Crude futures end lower on fears of European debt crisis

ATHENS (AP) — The government debt crisis that has shaken Europe’s shared currency widened and intensified Tuesday as Portugal saw its credit rating cut — and Greece’s was reduced to junk status. Keep Reading

Greece Debt Crisis: Breaking News

Greece Debt Crisis: Sarkozy Says Europe Will Help Greece During Meeting With Georges Papandreou
PARIS — Speculators beware: The euro zone’s biggest powers will back Greece through the debt crisis that has jeopardized all 16 nations in the common currency, French President Nicolas Sarkozy said Sunday. Greek Prime Minister George Papandreou, in Paris as part of a four-city tour seeking firmer EU and U.S. support for new austerity measures to rein in its massive budget gap, received from Sarkozy the most outspoken support for his plans yet. The French leader, coveting the chance to play the statesman with regional French elections to begin next Sunday, issued a warning to traders who would bet against the euro zone’s willingness to defend a member state. And in a show of high-stakes poker with speculators, he purposely didn’t detail what measures the bloc might take. Papandreou’s government has committed to a severe austerity plan to reduce Greece’s massive 12.7 percent budget deficit, and has warned that going to the International Monetary Fund is an option if a European solution is not found. “The Greek government … took the measures asked of it. Euro zone states must now be ready to take theirs,” Sarkozy told a news conference alongside Papandreou at the French presidential palace. “Of course, the future of Greece is in question, but it’s also that of Europe being played out,” Sarkozy said. “Europeans have created a common currency – all the countries that share this currency must show solidarity.” Sarkozy, who along with German Chancellor Angela Merkel is seeking to calm markets and bring down Greece’s high borrowing costs, didn’t spell out any specific ideas. “Concrete, precise methods exist – ones we don’t need to communicate about tonight, certainly not,” he said.

The Greece debt crisis is far from over
With government bond yields still high, Greece may not be able to service its debt, making a joint eurozone and IMF rescue ever more likely..

Greece must do more to tackle debt crisis, EU says
ATHENS (Reuters) – Greece needs to take further action quickly to tackle its debt crisis and meet its budget goals, European Union Economic and Monetary Affairs Commissioner Olli Rehn said on Monday..

Greece not looking for EU handouts with debt crisis, says Papandreou
But prime minister says if country is to avoid a bailout it needs political backing of other EU nationsThe Greek prime minister, George Papandreou, insisted today that his country was not looking for EU “handouts” to solve its debt crisis.But he said that to avoid succumbing to a bailout the country needed the political backing of other EU nations to restore credibility with investors. “Let us [sit down] with the EU authorities, the commission and the European Central Bank, let’s look at our progress and how we are doing with the stability and growth plan we have tabled,” he said. “[Let us] show you that what we are saying is being implemented.”In an interview on the BBC’s Andrew Marr Show, he said the key to the country’s economic recovery was being able to borrow money at the same rates as other countries. “We need the help so that we can borrow at the same rate as other countries, not at high rates which undermine our ability to make the changes we need to make [to Greece's deficit].”Greece insists it can tackle its â‚¬300bn (£260bn) debt alone, but concerns over its ability to do so have weighed on the euro. It needs to raise some â‚¬54bn this year to cover its budget shortfall and a report in the German magazine Der Spiegel claimed the finance ministry plans to ask eurozone countries for a â‚¬25bn aid package.Papandreou’s socialist government says it will cut the public deficit, which accounted for 12.7% of GDP at the end of 2009 ” more than four times the level allowed under EU rules ” by 4% this year, with a goal of bringing it under 3% by 2012. Papandreou did not comment on the specifics of the government’s plans but said it could be anything from a “guarantee” from Brussels to finding other ways of borrowing money.

Greece and Brussels clash over debt crisis
Doubts over Greek efforts to resolve the debiltating debt and deficit crisis that is imperilling the euro’s stabilityAthens and Brussels clashed today over whether Greece was doing enough to resolve the debilitating debt and deficit crisis that is imperilling the stability of the euro.George Papaconstantinou, the Greek finance minister, pleaded for time and argued that the radical austerity programme aimed at slashing 4% from the ballooning budget deficit this year was unprecedented in his country’s history.But Olli Rehn, the European commissioner for economic and monetary affairs, cast doubt on the Greek package, demanding extra action.”Risks are materialising, and therefore there is a clear case for additional measures,” said Rehn of the programme that has already been endorsed by the commission and is supposed to be supported by European finance ministers tomorrow.”We’re embarking on reforms never attempted before,” replied Papaconstantinou. “Let’s go with common sense.”The spat between Brussels and Athens came as the finance ministers from the 16 countries using the single currency met to finesse their plans for overseeing rigorous implementation of the package, which is aimed at warding off the threat of Greek insolvency and reducing market pressures on the euro.A European summit last week made tough demands on the Greek government while also offering vague promises of help if needed to avert a sovereign default.The Greek finance minister dismissed talk of “imminent collapse” as “absurd” and insisted that his centre-left Pasok government had broad public support at home as it tackles the eurozone’s worst ever crisis.”We’re trying to change the course of the Titanic,” he said. “Anyone else doing this would get applause. But they tell us: ‘You’re not doing enough. You won’t be able to do it anyway.’”Papaconstantinou “partly” blamed the hedge funds for betting against the euro and Greece, aimed at engineering a “self-fulfilling prophecy”. He voiced support for tighter regulation of hedge funds trading in credit default swaps on Greek debt.

Greece, Portugal debt crisis hits stocks
U.S. stocks followed European markets sharply lower Tuesday after Standard & Poor’s downgraded the debt of Greece and Portugal. Business – Portugal – Financial Services – Financial Planning – Debt Consolidation.

Greece Downgraded As Europe’s Debt Crisis Worsens
Greece asks for EU-IMF bailout.

Greece Debt Crisis Deepens; S&P Rates Bonds As Junk
The Greek debt crisis deepened Tuesday with the Standard & Poor’s cutting the rating on that nation’s debt to junk-bond level, helping to trigger a sell-off in the financial markets. The Dow was down around 150 points at one point but as of around 1 pm it had regained some ground and was off around 138 points..

Debt Crisis in Greece Top Issue at Finance Meeting
Financial leaders pledge to address risks posed to global recovery by high government debt.

Debt Crisis In Greece Top Issue At Finance Meeting
IMF expects global economic growth of 4.2 pct.

User-Submitted Links

Using social media for crisis communication
What Toyota can teach us about using social media for crisis communication

And Germany made the Greek crisis much, much worse
The Greeks are mainly responsible for their current predicament. But the German government has made the country’s situation worse with its lectures and reluctance to provide assistance.

Recent Activity on Twitter

Crisis: I have run out of peanut butter AND nutella. Without them, not sure if I can make it to the store to buy more.
Having an identity crisis– Get graphic goodies with your (business) name and face on them! Make them know who you are! www.cliffdigital.com
Goldman CEO denies wrongdoing in crisis: |
The CEO of Goldman Sachs is testily defending his company’s ethics and… http://bit.ly/aVJnsG
Rwanda denies political crisis before August vote: KIGALI (Reuters) – Rwanda Tuesday denied there was a political … http://bit.ly/9ePt6W
Hasn’t the financial crisis proved that we need to have genuinely nationalised banks (and remutualised building (cont) http://tl.gd/123s63
Wall Street and the Crisis of Urban Violence by Chris Butler http://ow.ly/1DOdt
Greece downgraded as Europe’s debt crisis worsens (AP) – AP – Europe’s government debt crisis worsened ominous… http://ow.ly/17c6xu
Teacher Librarian Virtual Cafe Crisis Webinar Archive chris harris http://bit.ly/bDd8JU
RT @LisaGraas: via @rsmccain Dow Loses 213 Points on Debt Crisis in Greece, Portugal; http://dlvr.it/fLGs
@AP:Not us: Goldman execs deny wrongdoing in crisis
Our Giant Banking Crisis–What to Expect | Essay based on Reinhart and Rogoff’s "This Time It’s Different& – http://subdomainz.com/xst
Goldman Sachs Comes Before the New Pecora Commission | FDL News Desk: But in looking at this crisis, it’s hard not to echo the concl..
Big Banks Are Back as JPMorgan, Citigroup Turn Corner on… http://bit.ly/bWf9dq #back #banks #citigroup #corner‘ #crisis #jpmorgan #turn
www.Europe-VIP.com Treasurys jump as Europe’s debt crisis deepens
(AP): AP – Interest rates are falling in th… http://bit.ly/cgEQbj
Gold Settles Higher On Sovereign Debt Crisis Fears: Gold Settles Higher On Sovereign Debt Crisis Fears http://bit.ly/b2ogc9

News Media

EU Proposes Measures to Help Airlines After Ash – New York Times
Airport slot coordinators calculate slot use on a six-month basis, which means the lost week caused by the ash crisis represented about 4 percent of normal …

Goldman CEO denies wrongdoing in crisis – Fort Worth Star Telegram
While the famous firm fights for its reputation, senators said the company's behavior leading up to the financial crisis clearly demonstrated a need for …

Why the Greek crisis won’t go away like the ‘Asian flu’ of ‘97 – Seattle Times
Commentators keep worrying about the "contagion" of the so-called sovereign debt crisis, not only in Greece but also Portugal, Ireland and even Spain. …

Europe debt crisis spreads to Portugal – Philippine Star
"We have the makings of a market crisis here," said Neil Mackinnon, global macro strategist at VTB Capital. Greece is struggling with massive debt, …

Rwanda denies political crisis before August vote – Washington Post
By Kezio-Musoke David KIGALI (Reuters) – Rwanda Tuesday denied there was a political crisis in the run-up to the August presidential election despite the …

In pictures: Niger’s food crisis – BBC News
He warned the crisis is only just beginning. Only a small part of Niger has fertile soils and arable land – most of the country is in the Sahara Desert. …

Crisis as red shirts shut rail system – Daily Nation
… system to shut on Tuesday, and the government warned of tougher operations to quell growing unrest in a seven-week crisis that has killed 26 people. …

Greek crisis begets a German backlash – Financial Times
When Josef Joffe, then foreign editor of the German daily SÃ¼ddeutsche Zeitung, wrote a 4000-word essay in December 1997 attacking the planned …

ECBs Trichet: No Comment on Greece; Ongoing Talks – Market News International
Speaking at a morning event at The Chicago Council on Global Affairs on "Lessons from the Financial and Economic Crisis," Trichet said central bankers faced …