Forbes (May 19)
“As bitcoin and crypto traders come to terms with the huge price crash that’s wiped $1 trillion from the combined crypto market since April, fears are mounting that more pain could be on the way if stock market contagion spreads.”
Tags: $1 trillion, Bitcoin, Contagion, Crash, Crypto market, Fears, Pain, Price, Stock market, Traders
Bloomberg (October 13)
“The vital question for many investors has been whether the problems for speculative real estate will cause broader contagion, either through cascading losses in the financial system or through economic weakness.” The former remains unlikely, but “the second — an economic slowdown of which Evergrande is both a cause and a symptom — grows more likely with time.”
Tags: Cascading, Contagion, Economic weakness, Evergrande, Financial system, Investors, Losses, Real estate, Slowdown, Speculative, Vital
Reuters (April 23)
“India has slender room to act if economic activity follows its medical infrastructure into a virus-induced state of collapse…. Optimists hope antibodies and vaccines will cause the Covid-19 contagion to burn out quickly. The government will have a hard time softening the financial pain if it doesn’t.”
Tags: Antibodies, Collapse, Contagion, COVID-19, Economic activity, India, Medical infrastructure, Vaccines, Virus-induced
Bloomberg (April 24)
“European Union leaders have been unequivocal in their insistence that Greece has been ring-fenced, and that the common-currency project can survive the departure of its weakest member. They may be right; but we won’t know for sure whether contagion is alive or dead unless and until Greece bows out.”
Tags: Contagion, Currency, EU, Greece, Ring-fenced
Financial Times (March 16)
“Since nobody knows how many days or weeks Athens is from insolvency, the risk of a sudden exit is clear and present. Grexit may never happen — but it is time to get ready.” Without preparation, it is possible that “a sudden seizure of the Greek financial system” could “bring about a humanitarian crisis, global financial contagion and reputational damage to the EU.”
Tags: Contagion, EU, Financial system, Greece, Grexit, Humanitarian crisis, Insolvency, Reputational damage, Risk
Euromoney (May 21)
As the European currency crisis continues to unfold, the spotlight shifts. “Spain’s economic political future hangs in the balance, as fears over Greece’s exit from the eurozone leave the credibility of its financial stabilization plans in tatters without urgent redress from eurozone policymakers.” And if Spain falls to contagion, there’s no telling where the downward spiral will end, though Italy would probably be the next to fall.
The Independent (July 13)
“The nightmare of full eurozone contagion appears to have moved a step closer.” Yet policymakers remain in denial. Until they leave this denial behind, attempts to tackle collapse will remain elusive. European leaders must realize the debt crisis essentially renders many European banks insolvent, it is nearly impossible for indebted countries on the periphery to grow themselves out of crisis while hedged in by the common currency and, lastly, that the eurozone could indeed crumble.
Tags: Banks, Contagion, eurozone, Policymakers
Wall Street Journal (May 5)
Like the market, the Wall Street Journal is calling the €110 billion Greek rescue package “a flop.” Contagion has continued to spread with the euro sinking in value and European stock markets down nearly 3%. At the heart of the matter, however, lies a simple explanation: “Greece is well and truly bankrupt.” This is no mere crisis of market confidence or psychology. Greece will not be able to repay all of its debts on time.
Like the market, the Wall Street Journal is calling the €110 billion Greek rescue package “a flop.” Contagion has continued to spread with the euro sinking in value and European stock markets down nearly 3%. At the heart of the matter, however, lies a simple explanation: “Greece is well and truly bankrupt.” This is no mere crisis of market confidence or psychology. Greece will not be able to repay all of its debts on time.
Tags: Contagion, Europe, Greek crisis
