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Debt Crisis

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NEWS
November 28, 2011 | By Christi Parsons
President Obama pushed European officials today to take quick action to end their debt crisis, highlighting the growing concerns about the impact their troubles could have on the U.S. economy. But while Obama announced that U.S. is “ready to do our part” to help Europe resolve its problems, the leaders didn't detail new plans as they emerged from a series of meetings at the White House. Much of the annual summit between the U.S. and the European Union focused on the euro-zone crisis, Obama told reporters after his meeting with European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso.
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WORLD
December 17, 2013 | By Henry Chu
LONDON - She's once, twice, three times a chancellor: Angela Merkel, Germany's first female leader, was sworn in Tuesday for her third term, underlining her dominance on the political scene in Europe's biggest economy. Merkel, 59, returns to power at a time when the region has yet to get back on its feet fully from its still-unresolved debt crisis, and as Germany's relations with the United States continue to suffer from the fallout over revelations that American spies tapped her phone and collected electronic data on ordinary Germans.
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BUSINESS
September 6, 2012 | By Jim Puzzanghera
The European debt crisis is pushing the continent into recession and dragging down the global economy, according to a forecast released Thursday by the Organization for Economic Cooperation and Development. Growth in the world's seven major industrialized economies is expected to slow to just 0.3% in the third quarter of this year, and 1.1% in the fourth quarter, the group said. Deep problems in Europe are driving that slowdown, with the Eurozone's three largest economies -- Germany, France and Italy -- forecast to contract a combined 1% in the third quarter and 0.7% in the fourth quarter.
BUSINESS
October 17, 2013 | By E. Scott Reckard
Fixed mortgage rates rose early this week amid the debt crisis, Freddie Mac's latest survey showed, with lenders offering the 30-year home loan at an average of 4.28%, up from 4.23% a week earlier. The offering rate for 15-year fixed mortgages averaged 3.33%, according to the survey, up from 3.31% last week.  The survey was conducted Monday through Wednesday morning, a period when it was uncertain if Congress would lift the maximum amount of debt the government can shoulder.
NEWS
November 3, 2011 | By Christi Parsons, Washington Bureau
President Obama pledged this morning to stand with European leaders as they work to resolve their debt crisis, amid confusion about what the leading economies can do to save the current plan as it heads into rough waters. While Obama and other world leaders made their way here for a summit involving leaders of the Group of 20 advanced and emerging economies, divisions opened within the Greek government over the wisdom of its tentative plan to hold a referendum on the new European debt deal.
NEWS
March 17, 2013 | By Christi Parsons
WASHINGTON -- The country isn't facing an immediate debt crisis, House Speaker John Boehner (R-Ohio) said Sunday, but he argued that Congress and the president must reform entitlements to avert one that lies dead ahead. “We all know that we have one looming,” Boehner said on ABC's “This Week”. “And we have one looming because we have entitlement programs that are not sustainable in their current form. They're going to go bankrupt.” Boehner expressed agreement with Obama's statement in an ABC interview the other day that the debt doesn't present "an immediate crisis.
WORLD
October 23, 2011 | By Henry Chu, Los Angeles Times
The leaders of France and Germany said Sunday that they had made progress in bridging their differences over a wide-ranging strategy to combat Europe's debt crisis but that the "mind-boggling technical complexity" of the task meant they needed until midweek to finish preparing their plans. Intensive negotiations are continuing between Paris and Berlin, the two heavyweights of the European Union, over how best to increase the firepower of the EU's $600-billion bailout fund and to reduce Greece's staggering debt burden.
BUSINESS
March 29, 2012 | By Tiffany Hsu
The economy is moving faster in the U.S. than it is across the pond, according to a new OECD report predicting that domestic growth will outstrip Europe's. The U.S. economy will expand at a 2.9% annual rate in the first quarter and then a 2.8% rate in the second, according to the Organization for Economic Cooperation and Development . That's much faster than the 1.9% overall growth rate forecast for the advanced nations considered to be in the Group of Seven. The credit goes to the rebounding stock market in the U.S., as well as consumer confidence that is near one-year highs and promising movements in the job market, according to the OECD.
CALIFORNIA | LOCAL
June 25, 1987
In response to John Broder's article (June 12), "Way Open to Solve Global Debt Crisis," I would like to point out that there is perhaps a once-in-a-generation opportunity now for the World Bank to take action that could substantially help Third World countries to overcome their horrendous debt burdens. As the article pointed out, what is lacking in many of the countries is an economic base, a necessity for the repayment of loans such as those made in recent years by commercial banks.
BUSINESS
September 6, 2012 | By Don Lee and Henry Chu, Los Angeles Times
The European Central Bank unveiled an aggressive plan to buy the bonds of financially flailing countries such as Spain and Italy, its boldest step yet to stanch the continent's 3-year-old debt crisis and one that could lift the U.S. and the global economies. The bond-buying plan unveiled Thursday is intended to stimulate economic growth by reducing the borrowing costs for cooperating Eurozone governments. But its ultimate purpose is to set up a financially adequate and politically acceptable way of containing the crisis and maintaining the survival of the euro currency.
WORLD
September 23, 2013 | By Henry Chu
LONDON -- Fresh from her party's best election showing in more than 20 years, German Chancellor Angela Merkel started the tricky task Monday of forming a new government after her preferred coalition partner was ousted from parliament in a shocking result. Merkel's jubilation over winning a third term as chancellor, which would extend her time in power to 12 years, gave way to the political reality that she still needs to find a junior party with which to govern. Despite garnering far more votes than that of any other group, Merkel's center-right Christian Democratic Union fell five seats short of a majority in the Bundestag.
WORLD
September 20, 2013 | By Henry Chu
BERLIN - Her necklace made more of a statement during a televised debate than she did, with beads the colors of the German flag. Even her supporters admit she's no soaring orator. A giant campaign billboard features a close-up of her hands, not her face. But the owner of that patriotic jewelry and those hands with their fingertips pressed together looks poised to renew her claim as the world's most powerful woman. Germans go to the polls Sunday, and almost all indications are that Chancellor Angela Merkel will emerge with a third term as leader of Europe's most populous nation and its biggest economy.
BUSINESS
July 26, 2013 | By Andrew Tangel
NEW YORK -- What's the deal with Wall Streeters penning songs as the housing market collapsed? Fabrice Tourre, the former Goldman Sachs employee on trial for alleged securities fraud in a high-profile case from the financial crisis, is the latest contributor to this little-known genre. It was a Saturday afternoon in February 2007, and Tourre -- nicknamed "Fabulous Fab" -- wrote a song parody in his native French. Translated: In the trading rooms A few of us Were looking for glory Although we were sad To have an empty P&L We could not help but keep on hoping And when a few clients Took a credit-linked note In exchange of a good fresh P&L We narrated verses Gathered around the stove Forgetting about the crisis Tourre's lyrical talents emerged in his civil trial over a case brought by the U.S. Securities and Exchange Commission.  PHOTO GALLERY: The costliest bank failures The regulator trotted out the song -- contained in an email labeled Plaintiff's Exhibit PX-148 -- during Tourre's testimony Thursday in a federal courtroom in Manhattan.
WORLD
July 3, 2013 | By Henry Chu
LONDON -- After lying relatively dormant for months, Europe's debt crisis threatened to flare up again as political instability spread through some of the continent's most financially troubled nations Wednesday. The Portuguese government teetered on the brink of collapse over internal disagreements regarding the country's tough austerity program, which Lisbon was forced to implement to qualify for an international bailout in 2011. Two Cabinet members resigned this week, including the finance minister, who said that political and public support for his fiscal crackdown had evaporated.
WORLD
June 15, 2013 | Henry Chu
After years of unrelenting austerity, Europe seems to have turned a corner on its debt crisis -- right into a dead-end street. Since the turmoil erupted in 2009, countries from Ireland to Greece have focused almost exclusively on slashing budget deficits and debt as the road back to economic health. Prodded by Germany and its insistence on fiscal virtue, governments elsewhere have fired workers, chopped welfare benefits and shelved big-ticket projects, turning the continent into what some call one giant "Austerity-land.
WORLD
April 2, 2013 | By Henry Chu
LONDON -- Joblessness in the 17-nation Eurozone hit a record high in January and February, according to statistics released Tuesday that gave a grim snapshot of the region's continued economic malaise. The unemployment rate rose to 12% in the first two months of the year, the highest level since the euro was introduced more than a decade ago. That translates to about 19 million people who were out of work in February, 1.8 million more compared with the same time last year. But the average masks wide disparities among the 17 countries that share the euro currency.
BUSINESS
April 21, 2012 | By Don Lee
WASHINGTON -- One by one, the world's top finance officials Saturday pressed Europe to do more to shore up its debt problems, warning that the global recovery remains fragile and that the Eurozone  shouldn't relax now that it has secured more resources to fight the crisis. In statements issued a day after officials announced commitments to boost the International Monetary Fund's emergency lending capacity by $430 billion, finance ministers meeting here called on euro-area policymakers to strengthen their banks and continue to make economic reforms that would lead to stronger and more balanced growth.  U.S. Treasury Secretary Timothy F. Geithner, while welcoming the new commitments to bolster the IMF's firepower, said: “The success of the next phase of the crisis response will hinge on Europe's willingness and ability, together with the European Central Bank, to apply its tools ... flexibly and aggressively to support countries as they implement reforms.
BUSINESS
April 2, 2013 | By Jim Puzzanghera
WASHINGTON -- The unemployment rate in the 17-nation Eurozone was a record high of 12% in February as Europe continued to struggle with its debt crisis. The February rate was the same as January, which was revised up slightly from an initial figure of 11.9%, the region's statistical office, Eurostat, said Tuesday. The 12% rate was the highest since the Eurozone began tracking the data in 2000 after creation of the region's single currency. The unemployment rate has been consistently hitting new records since late 2011 as the European economy has been dragged into recession by major debt problems in countries such as Greece, Italy and Spain.
OPINION
March 29, 2013
Re "No debt agreement, no break," Opinion, March 25 Debt hysteria, or "austerity," is the bad idea of late that just will not die. America does not have a debt crisis; it has an employment crisis, which, if appropriately addressed, would reduce the debt. Social Security does not contribute to the federal budget deficit; it is projected to pay out 100% of benefits due until at least 2033, and could remain at 100% forever by raising the contribution cap. Spiraling healthcare costs can be solved by doing three things: end fee-for-service, establish Medicare for all and allow Medicare to negotiate drug prices.
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