Greece in the union isn't clear. Key European leaders are sending mixed signals. Eurogroup (group of finance min...
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Greece Puts Debt Bills Up For Democratic Vote
27Jun By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Democracy, Europe, EU, Eurozone, Foreign Aid, International Development, Global Economics, Types of News: Brief

Greece Puts Debt Bills Up For Democratic Vote

Greece is to hold a national referendum to decide whether the country will accept a deal offered by creditors over the country's debt obligations and tax, spending and pension policies. Caught between his government's promises to pay its debts and his own campaign promises to oppose fiscal reforms demanded by creditor institutions, Greek Prime Minister Alexis Tsipras announced today that he will let the people decide the fate of the country. "Our responsibility is for the future of our country. This responsibility obliges us to respond to the ultimatum through the sovereign will of the Greek people," Tsipras said. While it seems like a lot is riding on the national referendum, scheduled to take place Sunday, July 5, the vote might come too late. Greece owes a debt payment of €1.5...
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